; and (ii) in subsection (c), by striking the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employer and inserting the sum of all such tips unlawfully used or kept by the employer . (3) Delayed effective date (A) In general Except as provided in subparagraph (B), the amendments made by paragraphs (1) and (2) shall take effect with the beginning of the first 1-year period described in 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m)(2)(A)(i) ), as amended by subsection (b), for which the hourly wage for such 1-year period would equal or exceed the minimum wage in effect under section 6(a)(1) as of the beginning of such 1-year period. (B) Special rule for tip pools established or maintained during transition period In any case in which a system to pool tips is established for the non-supervisory employees of an employer in accordance with section 3(m)(2)(D) of such Act ( 29 U.S.C. 203(m)(2)(D) ) (as added by section 3(d) of this Act) prior to the beginning of the 1-year period described in subparagraph (A), the amendments made by paragraphs (1) and (2) shall apply with respect to such employer beginning with the date on which such system is established. (b) Minimum wage for tipped employees during transition period (1) In general Clause (i) of section 3(m)(2)(B) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m)(2)(A) ), as so redesignated by section 3(a) of this Act, is amended to read as follows: (i) the cash wage paid such employee, which for purposes of such determination shall be not less than— (I) for the 1-year period beginning on the date of enactment of the Tipped Worker Protection Act , $3.60 an hour; (II) for each succeeding 1-year period, an hourly wage equal to the amount determined under this clause for the preceding 1-year period increased by $1.50 (but not to exceed the minimum wage in effect under section 6(a)(1) as of the beginning of such 1-year period)