[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3732 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3732

     To provide for a credit for employers of tipped employees in 
determining the minimum wage required in States that require employers 
     to pay a minimum wage at a rate higher than the Federal rate.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 13, 2005

   Mr. Issa introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
     To provide for a credit for employers of tipped employees in 
determining the minimum wage required in States that require employers 
     to pay a minimum wage at a rate higher than the Federal rate.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Minimum Wage Fairness Act of 2005''.

SEC. 2. MINIMUM WAGE TIP CREDIT.

    Section 3(m) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
203(m)) is amended--
            (1) in paragraph (2), by inserting before the period the 
        following: ``Provided, That the tips shall not be included as 
        part of the wage paid to an employee to the extent they are 
        excluded therefrom under the terms of a bona fide collective 
        bargaining agreement applicable to the particular employee'';
            (2) by striking ``(m) `Wage''' and inserting ``(m)(1) 
        `Wage''';
            (3) by striking ``(1) the cash'' and inserting ``(A) the 
        cash'';
            (4) by striking ``(2) an additional'' and inserting ``(B) 
        an additional''; and
            (5) by adding at the end the following new paragraph:
    ``(2) Notwithstanding any other provision of this Act, any State or 
political subdivision of a State which, on and after the date of 
enactment of the Minimum Wage Fairness Act of 2005 prohibits any 
portion of a tipped employee's tips from being considered as wages in 
determining if such tipped employee has been paid the minimum wage 
rate, may not establish or enforce any such law, ordinance, regulation, 
or order with respect to tipped employees unless such law, ordinance, 
regulation, or order permits a tip credit in an amount not less than an 
amount equal to--
            ``(A) the cash wage paid such employee which is required 
        under such law, ordinance, regulation, or order on the date of 
        enactment of such Act; and
            ``(B) an additional amount on account of tips received by 
        such employee which amount is equal to the difference between 
        such cash wage and the minimum wage rate in effect under such 
        law, ordinance, regulation, or order or the minimum wage rate 
        in effect under section 6, whichever is higher.''.
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