860

LAWS OF MARYLAND

Ch. 238

(Senate Bill 247)

AN ACT concerning

Wage and Hour Law - Tips

FOR the purpose of changing the criteria for determining the
wage of a tipped employee under the Wage and Hour Law;
providing that the Law shall be applied only in certain
instances; and changing the definition for "tipped
employee".

BY repealing and reenacting, with amendments,

Article 100 - Work, Labor and Employment

Section 82(b) and (i)

Annotated Code of Maryland

(1964 Replacement Volume and 1978 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 100 - Work, Labor and Employment

82.

(b) "Wage" means compensation due to an employee by
reason of his employment, payable in legal tender of the
United States or checks on banks convertible into cash on
demand at full face value, subject to such allowances as may
be permitted by regulations of the Commissioner of Labor and
Industry under § 85; provided that a "wage" paid to any
employee includes the reasonable cost, as determined by the
Commissioner, to the employer of furnishing such employee,
with board, lodging, or other facilities as are customarily
furnished by such employer to his employees: provided
further that the cost of board, lodging or other facilities
shall not be included as a part of the wage paid to any
employee to the extent it is excluded therefrom under the
terms of a bona fide collective-bargaining agreement
applicable to the particular employee: and provided further,
that the Commissioner is authorized to determine the fair
value of such board, lodging or other facilities for defined
classes of employees and in defined areas, based on average
cost to the employer or to groups of employers similarly
situated, or average value to groups of employees, or other
appropriate measures of fair value. Such evaluations,
where applicable and pertinent, shall be used in lieu of
actual measure of cost in determining the wage paid to any
employee. In determining the wage of a tipped employee,
the amount paid such employee by his employer shall be
deemed to be increased on account of tips by an amount
determined by the employer, but not by an amount in excess
of [50 per centum] 45 PERCENT, AND BEGINNING JANUARY 1,
1980, 40 PERCENT, of the applicable minimum wage rate,