Expedited Bill No.  24-15                      

Concerning: Human Rights – Minimum Wage – Tipped Employee - Amendments                

Revised:    June 16, 2015  Draft No. 3  

Introduced:      May 21, 2015                 

Enacted:         June 23, 2015                

Executive:       June 30, 2015                

Effective:        July 1, 2015                   

Sunset Date:  None                             

Ch.   30    , Laws of Mont. Co.    2015    


County Council

For Montgomery County, Maryland


Lead Sponsors: Councilmembers Berliner, Katz, Council Vice President Floreen, and Councilmember Rice



(1)        modify the amount of the tip credit an employer can use to calculate the minimum wage for a tipped employee working in the County:

(2)        require an employer of a tipped employee to submit quarterly wage reports;

(3)        require the Executive to establish an online reporting system for quarterly wage reports; and

(4)        generally amend the law governing the minimum wage for a tipped employee working in the County.


By amending

            Montgomery County Code

            Chapter 27, Human Rights and Civil Liberties

            Section 27-69



Boldface Heading or defined term.

Underlining Added to existing law by original bill.

[Single boldface brackets] Deleted from existing law by original bill.

Double underlining Added by amendment.

[[Double boldface brackets]] Deleted from existing law or the bill by amendment.

* * * Existing law unaffected by bill.









The County Council for Montgomery County, Maryland approves the following Act:

          Sec. 1.  Section 27-69 is amended as follows:

27-69.         Tipped Employees.

(a)     Definition.  As used in this Section, tipped employee means:

(1)     an employee who:

(A)    is engaged in an occupation in which the employee customarily and regularly receives more than $30 each month in tips;

(B)     has been informed by the employer about the provisions of this Section; and

(C)     has kept all of the tips that the employee received.

(2)     Notwithstanding paragraph (1)(C), this Section does not prohibit the pooling of tips.

(b)     Computation of wage.  Except as provided in subsection (c), an employer may include, as part of the wage of a tipped employee:

(1)     an amount that the employer sets to represent the tips of the employee; or

(2)     if the employee or representative of the employee satisfies the Director that the employee received a lesser amount in tips, the lesser amount.

(c)      Limit.  The tip credit amount that the employer may include under subsection (b) must not exceed the County minimum wage less [50% of the minimum wage required for that employee under the State Act] $4.00 per hour.

(d)     Reports. An employer who employs a tipped employee in the County must submit a quarterly wage report within 30 days after the end of each quarter to the Director certifying that each tipped employee was paid the minimum wage required by this Section.

(e)      Online reporting system.  The Executive must establish an internet based reporting system as an optional method for an employer of a tipped employee to submit the quarterly wage report required by subsection (d).

Sec. 2.         Expedited Effective Date.

          The Council declares that this legislation is necessary for the immediate protection of the public interest.  This Act takes effect on July 1, 2015.