H.B. 166/S.B. 280 (2019) require restaurants to provide wage statements that show the effective hourly tip rate as derived from employer -paid cash wages plus all reported tips for tip credit hours worked each workweek of the pay period. NPRC noted that the amount of space on wage statements is limited.  The proposed regulation permits employers to produce a tip credit wage statement separately from the existing pay statements and within two weeks following the end of the pay period, and to provide “an online system through which an employee may obtain the employee’s tip credit wage statement.” APA and NPRC support both of these provisions.

Separately, we asked for clarification of the effective date, since many payroll systems, and even point-of-sale systems will need to make significant programming changes to move from payroll inputs that are on a pay period basis (i.e., total hours and earnings for a two-week period), to weekly.  Not all systems pass pay period results to payroll systems by workweek. Programming changes of this nature typically require six months to a year, from the date of any final regulations or specifications.