7 LONG TITLE
8 General Description:
9 This bill enacts the Service Industry Transparency Act.
10 Highlighted Provisions:
11 This bill:
12 . defines terms;
13 . requires an employer to provide patrons with a written disclosure if the employer
14 retains or collects any portion of a service charge or gratuity;
15 . requires an employer to provide each prospective employee with a written
16 disclosure if the employer will retain or collect any portion of a service charge or
18 . establishes enforcement procedures and penalties for violation of the provisions of
19 this bill; and
20 . grants rulemaking authority to the Labor Commission.
21 Money Appropriated in this Bill:
23 Other Special Clauses:
25 Utah Code Sections Affected:
27 34-40a-101 , Utah Code Annotated 1953
28 34-40a-102 , Utah Code Annotated 1953
29 34-40a-201 , Utah Code Annotated 1953
30 34-40a-202 , Utah Code Annotated 1953
31 34-40a-203 , Utah Code Annotated 1953
32 34-40a-301 , Utah Code Annotated 1953
33 34-40a-302 , Utah Code Annotated 1953
34 34-40a-303 , Utah Code Annotated 1953
35 34-40a-304 , Utah Code Annotated 1953
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 34-40a-101 is enacted to read:
41 34-40a-101. Title.
42 (1) This chapter is known as the "Service Industry Transparency Act."
43 (2) This part is known as "General Provisions."
44 Section 2. Section 34-40a-102 is enacted to read:
45 34-40a-102. Definitions.
46 As used in this chapter:
47 (1) "Commission" means the Labor Commission created in Section 34A-1-103 .
48 (2) "Employee" means a service employee or a service bartender in the service of an
49 employer for compensation.
50 (3) "Employer" means a person who employs one or more service employees or service
51 bartenders under a contract of hire, express or implied, oral or written.
52 (4) "Gratuity" means a sum of money that:
53 (a) a patron pays or gives to an employee;
54 (b) is given as an acknowledgment of service performed by an employee;
55 (c) is in addition to the actual amount due for services rendered or for food, drink, or
56 other goods sold or served to the patron; and
57 (d) is voluntary.
58 (5) "Patron" means an individual who is served by a service employee at the service
59 employee's place of employment.
60 (6) "Service bartender" means an individual who prepares alcoholic or nonalcoholic
61 beverages for patrons to be served by another employee.
62 (7) "Service charge" means an amount charged by an employer to a patron that:
63 (a) is in addition to the charge for food, drink, or other goods; and
64 (b) a patron would reasonably expect to be given to an employee in lieu of, or in
65 addition to, a gratuity.
66 (8) "Service employee" means an individual, including a waitperson, bus person, and
67 counter staff, who:
68 (a) (i) serves beverages or prepared food to patrons;
69 (ii) clears tables; or
70 (iii) provides service directly to a patron;
71 (b) works in a place where prepared food or beverages are served;
72 (c) customarily receives gratuities; and
73 (d) has no managerial responsibility.
74 Section 3. Section 34-40a-201 is enacted to read:
76 34-40a-201. Title.
77 This part is known as "Gratuity and Service Charge Disclosure Requirements."
78 Section 4. Section 34-40a-202 is enacted to read:
79 34-40a-202. Disclosure to patron.
80 (1) If an employer retains any portion of a service charge or a gratuity or requires an
81 employee to remit to the employer any portion of a service charge or a gratuity, the employer
82 shall make a written disclosure to each patron that:
83 (a) states:
84 (i) that the employer will keep a portion of the service charge or the gratuity; and
85 (ii) the amount of the service charge or the gratuity, expressed either as a fixed dollar
86 amount or as a percentage, that will be paid to or retained by the employer; and
87 (b) is conspicuously displayed on each bill, each menu, or on a poster displayed in the
88 service area.
89 (2) Subsection (1) does not apply to an employer that retains or collects a portion of a
90 service charge or a gratuity if the entire amount retained or collected by the employer is
91 redistributed to employees as part of a pooling or sharing arrangement.
92 Section 5. Section 34-40a-203 is enacted to read:
93 34-40a-203. Disclosure to employee.
94 If an employer will retain any portion of a service charge or a gratuity or will require an
95 employee to remit to the employer any portion of a service charge or a gratuity, before the
96 employer hires a prospective employee, the employer shall:
97 (1) give the prospective employee a written disclosure that states:
98 (a) that the employer will keep a portion of each service charge or gratuity; and
99 (b) the amount of each service charge or gratuity, expressed either as a fixed dollar
100 amount or as a percentage, that will be paid to or retained by the employer;
101 (2) have the prospective employee sign the written disclosure described in Subsection
102 (1); and
103 (3) give the prospective employee a copy of the signed disclosure.
104 Section 6. Section 34-40a-301 is enacted to read:
106 34-40a-301. Title.
107 This part is known as "Administration and Enforcement."
108 Section 7. Section 34-40a-302 is enacted to read:
109 34-40a-302. Investigations -- Adjudications.
110 (1) The commission may investigate an alleged violation of this chapter.
111 (2) (a) An individual aggrieved by an employer's violation of this chapter may file a
112 request for agency action with the commission.
113 (b) Upon receipt of a request for agency action under Subsection (2)(a), the
114 commission shall proceed in accordance with Title 63G, Chapter 4, Administrative Procedures
115 Act, to determine whether the alleged violation occurred.
116 Section 8. Section 34-40a-303 is enacted to read:
117 34-40a-303. Penalty.
118 (1) If, in a proceeding under Section 34-40a-302 , the commission determines that an
119 employer violated a provision of this chapter, the commission shall comply with Subsections
120 (2) and (3), as applicable.
121 (2) (a) If the employer has not been found in violation of a provision of this chapter in
122 the one-year period immediately preceding the day on which the violation is found, the
123 commission shall issue an order requiring the employer to cease and desist any violation of this
125 (b) Thirty days after the day on which the commission issues an order under Subsection
126 (2)(a), the commission shall follow up with the employer to ensure that the employer has
127 complied with the order.
128 (c) If, at the 30-day follow-up described in Subsection (2)(b), the employer is in
129 violation of this chapter, the employer is subject to a fine of $50 per violation, not to exceed
130 $500 per day, regardless of the number of violations.
131 (3) If the employer has been found in violation of a provision of this chapter at least
132 once in the one-year period immediately preceding the day on which a violation is found, the
133 employer is subject to a fine of $50 per violation, not to exceed $500 per day, regardless of the
134 number of violations.
135 Section 9. Section 34-40a-304 is enacted to read:
136 34-40a-304. Rulemaking.
137 In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
138 consistent with this chapter, the commission may make rules governing:
139 (1) the process for filing a request for agency action with the commission; and
140 (2) procedures for enforcing the provisions of this chapter.
Legislative Review Note
as of 11-6-13 5:04 PM