New California Law Strengthens Protections Against Employee Tip Theft

December 30, 2025

California Senate Bill 648, authored by Senator Lola Smallwood-Cuevas and signed into law by Governor Gavin Newsom, takes effect January 1st to combat tip theft affecting service industry workers. The legislation addresses a significant problem where employers illegally withhold gratuities from employees, with studies showing employers steal between $2 billion and $4. 6 billion annually from California workers through various wage violations.

Who is affected

Restaurant servers, hotel staff, hairdressers, and other service workers who rely on gratuities
Minimum wage and low-wage service workers (particularly noted that nearly 1 in 55 low-wage workers in Los Angeles has experienced stolen tips)
Employers in the service industry who withhold employee tips
The California Labor Commissioner and Division of Labor Standards Enforcement (DLSE)
California consumers who leave tips

What action is being taken

The article states that SB 648 "takes effect on Jan. 1," indicating this is a future action rather than currently ongoing. No actions are explicitly described as currently ongoing in the article.

Why it matters

This legislation is significant because tip theft represents one of the most common forms of worker exploitation, particularly among minimum and low-wage service workers. Studies reveal that employers steal billions of dollars annually from California workers, with 19.2% of low-wage workers experiencing minimum wage violations each year. The law closes a critical enforcement gap—while California law previously declared tips as employee property, the Labor Commissioner lacked authority to issue citations or impose civil penalties. By providing accessible enforcement mechanisms and private rights of action, the law ensures vulnerable workers can recover stolen wages without needing expensive private attorneys, making tip protection meaningful rather than merely symbolic.

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint