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Relating to the payment of gratuities to certain employees.
No significant fiscal implication to the State is anticipated.
Texas Action opposes HB 133. This bill infringes on the employer/employee relationship by mandating certain business practices. Prohibiting a business from recovering the costs of swipe fees associated with tips added to a bill paid by credit or debit card increases the cost of doing business and essentially requires an employer to subsidize an employee's gratuity.
Restaurants already run on extremely
tight margins and this bill may push restaurants that are
barely surviving over the edge. The servers this intends to help would be
unintentionally harmed because they would lose their jobs entirely in the event that their employers go out of business.