SB 673 — Up Minimum Wages/No Subminimum or Exemptions.

FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA AprSESSION 7, 2021 S.B.S 1 SENATE BILL 673 Short Title:

673 SESSION 2021 PRINCIPAL CLERK S D SENATE BILL DRS35253-LR-84 Short Title:

Rules and Operations of the Senate April 8, 2021 A BILL TO BE ENTITLED AN ACT INCREASING THE REGULAR MINIMUM WAGE TO FIFTEEN DOLLARS PER HOUR BY 2023, INCREASING AND PHASING OUT THE TIPPED EMPLOYEE MINIMUM WAGE THROUGH 2025, PROVIDING FOR INFLATIONARY ADJUSTMENTS TO THE MINIMUM WAGE BASED UPON INCREASES IN THE CONSUMER PRICE INDEX, REPEALING THE SUBMINIMUM WAGE FOR SPECIFIED WORKERS, AND REPEALING EXEMPTIONS FROM THE MINIMUM WAGE FOR AGRICULTURAL AND DOMESTIC WORKERS.

City Average for All Items), CPI-I, or its successor index, as calculated bybythe the U.S.

(b) In order to prevent curtailment of opportunities for employment, the wage rate for full-time students, learners, apprentices, and messengers, as defined under the Fair Labor *DRS35253-LR-84**S673-v-1* General Assembly Of North Carolina Session 2021 Standards Act, shall be ninety percent (90%) of the rate in effect under subsection (a) above, rounded to the lowest nickel.

(d) The Commissioner, in order to prevent curtailment of opportunities for employment of the economically disadvantaged and the unemployed, may, by regulation, establish a wage rate not less than eighty-five percent (85%) of the otherwise applicable wage rate in effect under subsection (a) which shall apply to all persons (i) who have been unemployed for at least 15 weeks and who are economicallyeconomicallydisadvantaged, disadvantaged, or (ii) who are, or whose families are, receiving Work First Family Assistance or who are receiving supplemental security benefits under Title XVI of the Social Security Act.

203(m), if the tipped employee is notified in advance, is permitted to retain all tips and the employer maintains accurate and complete records of tips received by each employee as such tips are certified by the employee monthlymonthlyor or for each paypayperiod. period.

Tip pooling shall also be permissible among employees whocustomarilywhocustomarilyand andregularlyreceivetips; regularly receivetips;

however,nohowever,noemployee's employee's tips maybereducedbymore than fifteen percent (15%) under a tip pooling arrangement.

18, effective August 23, 2006." INCREASE TIPPED EMPLOYEE MINIMUM WAGE SECTION2.(a) EffectiveJanuary1,2022,until December31,2022,December31,2022,G.S. G.S.

203(m), if the tipped employee is notified in advance, is permitted to retain all tips and the employer maintains accurate and complete records of tips received by each employee as such tips are certified by the employee monthlymonthlyor or for each paypayperiod. period.

Even if the employee refuses to certifycertifytips tips accurately, tips may still be counted as wages when the employer complies with the other requirements of this section and can demonstrate by monitoring tips that the employee regularly receives tips in the amount for which the credit is taken.

Page 2 DRS35253-LR-84Senate Bill 673-First Edition General Assembly Of North Carolina Session 2021 "(f) Tips earned by a tipped employee may be counted as wages only up to the amount of six dollars and fifty cents ($6.50) nine dollars and fifty cents ($9.50) per hour per hour.

however, no employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling arrangement." SECTION2.(c) EffectiveJanuary1,2024,until December31,2024,December31, 2024, G.S.

§ 207(a), the employer or employee subject to that alternate method shall be exempt from the provisions of DRS35253-LR-84Senate Bill 673-First Edition Page 3 General Assembly Of North Carolina Session 2021 G.S.

(7) Any person employed as a model, or as an actor or performer in motion pictures or theatrical, radioortelevisionproductions,asradioortelevisionproductions, as defined underthe Fair Labor Standards Act, except as otherwise specifically provided in G.S.

Page 4 DRS35253-LR-84Senate Bill 673-First Edition General Assembly Of North Carolina Session 2021 Hours worked in accordance with this subsection shall not be considered hours worked for purposes of G.S.

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