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Bill

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Measure

SB 648

Authors

Smallwood-Cuevas

Subject

Employment: gratuities: enforcement.

Relating To

relating to employment.

Title

An act to amend Section 351 of the Labor Code, relating to employment.

Last Action Dt

2025-07-30

State

Chaptered

Status

Chaptered

Active?

Vote Required

Majority

Appropriation

Fiscal Committee

Yes

Local Program

Substantive Changes

None

Urgency

Tax Levy

Leginfo Link

Bill

Actions

2025-07-30		Chaptered by Secretary of State. Chapter 93, Statutes of 2025.
2025-07-30		Approved by the Governor.
2025-07-25		Enrolled and presented to the Governor at 11 a.m.
2025-07-17		In Senate. Ordered to engrossing and enrolling.
2025-07-17		Read third time. Passed. (Ayes 75. Noes 0. Page 2595.) Ordered to the Senate.
2025-07-10		Read second time. Ordered to consent calendar.
2025-07-09		From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (July 9).
2025-07-02		From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (July 1). Re-referred to Com. on APPR.
2025-06-26		From committee: Do pass and re-refer to Com. on JUD. with recommendation: To consent calendar. (Ayes 7. Noes 0.) (June 25). Re-referred to Com. on JUD.
2025-06-05		Referred to Coms. on L. & E. and JUD.
2025-05-29		In Assembly. Read first time. Held at Desk.
2025-05-29		Read third time. Passed. (Ayes 38. Noes 0. Page 1328.) Ordered to the Assembly.
2025-05-27		Ordered to special consent calendar.
2025-05-23		Read second time. Ordered to third reading.
2025-05-23		From committee: Do pass. (Ayes 6. Noes 0. Page 1208.) (May 23).
2025-05-16		Set for hearing May 23.
2025-05-05		May 5 hearing: Placed on APPR. suspense file.
2025-04-25		Set for hearing May 5.
2025-04-23		From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0. Page 836.) (April 22). Re-referred to Com. on APPR.
2025-04-09		Set for hearing April 22.
2025-04-09		From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 739.) (April 9). Re-referred to Com. on JUD.
2025-03-26		Set for hearing April 9.
2025-03-05		Referred to Coms. on L., P.E. & R. and JUD.
2025-02-21		From printer. May be acted upon on or after March 23.
2025-02-20		Introduced. Read first time. To Com. on RLS. for assignment. To print.

Keywords

Tags

Versions

Chaptered		2025-07-30
Enrolled		2025-07-18
Introduced		2025-02-20

Last Version Text

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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Smallwood-Cuevas</ns0:AuthorText>
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		<ns0:Title> An act to amend Section 351 of the Labor Code, relating to employment. </ns0:Title>
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			<html:p>Existing law creates the Department of Industrial Relations, and establishes within the department the Division of Labor Standards Enforcement (DLSE), which is headed by the Labor Commissioner. The DLSE is generally charged with enforcing employment statutes and regulations, either in administrative actions or through litigation. Existing law imposes various administrative sanctions, civil fines and penalties, and criminal penalties for violations of employment statutes or regulations.</html:p>
			<html:p>Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages
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			<html:p>This bill would authorize the Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the above-described provisions, as prescribed.</html:p>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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				Section 351 of the 
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				 is amended to read:
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								(a)
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								No employer or agent shall collect, take, or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deduct any amount from wages due an employee on account of a gratuity, or require an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Every gratuity is hereby declared to be the sole property of the employee or employees to whom it was paid, given, or left for. An employer that permits patrons to pay gratuities by credit card shall pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment
				  processing fees or costs that may be charged to the employer by the credit card company. Payment of gratuities made by patrons using credit cards shall be made to the employees not later than the next regular payday following the date the patron authorized the credit card payment.
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								The Labor Commissioner may investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of this section. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the Labor Commissioner shall be the same as those set out in Section 1197.1, as appropriate.
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Last Version Text Digest

Existing law creates the Department of Industrial Relations, and establishes within the department the Division of Labor Standards Enforcement (DLSE), which is headed by the Labor Commissioner. The DLSE is generally charged with enforcing employment statutes and regulations, either in administrative actions or through litigation. Existing law imposes various administrative sanctions, civil fines and penalties, and criminal penalties for violations of employment statutes or regulations. Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer, and requires the Department of Industrial Relations to enforce these provisions. This bill would authorize the Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the above-described provisions, as prescribed.