Existing law prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, 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. Existing law declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. Existing law requires an employer that permits patrons to pay gratuities by credit card to 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. Existing law requires an employer to keep accurate records of all gratuities received by the employer and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations. Existing law requires the department to enforce these provisions, and an employer who violates these provisions is guilty of a misdemeanor.

This bill would also require employers in specific industries an entity, as defined, that permit permits a patron to pay for services performed by an employee a worker by debit or credit card to also accept a debit or credit card for payment of gratuity. The bill would require payment of a gratuity made by a patron using a debit or credit card to be made to the employee worker not later than the next regular payday following the date the patron authorized the debit or credit card payment. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, 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. Existing law declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. Existing law requires an employer that permits patrons to pay gratuities by credit card to 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. Existing law requires an employer to keep accurate records of all gratuities received by the employer and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations. Existing law requires the department to enforce these provisions, and an employer who violates these provisions is guilty of a misdemeanor.

This bill would also require an employer that permits employers in specific industries that permit a patron to pay for services performed by an employee by debit or credit card to also accept a debit or credit card for payment of gratuity. The bill would require payment of a gratuity made by a patron using a credit card to be made to the employee not later than the next regular payday following the date the patron authorized the credit card payment. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, 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. Existing law declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. Existing law requires an employer that permits patrons to pay gratuities by credit card to 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. Existing law requires an employer to keep accurate records of all gratuities received by the employer and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations. Existing law requires the department to enforce these provisions, and an employer who violates these provisions is guilty of a misdemeanor.

This bill would also require an employer that permits a patron to pay for services performed by an employee by debit or credit card to also accept a debit or credit card for payment of gratuity. The bill would require payment of a gratuity made by a patron using a credit card to be made to the employee not later than the next regular payday following the date the patron authorized the credit card payment. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

ASSEMBLY THIRD READING

ATR Bill Id:AB 1099

Author:(Gonzalez Fletcher)

As Amended Ver:May 30, 2017

Majority vote

SUMMARY: Requires entities as specified, which permit a patron to pay for services performed by a worker by debit or credit card, to also accept a debit or credit card for payment of gratuity. Specifically, this bill:

1. Defines "entity" as, an organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.
2. Requires an entity that permits a patron to pay for services performed by a worker by debit or credit card to also accept a debit or credit card for payment of gratuity.
3. Provides that payment of a gratuity made by a patron using a debit or credit card shall be made to a worker not later than the next regular payday following the date the patron authorized the debit or credit card payment.

FISCAL EFFECT: According to the Assembly Committee on Appropriations, Ongoing annual enforcement costs of approximately $300,000 (Labor Enforcement and Compliance Fund) for the Division of Labor Standards Enforcement (DLSE).

COMMENTS: The author argues, "By not allowing for the convenience of providing gratuity through the same payment medium as the underlying purchase of service, workers are being shortchanged of their potential earning power under this arrangement. The ability for workers in the gig economy to collect gratuities from a credit or debit card transaction is becoming more necessary as the economy moves away from cash transactions.

Additionally, a report published by the Pew Research Center in 2016 found that 8 percent of Americans work in the gig economy and 56% of those Americans indicated their income generated from the gig economy as "essential or important." Unfortunately, the average income of a gig economy worker under a labor platform has declined 6 percent since June 2014 according to an analysis published by the JPMorgan Chase Institute. The ability for workers in the gig economy to collect gratuities from a credit or debit card transaction is becoming more necessary as the economy moves away from cash transactions. AB 1099 will ensure we are aligning ourselves with the evolving consumer behavior."

See policy committee analysis for existing law and background on credit card payments and tips in California, and previous related legislation.

Arguments in Support

The Western Center on Law and Poverty writes in support, "There are instances that employers do not offer debit/credit card paying customers the opportunity to leave tips for employees. In the case of app-based gig economy workers, some are not given the discretion to accept tips since the hosting platform does not enable customers to leave a tip. There has been an increase in popularity in the usage of ride-sharing and food delivery service applications, which only allows a user to use if they're paying with a debit/credit card. For too many working men and women, tips can be the difference between living above the poverty line and living below it. This bill will simply enable customers to tip a worker for their services if they are using a debit/credit card to make a payment. AB 1099 will reduce the likelihood that low-wage workers live in poverty by increasing the likelihood that they can receive a tip – or at least by preventing technology from standing in the way of them receiving one.

