City of Philadelphia - File #: 110341

• File #: 110341
• Version: 1
• Type: Bill
• Status: ENACTED
• File created: 5/5/2011
• In control: Committee on Rules
• Final action: 11/17/2011
• Title: Amending Chapter 9-600 of The Philadelphia Code, entitled "Service and Other Businesses," by adding a new Section regulating an employer's treatment of gratuities left by patrons for employees, including, but not limited to, a requirement that all gratuities be paid over to employees without deduction, including, in the case of a gratuity paid by credit card, any deduction for credit card processing fees; providing penalties for violations; and providing for a private right of action for employees aggrieved by violations of the Section; all under certain terms and conditions.
• Sponsors: Councilmember Kenney
• Indexes: GRATUITIES
• Code sections: 9-600 - Service Businesses

Date	Ver.	Action By	Action	Result	Tally
11/29/2011	1	MAYOR	SIGNED
11/17/2011	1	CITY COUNCIL	READ
11/17/2011	1	CITY COUNCIL	PASSED	Pass	14:2
11/3/2011	1	CITY COUNCIL	ORDERED PLACED ON THIS DAY`S FIRST READING CALENDAR
11/3/2011	1	CITY COUNCIL	SUSPEND THE RULES OF THE COUNCIL	Pass
11/1/2011	0	Committee on Rules	HEARING NOTICES SENT
11/1/2011	0	Committee on Rules	HEARING HELD
11/1/2011	0	Committee on Rules	AMENDED
11/1/2011	1	Committee on Rules	REPORTED FAVORABLY, RULE SUSPENSION REQUESTED
5/5/2011	0	CITY COUNCIL	Introduced and Referred	Pass

Title
Amending Chapter 9-600 of The Philadelphia Code, entitled "Service and Other Businesses," by adding a new Section regulating an employer's treatment of gratuities left by patrons for employees, including, but not limited to, a requirement that all gratuities be paid over to employees without deduction, including, in the case of a gratuity paid by credit card, any deduction for credit card processing fees; providing penalties for violations; and providing for a private right of action for employees aggrieved by violations of the Section; all under certain terms and conditions.

Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:

SECTION 1. Chapter 9-600 of The Philadelphia Code is hereby amended to read as follows:
CHAPTER 9-600. SERVICE AND OTHER BUSINESSES.
* * *
§9-614. [Reserved.] Payment of Gratuities to Employees.
(1) Definitions.
(a) "Gratuity." Money paid or given to or left for an employee by a patron of a business over and above the amount due the business for services rendered to the patron or for goods, food, drink, or articles sold or served to the patron.
(2) Required and Prohibited Practices.
(a) Every gratuity shall be the sole property of the employee or employees to whom it was paid, given, or left for, and shall be paid over in full to such employee or employees. No employer may deduct any amount from wages due to an employee on account of a gratuity, or require an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due to the employee from the employer.
(b) An employer that permits patrons to pay gratuities by credit card shall pay employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deduction for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Payment of gratuities made by patrons using credit cards shall be made to the employees not later t...