; and (bb) the portion of such charge, if any, which upon its collection will be paid in full by the employer directly to employees; and (II) promptly pay to employees upon collection of such charge any portion identified in the disclosure required under subclause (I)(bb). (ii) In any case in which an employer represents that a charge is payable at the discretion of the customer, the employer may not add such charge to the cost of any product or service unless first requested by the customer. . (f) Penalties Section 16(e)(2) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 216(e)(2) ) is amended— (1) by striking section 3(m)(2)(B) and inserting any provision of section 3(m)(2) ; and (2) by inserting or used after kept . (g) Effective date The amendments made by this section shall take effect on the date of enactment of this Act and shall apply with respect to all tips received on or after such date. 4. Service charges treated as tips for purposes of employer credit for social security taxes, etc (a) In general Section 3121(q) of the Internal Revenue Code of 1986 is amended by adding at the end the following: In the case of any mandatory charge to which section 3(m)(2)(E) of the Fair Labor Standards Act applies, the portion of such charge described in subclause (I)(bb) of such section shall be treated as tips for purposes of this subsection. . (b) Effective date The amendment made by this section shall apply to amounts received on or after the date of the enactment of this Act.