I wrote this because of the very problematic history with tipping origins in western culture, and the ongoing issues with customers biases influencing employee wages. In addition, it prevents exploitive practice by employers who hire tipped workers, but then have them complete tasks for which are not tipped. This act is intended to make compensation equitable to employees and prevent exploitation of employees who currently worked tipped jobs.
AN ACT Relating to labor; amending the Idaho Code to prohibit solicitation of tipping, raising the minimum wage for all tipped employees, including delivery service employees, and providing a commission for employees who qualify as tipped employees under federal law; providing penalties for violations; and providing an effective date.
Be It Enacted by the Legislature of the State of Idaho:
SECTION 1. SHORT TITLE.
This act shall be known and may be cited as the “Empowering Service and Delivery Workers Act”
SECTION 2. AMENDMENTS TO IDAHO CODE.
(a) The Idaho Code is amended by adding a new section to read as follows:
“Prohibition of Solicitation of Tips.
(1) No employer or employee shall solicit any tip or gratuity from a customer in connection with any transaction for the sale of goods or services.
(2) No employer shall include any solicitation for tips or gratuities on receipts, invoices, electronic payment systems, or any other method used to collect payment from customers.”
(b) The Idaho Code, Section 44-1502, is amended to read as follows:
“44-1502. MINIMUM WAGE.
(1) Except as provided in subsection (2) of this section, every employer shall pay to each employee an hourly wage not less than the federal minimum wage, as specified in 29 U.S.C. section 206(a)(1), and as adjusted by any future amendments.
(2) Employees who qualify as tipped employees under federal law shall be paid the same minimum wage as all other employees, as specified in subsection (1) of this section.”
(c) The Idaho Code is amended by adding a new section to read as follows:
“Delivery Service Employee Compensation.
(1) Delivery service employees, including those employed by third-party platforms such as DoorDash, Grubhub, or similar services, shall be paid a wage not less than the minimum wage specified in Idaho Code Section 44-1502.
(2) In addition to the minimum wage, delivery service employees shall be compensated for mileage driven during the course of their employment at a fixed rate based on fuel usage. The Idaho Department of Labor shall determine and periodically update the mileage rate.
(3) The costs associated with the mileage compensation shall be covered by the service fees charged by the third-party platforms or delivery service providers.”
(d) The Idaho Code is amended by adding a new section to read as follows:
“Commission for Employees who Qualify as Tipped Employees under Federal Law.
(1) Employers shall provide employees who qualify as tipped employees under federal law with a commission equal to 5% of the total sale of goods or services they provide, excluding warranties and service agreements.
(2) The commission shall be paid on a regular basis, in accordance with the employer's established payroll schedule.”
SECTION 3. PENALTIES.
(a) Any employer who violates the provisions of this act shall be subject to a civil penalty not to exceed $1,000 for each violation.
(b) Any employer found in violation of this act shall be required to pay restitution to affected employees, including any back wages owed as a result of the violation, in addition to any penalties imposed under subsection (a).
SECTION 4. EFFECTIVE DATE.
This act shall take effect on January 1, [Year], and shall apply to all transactions occurring on or after that date.