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09.12.41 - Wage and Hour Law - Pending Regulations

 

PROPOSED ACTION ON REGULATIONS
MARYLAND REGISTER, VOLUME 40, ISSUE 21
FRIDAY, OCTOBER 18, 2013

Subtitle 12 DIVISION OF LABOR AND INDUSTRY

09.12.41 Wage and Hour Law

Authority: Labor and Employment Article, [§2-106(c)(1)] §2-106(c), Annotated Code of Maryland

Notice of Proposed Action
[13-316-P]

The Commissioner of Labor and Industry proposes to amend Regulation .19 under COMAR 09.12.41 Wage and Hour Law.

Statement of Purpose

The purpose of this action is to amend Maryland's wage and hour regulations to provide that a tipped employee may spend up to 20 percent of their time performing non-tip producing duties related to their tipped occupation and be paid at a tipped employee rate. The regulation provides that a tipped employee who spends more than 20 percent of their time on non-tip producing duties is required to be paid at least the minimum wage rate for that time. These amendments will make Maryland's tipped employee regulation consistent with federal wage and hour regulations related to tipped employees..

Comparison to Federal Standards

There is a corresponding federal standard to this proposed action, but the proposed action is not more restrictive or stringent.

Estimate of Economic Impact

I. Summary of Economic Impact. The proposed action does have an economic impact, but the economic impact is a positive one. This proposal will give employers the flexibility to allow their employees to spend up to 20 percent of their time performing non-tip producing duties related to their tipped occupation and be paid at a tipped employee rate.

 
Revenue (R+/R-)
 
II. Types of Economic
Impact.
Expenditure
(E+/E-)
Magnitude

A. On issuing agency: NONE
 
B. On other State agencies: NONE
 
C. On local governments: NONE
Benefit (+)
Cost (-)
Magnitude
D. On regulated industries or trade groups: (+) Indeterminable

E. On other industries or trade groups: NONE  
 
F. Direct and indirect effects on public: NONE
 

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

D. Regulated industries will be impacted because the regulation will allow employers to pay employees who spend up to 20 percent of their time performing non-tip producing duties related to their tipped occupation and be paid at a tipped employee rate.

Economic Impact on Small Businesses

The proposed action has a meaningful economic impact on small business. An analysis of this economic impact follows.

The economic impact on small businesses will be positive as small businesses will have the flexibility to pay the tipped employee wage rate to employees who spend up to 20 percent of their work time performing non-tip producing duties related to their tipped occupation.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Debbie Stone, Regulations Coordinator, Department of Labor, Licensing, and Regulation, Division of Labor and Industry, 1100 N. Eutaw Street, Room 606, Baltimore, Maryland 21201, or call 410-767-2225, or email to dstone@dllr.state.md.us, or fax to 410-767-2986. Comments will be accepted through November 18, 2013. A public hearing will be held on November 5, 2013, at 10 a.m., 1100 N. Eutaw Street, Room 606, Baltimore, Maryland 21201, for the purpose of affording interested persons the opportunity to submit data or comments in writing or orally. Any interested person desiring to participate in this hearing should give written notification of intention to appear not later than October 29, 2013, to Commissioner of Labor and Industry, Attention: Debbie Stone, Regulations Coordinator, Division of Labor and Industry, 1100 North Eutaw Street, Room 606, Baltimore, Maryland 21201, or call (410) 767-2225, or fax to (410) 767-2986, or email dstone@dllr.state.md.us.

The notice must state the name and address of the person to appear, the capacity in which the person will appear, and the approximate amount of time required for the person's participation.

.19 Regular Hourly Rate.
  A.—C. (text unchanged)
  D. Gratuities and Tips.
    (1)—(2) (text unchanged)
    (3) A tipped employee’s wages must equal at least the minimum wage when direct wages and tips are combined.
    (4) A tipped employee who spends more than 20 percent of the employee’s work time performing non-tip producing duties directly related to their tipped occupation shall be paid by the employer at least the minimum wage for that time.
  
E. (text unchanged)

J. RONALD DEJULIIS
Commissioner of Labor and Industry