Tipped employees

(a) Base minimum wage for tipped employees and tips retained by employees Section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)(i)) is amended to read as follows: (i) the cash wage paid such employee, which for purposes of such determination shall be not less than— (I) for the 1-year period beginning on the effective date under section 121(e) of the BE HEARD in the Workplace Act, $3.60 an hour; (II) for each succeeding 1-year period until the hourly wage under this clause equals the wage in effect under section 6(a)(1) for such period, an hourly wage equal to the amount determined under this clause for the preceding year, increased by the lesser of— (aa) $1.50; or (bb) the amount necessary for the wage in effect under this clause to equal the wage in effect under section 6(a)(1) for such period; and (III) for each succeeding 1-year period after the increase made pursuant to subclause (II)(bb), the minimum wage in effect under section 6(a)(1); and. (b) Tips retained by employees Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended— (1) in the second sentence of the matter following clause (ii), by striking of this subsection, and all tips received by such employee have been retained by the employee and inserting of this subsection. Any employee shall have the right to retain any tips received by such employee; and (2) by adding at the end the following: An employer shall inform each employee of the right and exception provided under the preceding sentence.. (c) Publication of notice Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) is amended by adding at the end the following: (h) Not later than 60 days prior to the effective date of any increase in the required wage determined in accordance with subclause (II) or (III) of section 3(m)(2)(A)(i), the Secretary shall publish in the Federal Register and on the website of the Department of Labor a notice announcing each increase in such required wage.. (d) Scheduled repeal of separate minimum wage for tipped employees (1) Tipped employees Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)), as amended by subsections (a) and (b), is further amended by striking the sentence beginning with In determining the wage an employer is required to pay a tipped employee, and all that follows through of this subsection. and inserting The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1).. (2) Publication of notice Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as amended by subsection (c), is further amended by striking subsection (h). (3) Effective date The amendments made by paragraphs (1) and (2) shall take effect on the date that is one day after the date on which the hourly wage under subclause (III) of section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)(i)), as amended by subsection (a), takes effect. (e) Effective date Except as provided in subsection (d)(3), this section and the amendments made by this section shall take effect on the first day of the third month that begins after the date of enactment of this Act.