AN ACT RELATING TO LABOR AND LABOR RELATIONS -- MINIMUM WAGES

HB 5507 gradually increases the minimum cash wage for employees in tipped occupations (like restaurants and hotels) who rely on gratuities. Starting from $3.89 per hour in 2017, it raises this rate by $0.50 annually until 2026, then increases by $2.00 each year through 2030 to reach $14.95 per hour. By January 1, 2031, these workers will receive the same minimum wage as non-tipped employees, eliminating the tip credit. The bill directly affects tipped workers in qualifying industries and requires employers to pay at least the stated cash wage without deducting gratuities below the specified thresholds.