A poll conducted by Gallup in 2016 found that 62% of Americans believe that they will see a cashless society during their lifetime since there's an increasing amount of payment options including, but not limited to debit/credit cards and electronic platforms. Furthermore, 56% of Americans from the ages of 18-29 reported that they do not feel comfortable carrying cash, which isn't much different from the national average of Americans at 42%. This change in cashless consumer behavior is evidence that it's time to start adapting to these changing times."

Arguments in Opposition

A coalition of employers including the California Chamber of Commerce argues in opposition, "Failure to comply with this requirement would subject employers to costly litigation under various sections of the Labor Code… Moreover, similar, legislation was just vetoed by Governor Brown last year…. We agree with Governor Brown, that government should not mandate the way credit cards should be utilized, but rather, leave it to the competitive marketplace. AB 1099 unfairly targets only certain California businesses, first, this requirement will create a significant administrative burden and costs for such businesses to revise all credit card and debit card receipts to ensure there is a line item available for a gratuity. Second, it will create the impression that a consumer should or is expected to leave a gratuity for services that are not customarily subject to a gratuity. AB 1099 also requires payment of the "tip" provided to the employee at the next payday. Businesses that are not in industries where tips are commonly accepted or expected would have to revise all existing pay stubs under Labor Code Section 226, to identify any gratuity paid to an employee."

TechNet is opposed and writes, "While this bill presents as only requiring employers to allow for a gratuity via credit card or debit card, we oppose AB 1099 because it will classify workers of online-enabled applications or platforms as employees. The placement of this code section is squarely in the Labor Code section reserved for Employee Regulation and Supervision (sections 200-2699.5). This placement would result in a re-classification of workers from "independent contractors" to "employees". Any change regarding the classification of independent contractors, whether for an online application or platform or other business industries, should be the result of thoughtful and inclusive discussions, not in legislation regarding the permission of patrons leaving a gratuity for services."

Analysis Prepared by: Taylor Jackson / L. & E. / 916-319-2091 FN: 0000835

Date of Hearing: May 10, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1099

Author:(Gonzalez Fletcher) – As Amended Ver:April 5, 2017

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires employers that allow debit or credit card payments for services performed by an employee to also allow a debit or credit card payment of gratuity, and this gratuity must be paid to the employee by the next regular payday. These requirements are limited to certain types of employers or employers within specific industries, as defined.

FISCAL EFFECT:

Ongoing annual enforcement costs of approximately $500,000 (Labor Enforcement and Compliance Fund) for the Division of Labor Standards Enforcement (DLSE). Many of the industries affected by this bill are also industries that DLSE prioritizes for investigation. As a result, violations of the provisions of this bill are likely to be identified during the normal course of DLSE operations. Because these violations are misdemeanors, DLSE can anticipate costs related to specialized personnel preparing these cases for criminal prosecution.

COMMENTS:

1. Non-cash payment types. While cash remains the dominant way to pay for goods and services in the United States, non-cash payments types are on the rise. Of the payment types that do not use cash, credit cards and debit cards are the most dominant and their use continues to increase. As of 2015, credit cards and debit cards were used in approximately 48% of transactions nationwide.
2. Current rules on credit and debit card tips. California businesses are not required to accept a credit or debit cards. If businesses do accept them, there are certain rules on how to process gratuity payments. Specifically, employers must credit the amount of gratuity as part of the employee’s wages, and the employer cannot deduct any payment processing fees or costs charged to the employer.
3. Purpose. The author notes that gratuities play an important role in the financial security of low-wage service workers and workers in the gig economy. AB 1099 aims to ensure that these workers receive fair compensation for their services in instances when those services are being paid for with a credit or debit card.
4. Types of employers. AB 1099’s requirements are limited to specific types of employers that routinely offer services to patrons. These employers include hotels, restaurants and food service, massage parlors, barbers and salons, car washes, and employers operating in the “gig economy.”

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: April 19, 2017

ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT

Tony Thurmond, Chair

ABPCA Bill Id:AB 1099 (

Author:Gonzalez Fletcher) – As Amended Ver:April 5, 2017

SUBJECT: Compensation: gratuities

SUMMARY: Requires an employer that permits a patron to pay for services performed by an employee, by debit or credit card, to also accept a debit or credit card for payment of gratuity. Specifically, this bill:

1. Requires an employer that permits a patron to pay for services performed by an employee by debit or credit card shall also accept a debit or credit card for payment of gratuity.
2. Provides that payment of a gratuity made by a patron using a credit card shall be made to an employee not later than the next regular payday following the date the patron authorized the credit card payment.
3. Provides that as used in this section, employer shall include only the following employers:
   1. A hotel, for purposes of this section hotel means any hotel, motel, bed and breakfast inn or other similar transient lodging establishment.
   2. An employer in the car washing and polishing industry registered as specified.
   3. An establishment licensed pursuant to the Barbering and Cosmetology Act as defined.
   4. A massage establishment as defined.
   5. A restaurant, for purposes of this section restaurant means any retail establishment serving food or beverages for onsite consumption.
   6. An organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined.

