Calculate

March 3rd, 2014
By

Some state lawmakers have privately questioned whether a "poverty threshold" for a $1 tip credit in the state House's version of a minimum wage bill would be workable. Businesses would have to calculate whether workers earn at least 250 percent of the poverty level, or about $33,500, before deducting the tip credit from the minimum wage.

But the state Department of Labor and Industrial Relations has told the House Finance Committee that such calculations should not be too much of a burden on businesses.

Why?

A new state law passed last year requires businesses to keep accurate records of worker pay rates and provide workers with specific wage information on pay statements. The new requirement took effect in January.

From the law:

Every employer shall keep in or about the premises wherein any employee is employed a contemporaneous, true, and accurate record of [the]:

(1)  The name, address, and occupation of each [such] employee[, of the];

(2)  The amount paid each pay period to each [such] employee[, of the];

(3)  The hours worked each day and each workweek by each [such] employee[, and of such];

(4)  The rate or rates of pay of each employee and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or other basis; gross wages; deductions; allowances, if any, claimed as part of the minimum wage; and net wages; and

(5)  Any other information and for [such] the periods of time as the director [of labor and industrial relations] may by [regulation] rule prescribe.

And ...

Every employer shall furnish each employee at every pay period a legible printed, typewritten, or handwritten [notice] record showing the [employee's:] following:

(1)  The name of the employee;

(2)  The name of the employer;

(3)  The address and telephone number of the employer;

[(1)  Total] (4)  The employee's total hours worked;

[(2)  Overtime] (5)  The employee's regular and overtime hours;

[(3)  Straight-time] (6)  The employee's straight-time compensation;

[(4)  Overtime] (7)  The employee's overtime compensation;

[(5)  Other] (8)  Any other compensation[;], including allowances, if any, claimed as part of the minimum wage;

[(6)  Total] (9)  The employee's total gross compensation;

[(7)  Amount] (10)  The amount and purpose of each deduction;

[(8)  Total] (11)  The employee's total net compensation;

[(9)  Date] (12)  The date of payment; [and

(10)  Pay] (13)  The pay period covered; and

(14)  The rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or other basis, including overtime rate or rates of pay.  For employees paid a piece rate, the record shall indicate the applicable piece rate or rates of pay, and the number of pieces completed at each piece rate;

provided that in lieu of the printed, typewritten, or handwritten [notice] record required by this subsection and upon receipt of written authorization from the employee, the employer may provide an electronic [notice] record that may be electronically accessed by the employee."

4 Responses to “Calculate”

  1. Manoa_Fisherman:

    This is plain crazy. No one in their right mind would ever be able to keep such "accurate" records. Even the employees don't want the records to be accurate, because they don't want to declare their actual tips and pay taxes on it.

    Hawaii should go to a no tip situation and let the employers either pay the employees for their value of their work or include a service charge on all meals served and account for the payments to the workers on that shift.


  2. zzzzzz:

    What about people who have more than one job, including at least one in which they get tips? Will their employers for their tipped jobs have to keep information about how much they makes at their other jobs?

    And what about people who change jobs during the year? Do they have to provide their new employer with their earnings history from their previous jobs?


  3. Especially Incognito:

    I see less use or the need for unions.
    Saves employees for paying extra dues
    and the extra can be used help pay for Health Insurance.

    There is such thing as an audit in which, lingle said is "shoddy".


  4. Especially Incognito:

    IRS is keeping track if one moves from job to job.
    W-2 forms....If one is a conservative will be targeted
    by a liberal worker in the IRS. If one is liberal, they
    will be targeted by a conservative work in the IRS.

    Reason for an audit to keep people in a straight line.
    Not go too right or too left.


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