§ 28-12-5 - Employees receiving gratuities – Incentive-based wages – Certain employees of nonprofit entities.
SECTION 28-12-5
§ 28-12-5 Employees receiving gratuities– Incentive-based wages – Certain employees of nonprofit entities.– (a) Every employer shall pay to each of his or her employees who, are engagedin any work or employment in which gratuities have customarily and usuallyconstituted a part of his or her weekly income, the rate as provided by§§ 28-12-3 and 28-12-3.1.
(b) Allowance for gratuities as part of the hourly wage ratefor restaurants, hotels, and other industries except taxicabs and limitedpublic motor vehicles shall be an amount equal to the applicable minimum ratesas provided by §§ 28-12-3 and 28-12-3.1 less two dollars andeighty-nine cents ($2.89) per hour. "Gratuities" means voluntary monetarycompensation received directly or indirectly by the employee for servicesrendered.
(c) Each employer desiring to deduct for gratuities as partof the minimum rates as provided in §§ 28-12-3 and 28-12-3.1 wagespaid to an employee shall provide substantial evidence that the amount shall beset out in the formula in subsection (b) of this section; however, the cashwage shall not be less than two dollars and eighty-nine cents ($2.89) per hour.The director of labor and training shall notify employers concerning what typeof proof shall be accepted as substantial evidence for the purpose of thissubsection. Employees involved shall be entitled to a hearing on the questionof the amount of deduction if they so desire.
(d) In cases where wages are figured by the employer on anincentive basis in such a manner that an employee of reasonable average abilityearns at least the minimum wage established by §§ 28-12-3 and28-12-3.1, it shall be taken that the employer has complied with this statute.It shall be of no concern to the director of labor and training how theemployer arrives at its wage scale so long as it is not unreasonable in itsdemands on the employee.
(e) Where, in the case of the employment of a full-timestudent who has not attained his or her nineteenth (19th) birthday engaged inthe activities of a nonprofit association or corporation, whose aims andobjectives are religious, educational, librarial, or community service innature, the employer-employee relationship does exist, the employer shall payto each such employee wages at a rate of not less than ninety percent (90%) ofthe minimum wage as specified in § 28-12-3. In case of any conflictbetween provisions of this section and those of § 28-12-3.1, theprovisions of § 28-12-3.1 shall govern.