AN ACT TO ENSURE FAIR WAGES FOR TIPPED WORKERS

WSB/2/1

Sponsored by Grey Palmer, Pierson Dean of Chattanooga School for the Arts and Sciences

This legislation was filed in the Labor and Workforce Development category

Presented as part of the YIG Volunteer 2024 conference

1 BE IT ENACTED BY THE TENNESSEE YMCA YOUTH IN GOVERNMENT:
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3 Section 1: Terms in this act will be defined as follows:
4 a. Tipped Worker: An employee who customarily and regularly receives more than $30 per month
5 in tips.
6 b. Standard Minimum Wage: The minimum hourly wage set by state law for non-tipped workers.
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8 Section 2: This act will raise the minimum wage for tipped workers in the state of Tennessee shall
9 to match the standard minimum wage for all other workers, which is $7.25. Workers will be paid
10 $7.25 regardless of additional tipped compensation.
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12 Section 3: To facilitate the transition to the new wage structure:
13 a. A phase-in period will be implemented over six months, during which the minimum wage for
14 tipped workers will gradually increase until it matches the standard minimum wage.
15 b. The Tennessee Department of Labor and Workforce Development shall provide guidance and
16 support to employers to ensure compliance with the new wage requirements.
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18 Section 4: Enforcement and penalties:
19 a. The Tennessee Department of Labor and Workforce Development shall oversee the
20 implementation and enforcement of this provision.
21 b. Employers found to be in violation of the minimum wage requirements shall be subject to fines
22 and penalties as determined by the department.
23 c. Tipped workers who believe they are not receiving the mandated minimum wage can file
24 complaints with the department for investigation.
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26 Section 5: The implementation and enforcement of this act will likely not require additional funding
27 to the Tennessee Department of Labor and Workforce development. Any additional funding
28 required for the enforcement of this law will come from fines implemented on businesses who are
29 found to be non-compliant.
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31 Section 6: All laws or parts of laws in conflict with this are hereby repealed.
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33 Section 7: This act shall take effect on January 1st 2025, the public welfare requiring it.
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