EXISTING LAW:

1. Prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, 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. 
2. Declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. 
3. Requires an employer that permits patrons to pay gratuities by credit card to 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. 
4. Requires an employer to keep accurate records of all gratuities received and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations (department). 
5. Requires the department to enforce these provisions, and that an employer who violates these provisions is guilty of a misdemeanor.

FISCAL EFFECT: Unknown

COMMENTS: The author argues that, “Assembly Bill 1099 will require employers to provide customers with an opportunity to pay a gratuity if they are paying for services using a debit or credit card at a hotel, restaurant, car wash, spa/nail salon/massage establishment, and gig economy workers providing app-based labor services. Consumer behavior is changing in the sense that people tend to carry less cash and rely more on credit and debit cards for payment.

Gratuities play an important role in the lives of workers since it increase the earnings of an individual, which is crucial with increasing prices of food and housing our state. This particularly impacts the earnings of people in the restaurant and food industry. According to the Pew Research Center, employers in these industries have the largest population of minimum wage workers. AB 1099 will ensure these workers receive their fair compensation for their services if their employer does not give a customer to leave a tip on a credit card.

Additionally, workers in the “gig economy” are frequently providing services to customers using on-demand apps that only allow for payment via credit or debit card. The type of services provided by gig economy workers include, but are not limited to, ride-hailing, shopping, delivery, cleaning and laundry services.

Unfortunately, some of these workers are not able to accept tips since their labor platform does not enable customers to leave a tip on the credit or debit card with which payment for services was made. This has exacerbated the insecurity in compensation that workers in the gig economy – as well as those in the service industry – suffer under. By not allowing for the convenience of providing gratuity through the same payment medium as the underlying purchase of service, workers are being shortchanged of their potential earning power under this arrangement.”

The author also states, “A poll conducted by Gallup in 2016 found that 62 percent of Americans believe that they will see a cashless society during their lifetime since there’s an increasing amount of payment options including, but not limited to debit and credit cards and electronic platforms. Furthermore, 56 percent of Americans from the ages of 18-29 reported that they do not feel comfortable carrying cash, which isn’t much different from the national average of Americans at 42 percent. This change in cashless consumer behavior is evidence that it’s time to start adapting to these changing times.

Additionally, a report published by the Pew Research Center in 2016 found that 8 percent of Americans work in the gig economy and 56 percent of those Americans indicated their income generated from the gig economy as “essential or important.” Unfortunately, the average income of a gig economy worker under a labor platform has declined 6 percent since June 2014 according to an analysis published by the JPMorgan Chase Institute. The ability for workers in the gig economy and the service industry to collect gratuities from a credit or debit card transaction is becoming more necessary as the economy moves away from cash transactions. AB 1099 will ensure we are aligning ourselves with the evolving consumer behavior.”

Credit Card Payments and Tips

Under current law, there is no requirement for licensed establishments to accept a certain form of payment for professional services. Establishment owners or individual licensees may choose to accept any form of payment for professional services including, but not limited to prohibiting checks, but accepting credit cards, or requiring cash-only transactions.

California businesses are not required to accept a credit card or debit card as a form of payment for services. Civil Code Section 1725(a) lists the specific requirements for businesses if they choose to accept credit cards, which include, but are not limited to, prohibiting the recording of a credit card number or contacting a credit card issuer to determine if the credit amount available will cover the amount of the purchase. Under current California law, LC Section 351 specifically prohibits an employer from collecting, taking, or requiring an employee to credit the amount of gratuity as part of the employee's wages. Additionally, LC Section 351specifies that if an employer permits gratuity to be paid though a credit card, the employer may not deduct any payment processing fees or costs that may be charged to the employer by the credit card company. Regardless of the form of payment, tips or gratuity belong solely to the employee, not the employer, and the provisions of this bill do not alter this existing structure in California.

At the federal level, according to information retrieved from a United States Department of Labor, Wage and Hour Division, "Where tips are charged on a credit card and the employer must pay the credit card company a percentage on each sale, the employer may pay the employee the tip, less that percentage. For example, where a credit card company charges an employer three percent on all sales charged to its credit service, the employer may pay the tipped employee 97 percent of the tips without violating the Fair Labor Standards Act. However, this charge on the tip may not reduce the employee's wage below the required minimum wage. The amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company."

