S.B. 1287 Summary

• Requires food, beverage, and service establishments that accept tips and employ tipped employees to post signs explaining their tip allocation practices at customer payment locations and employee notice areas.

• Signs must include one of three statements describing how tips are handled: kept entirely by individual employees, divided equally among all tip-eligible employees, or allocated by specific percentages to different job categories.

• Signs must also display contact information for reporting tip theft violations to the U.S. Department of Labor Wage and Hour Division (1-866-487-9243) and Hawaii Department of Labor and Industrial Relations Wage Standards Division (with county-specific phone numbers).

• Employers who fail to post required notices become liable to employees for back wages and penalties equivalent to the amount employees would have earned if all tips had been paid directly to them.

• Effective July 1, 2050.