SB-648 • 2026

Employment: gratuities: enforcement.

Labor

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Smallwood-Cuevas
Last action: 2025-07-30
Official status: Chaptered by Secretary of State. Chapter 93, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide details about specific penalties or enforcement mechanisms beyond investigation, citation issuance, and civil action.

Rules for Tipping: Making Sure Tips Stay with Workers

This law allows the Labor Commissioner to investigate and take action against employers who improperly collect or withhold tips meant for workers.

What This Bill Does

It authorizes the Labor Commissioner to investigate when an employer collects, takes, or receives a tip that should go to a worker.
The commissioner can issue a citation if they find out an employer has taken or withheld a tip illegally.
If needed, the commissioner can also file a civil action against employers who take tips from workers.

Who It Names or Affects

Employers and agents managing workplaces
Workers in industries where tipping is common

Terms To Know

Labor Commissioner: The person responsible for enforcing labor laws within the Division of Labor Standards Enforcement.
Gratuities: Tips given by customers to workers, usually as a reward for good service.

Limits and Unknowns

It does not specify what happens if an employer breaks the rules.
The law only addresses tips meant for employees and does not cover other types of payments or benefits.

Bill History

2025-07-30 California Legislative Information
Chaptered by Secretary of State. Chapter 93, Statutes of 2025.
2025-07-30 California Legislative Information
Approved by the Governor.
2025-07-25 California Legislative Information
Enrolled and presented to the Governor at 11 a.m.
2025-07-17 California Legislative Information
In Senate. Ordered to engrossing and enrolling.
2025-07-17 California Legislative Information
Read third time. Passed. (Ayes 75. Noes 0. Page 2595.) Ordered to the Senate.
2025-07-10 California Legislative Information
Read second time. Ordered to consent calendar.
2025-07-09 California Legislative Information
From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (July 9).
2025-07-02 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (July 1). Re-referred to Com. on APPR.
2025-06-26 California Legislative Information
From committee: Do pass and re-refer to Com. on JUD. with recommendation: To consent calendar. (Ayes 7. Noes 0.) (June 25). Re-referred to Com. on JUD.
2025-06-05 California Legislative Information
Referred to Coms. on L. & E. and JUD.
2025-05-29 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-05-29 California Legislative Information
Read third time. Passed. (Ayes 38. Noes 0. Page 1328.) Ordered to the Assembly.
2025-05-27 California Legislative Information
Ordered to special consent calendar.
2025-05-23 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 6. Noes 0. Page 1208.) (May 23).
2025-05-16 California Legislative Information
Set for hearing May 23.
2025-05-05 California Legislative Information
May 5 hearing: Placed on APPR. suspense file.
2025-04-25 California Legislative Information
Set for hearing May 5.
2025-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0. Page 836.) (April 22). Re-referred to Com. on APPR.
2025-04-09 California Legislative Information
Set for hearing April 22.
2025-04-09 California Legislative Information
From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 739.) (April 9). Re-referred to Com. on JUD.
2025-03-26 California Legislative Information
Set for hearing April 9.
2025-03-05 California Legislative Information
Referred to Coms. on L., P.E. & R. and JUD.
2025-02-21 California Legislative Information
From printer. May be acted upon on or after March 23.
2025-02-20 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 648, Smallwood-Cuevas.
Employment: gratuities: enforcement.
Existing law creates the Department of Industrial Relations, and establishes within the department the Division of Labor Standards Enforcement (DLSE), which is headed by the Labor Commissioner. The DLSE is generally charged with enforcing employment statutes and regulations, either in administrative actions or through litigation. Existing law imposes various administrative sanctions, civil fines and penalties, and criminal penalties for violations of employment statutes or regulations.
Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages
due the employee from the employer, and requires the Department of Industrial Relations to enforce these provisions.
This bill would authorize the Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the above-described provisions, as prescribed.

Current Bill Text

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