Tips are discretionary (optional or extra) payments determined by a customer that employees receive from customers. Tips can be presented in the form of cash, electronic formats (credit, debit, gift cards or other electronic means), or as noncash items such as tickets. "Employees must report to their employer all cash tips received except for the tips from any month that total less than $20. Cash tips include tips received from customers, charged tips (for example, credit and debit card charges) distributed to the employee by his or her employer, and tips received from other employees under any tip-sharing arrangement."

Arguments in Support

UNITE- HERE, AFL-CIO writes in support that, “For many tipped employees the gratuities they receive far exceed the minimum wage and forms the majority of income for those workers. It is essential that they receive that income on a timely basis. This bill will assure that that occurs.”

The Western Center on Law and Poverty argues in support, “In California, nearly 80% of low-income families have a wage earner. It is unsustainable and dangerous for Californians to be paid poverty wages and for their children to grow up in impoverished working homes. Poverty wages also increases dependence on government safety-net programs. This is why approximately 40% of CalFresh recipients live in a working family. According to US Bureau of Labor Statistics, service employees have the highest rates of poverty, with over 13% of service employees living in poverty.2 Today more than one in 10 U.S. workers is employed in the leisure and hospitality sector.3 Thankfully, California does not allow for a sub-minimum wage for tipped workers, or ‘tip credit,’ which allows employers to pay tipped workers below the binding federal or state minimum wage. While this means that workers can still earn the minimum wage even though they do not earn a tip, it does not address the fact that nearly 70% of Californians living below the federal poverty line live in families that have earnings from work.

A poll conducted by Gallup in 2016 found that 62% of Americans believe that they will see a cashless society during their lifetime since there’s an increasing amount of payment options including, but not limited to debit/credit cards and electronic platforms. Furthermore, 56% of Americans from the ages of 18-29 reported that they do not feel comfortable carrying cash, which isn’t much different from the national average of Americans at 42%. This change in cashless consumer behavior is evidence that it’s time to start adapting to these changing times.

There are instances that employers do not offer debit/credit card paying customers the opportunity to leave tips for employees. Two areas that often do not allow the option of tips for customers paying with a debit/credit cards are hotel housekeeping employees and nail salon employees. In the case of app-based gig economy workers, some are not given the discretion to accept tips since the hosting platform does not enable customers to leave a tip. There has been an increase in popularity in the usage of ride-sharing and food delivery service applications, which only allows a user to use if they’re paying with a debit/credit card.

For too many working men and women, tips can be the difference between living above the poverty line and living below it. This bill will simply enable customers to tip a worker for their services if they are using a debit/credit card to make a payment. AB 1099 will reduce the likelihood that low-wage workers live in poverty by increasing the likelihood that they can receive a tip – or at least by preventing technology from standing in the way of them receiving one.”

Arguments in Opposition

TechNet is opposed unless amended and writes that, “While we have concerns regarding the gratuity requirement, not because we do not stand for employees being well compensated for their services, but because today and in the future, payment options and structures just may not need gratuity and this decision should be left to the businesses.

This being said, TechNet’s opposition on this bill is more fundamental due to the broad-brush approach taken with the recent amendments to AB 1099. We oppose AB 1099 because it would classify workers of online-enabled applications or platforms as employees. The placement of this code section is squarely in the Labor Code section reserved for Employee Regulation and Supervision (sections 200-2699.5). This placement would result in a re-classification of workers from “independent contractors” to “employees”, thus we request an amendment to strike (6) from the language. We respectfully ask that Section 352 (a) (6) be stricken from AB 1099. Any change regarding the classification of independent contractors, whether for an online application or platform or other business industries, should be the result of thoughtful and inclusive discussions and not a part of a bill where the intention is seemingly more narrow and direct.

For the reason stated above, we must oppose AB 1099. We want to respectfully thank you and your staff for your willingness to meet with us and as you indicated in our meeting in March, there is a desire to work with the innovation economy and we hope this will continue so that we can work together to understand your concerns and to be a conduit to support for the flourishing tech and innovation economy.”

