Redraft 3

Tipped Minimum Wage tied to Consumer Price Index

Mr. Pacheco moved that the bill be amended by inserting after section 5 the following section:- “SECTION 5A. Section 7 of said chapter 151, as so appearing, is hereby amended by adding the following paragraph:-

The commissioner shall annually increase the minimum fair wage rate that an employer is required to pay a tipped employee by the percentage increase, if any, of the consumer price index as calculated for the northeast region for all urban consumers, as published by the Bureau of Labor Statistics of the United States Department of Labor, for the previous 12 month period and rounded up to the nearest 5 cents. The adjusted minimum fair wage rate for tipped employees shall be calculated and announced by the commissioner by April 1 of each year and shall become effective as the new minimum fair wage for tipped employees on July 1 of each year. Nothing in this paragraph shall limit the commissioner’s authority, under this chapter, to raise the fair wage rate for tipped employees.”; and in section 8, by striking out, in line 23, the words “and 4” and inserting in place thereof the following words:- “, 4 and 5A”.