MN SF4709

Adds new subdivision 3a to Minnesota Statutes section 177.24 requiring gratuities received through debit cards, credit cards, charge cards, or electronic payments to be credited to the pay period in which they are received by the employee.

Mandates that the full amount of gratuity indicated in a card or electronic payment must be distributed to the employee no later than the next scheduled pay period.

Repeals Minnesota Rules part 5200.0080, subpart 7, which previously allowed service companies to deduct from tips the same percentage they deducted from total bills.

Both the new statute and the repeal become effective August 1, 2024.

Introduced by Senate authors Seeberger and Oumou Verbeten; referred to Labor committee on March 7, 2024.