Tipped employees

(a) Section 3(m)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)) is amended to read as follows: (2) (A) In determining the wage an employer is required to pay a tipped employee, the amount paid such employee by the employee's employer shall be an amount equal to— (i) $7.09 an hour, beginning on the date described in subsection (a)(1)(A) of section 6; (ii) $12.05 an hour, beginning 12 months after such date; (iii) $17.00 an hour, beginning 24 months after such date; and (iv) the amount in effect under section (a)(1) of section 6, beginning 36 months after such date. Any employee shall have the right to retain any tips received by such employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips. An employer shall provide to the employee a notice of the tips received by such employee for each day that such employee works. (B) An employer may not keep tips received by its employees for any purposes, including— (i) allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit; or (ii) recovering the cost to the employer of processing tips.. (b) Effective date The amendments made by this section shall take effect on the date that is 1 year after the date of enactment of this Act.