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 purposes of such an employer that is a large employer— (aa) $6.00 an hour, beginning on the effective date under section 10 of the Living Wage For All Act; (bb) $9.00 an hour, beginning 1 year after such effective date; (cc) $12.00 an hour, beginning 2 years after such effective date; (dd) $15.00 an hour, beginning 3 years after such effective date; (ee) $18.00 an hour, beginning 4 years after such effective date; and (ff) beginning 5 years after such effective date, and annually thereafter, the minimum wage in effect under section 6(a)(1)(A); and (II) for purposes of an employer that is not a large employer— (aa) $4.75 an hour, beginning on the effective date under section 10 of the Living Wage For All Act; and (bb) beginning 1 year after such effective date, and annually thereafter, an hourly wage that is the lesser of— (AA) an hourly wage equal to the amount determined under this subclause for the preceding year increased by $1.75; or (BB) the minimum wage rate in effect under section 6(a)(1)(B); 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) Scheduled repeal of separate minimum wage for tipped employees (1) Tipped employees (A) In general 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) for the relevant employer.. (B) Effective date The amendment made by subparagraph (A) shall take effect on the date that is 1 day after the date on which the minimum cash wage rate required under section 3(m)(2)(A)(i)(II)(bb) first equals the minimum wage in effect under section 6(a)(1)(B). (2) Publication of notice for large employers (A) In general Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act, is amended by striking subclauses (I) and and inserting subclause. (B) Effective date The amendment made by subparagraph (A) shall take effect on the date that is 1 day after the date on which the minimum cash wage rate required under section 3(m)(2)(A)(i)(I)(ff) takes effect. (3) Publication of notice for other employers (A) In general Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act and amended by paragraph (2), is further amended by striking or in accordance with subclause (II) of section 3(m)(2)(A)(i). (B) Effective date The amendment made by subparagraph (A) shall take effect on the date described in paragraph (1)(B). (d) Penalties Section 16 of the Fair Labor Standards Act of 1938 (29 U.S.C. 216) is amended— (1) in the third sentence of subsection (b), by inserting or used after kept; (2) in the seventh sentence of subsection (c), by inserting or used after kept; and (3) in the second sentence of subsection (e)(2), by inserting or used after kept.