Joint Standing Committee on Labor

LD 1893 An Act to Conform the Maine Tip Credit to the Federal POCKET VETO Tip Credit Sponsor(s) Committee Report Amendments Adopted KERR OTP-AM AMERO
Under current Maine law and federal law, the effective minimum wage for employees who earn tips is 50% of the minimum wage. An employer is entitled to take a tip credit of up to 50% of the minimum wage to account for tips received by the employee. Under a pending change in federal law, the minimum wage will increase to $4.75 on October 1, 1996 and the effective minimum wage for employees who earn tips will be frozen at its current level of $2.13 per hour. This bill proposed makingthe required wage for employees who earn tips under state law the same as it is under federal law.


Committee Amendment "A" (H-923) added a fiscal note to the bill. Senate Amendment "A" (S-601) removed the emergency preamble and the emergency clause from the bill.

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