A coalition of employers including the California Chamber of Commerce write in opposition that, “[This bill] unnecessarily requires targeted businesses who allow consumers to utilize debit or credit card payments to also provide an opportunity for those consumers to provide a gratuity by debit or credit card. Failure to comply with this requirement would subject employers to costly litigation under various sections of the Labor Code, including the Labor Code Private Attorney General Act (PAGA), Section 2698 et. seq. Moreover, similar, but narrower legislation, was just vetoed by Governor Brown last year…. We agree with Governor Brown, that government should not mandate the way credit cards should be utilized, but rather, leave it to the competitive marketplace.

AB 1099 unfairly targets only certain California businesses including hotel/lodging establishments, car washing/polishing businesses, barbery/cosmetology businesses, massage establishments, and an “online-enabled application or platform that connects workers to customers for labor services” by requiring these businesses to allow consumers to pay a gratuity by debit or credit card if the business allows payment of services by debit or credit card. First, this requirement will create a significant administrative burden and costs for such businesses to revise all credit card and debit card receipts to ensure there is a line item available for a gratuity. Second, it will create the impression that a consumer should or is expected to leave a gratuity for services that are not customarily subject to a gratuity. And, third if a customer does leave a gratuity, how does the business know to whom the gratuity should be provided? For example, it a hotel allows a guest to pay for the room by credit card and under AB 1099, provides a line item for a gratuity, how does the hotel know which employee should receive this compensation? Is the gratuity for the cleaning service provided? The assistance with luggage? The concierge? Allocating which employee(s) should receive the gratuity is a difficult determination that will subject an employer to litigation, as evidenced by tip pooling/sharing policies in the restaurant industry.

Specifically, Labor Code section 351 specifies that any gratuity is the sole property of the employee to whom it was left. There is ongoing debate in the restaurant industry where gratuities are customary as to whether the employer can mandate a tip pooling policy where tips are shared amongst all employees in the restaurant as well as whether supervisors who provide direct service to a customer are entitled to share in any collective tips left for a team of employees. See Budrow v. Dave & Buster's of California, Inc., 2009171 Cal.App.4th 875 (2009) (stating “[u]ltimately, the decision about which employees are to participate in the tip pool must be based on a reasonable assessment of the patrons' intentions. It is, in the final analysis, the patron who decides to whom the tip is to be “paid,” “given,” or “left.” It is those intentions that must be anticipated in deciding which employees are to participate in the tip pool.”); and Chau v. Starbucks Corporation, 174 Cal.App.4th 688 (2009) (allowing a shift supervisor to participate in tip sharing). Years of litigation over the allocation of tips have plagued the restaurant industry and created a disparity amongst employees who perform work in the back of the house versus those that provide direct service to a customer. AB 1099 will create that same uncertainty and litigation in the other industries that it targets given the lack of any guidance provided on how to properly allocate gratuities to employees, especially when the intent of the customer is unclear.

AB 1099 also requires payment of the “tip” provided to the employee at the next payday. Businesses who that are not in industries where tips are commonly accepted or expected, would have to revise all existing pay stubs under Labor Code Section 226, to identify any gratuity paid to an employee. Additionally, if the employer failed to correctly identify to whom the gratuity should be allocated, this would create additional liability under Section 226 for an inaccurate pay stub, with penalties under Section 226.7 as well as penalties under the Labor Code Private Attorney General Act (PAGA). Litigation under PAGA continues to rise each year due to the costly penalties and attorney’s fees associated with a representative action under this section. AB 1099 would contribute to that rise in litigation.”

Previous Related Legislation

SB 896 (Nguyen) of 2016 would have required a nail salon that accepts a debit or credit card as payment for nail care services to also accept a debit or credit card for payment of a tip, as specified. SB 896 was vetoed by the Governor. The Governor’s veto message stated:

“This bill requires a nail salon that accepts credit cards for nail care to also accept a credit card for the payment of tips. I understand the author's intent to encourage the giving of tips to nail salon workers, but I don't believe that government should mandate the use of credit cards as required by this bill. In matters like this, the competitive marketplace should be sufficient. I would also note that this bill lacks any enforcement mechanism.”

REGISTERED SUPPORT / OPPOSITION:

Support

California Labor Federation, AFL-CIO

California Teamsters Public Affairs Council

SEIU California

UNITE-HERE

Western Center on Law and Poverty

Oppose Unless Amended

TechNet

Opposition

California Attractions and Parks Association, Inc.

California Business Properties Association

California Chamber of Commerce

California Restaurant Association

California Retailers Association

Chamber Alliance of Ventura and Santa Barbara Counties

Family Business Association of California

Internet Association

National Federation of Independent Business

Professional Beauty Federation of California

Analysis Prepared by: Taylor Jackson / L. & E. / 916-319-2091