Tips/credit card fees

AN ACT Relating to prohibiting deductions for credit card 1
transaction processing fees from employee tips; and amending RCW 2
49.46.020. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 49.46.020 and 2019 c 236 s 2 are each amended to 5
read as follows: 6
(1)(a) Beginning January 1, 2017, and until January 1, 2018, 7
every employer shall pay to each of his or her employees who has 8
reached the age of ((eighteen)) 18 years wages at a rate of not less 9
than ((eleven dollars)) $11 per hour. 10
(b) Beginning January 1, 2018, and until January 1, 2019, every 11
employer shall pay to each of his or her employees who has reached 12
the age of ((eighteen)) 18 years wages at a rate of not less than 13
((eleven dollars and fifty cents)) $11.50 per hour.14
(c) Beginning January 1, 2019, and until January 1, 2020, every 15
employer shall pay to each of his or her employees who has reached 16
the age of ((eighteen)) 18 years wages at a rate of not less than 17
((twelve dollars)) $12 per hour. 18
(d) Beginning January 1, 2020, and until January 1, 2021, every 19
employer shall pay to each of his or her employees who has reached 20
H-0803.1
HOUSE BILL 1623
State of Washington 69th Legislature 2025 Regular Session
By Representatives Obras, Fosse, Ortiz-Self, Parshley, Goodman,
Macri, Donaghy, Hill, Stonier, Taylor, Berry, Santos, Peterson,
Ramel, Gregerson, Reed, Farivar, Reeves, Bergquist, Kloba, Duerr,
Ryu, Simmons, Cortes, Thomas, Street, Davis, and Salahuddin
Read first time 01/27/25. Referred to Committee on Labor & Workplace
Standards.
p. 1 HB 1623
the age of ((eighteen)) 18 years wages at a rate of not less than 1
((thirteen dollars and fifty cents)) $13.50 per hour.2
(2)(a) Beginning on January 1, 2021, and each following January 3
1st as set forth under (b) of this subsection, every employer shall 4
pay to each of his or her employees who has reached the age of 5
((eighteen)) 18 years wages at a rate of not less than the amount 6
established under (b) of this subsection. 7
(b) On September 30, 2020, and on each following September 30th, 8
the department of labor and industries shall calculate an adjusted 9
minimum wage rate to maintain employee purchasing power by increasing 10
the current year's minimum wage rate by the rate of inflation. The 11
adjusted minimum wage rate shall be calculated to the nearest cent 12
using the consumer price index for urban wage earners and clerical 13
workers, CPI-W, or a successor index, for the ((twelve)) 12 months 14
prior to each September 1st as calculated by the United States 15
department of labor. Each adjusted minimum wage rate calculated under 16
this subsection (2)(b) takes effect on the following January 1st.17
(3) An employer must pay to its employees: (a) All tips and 18
gratuities; and (b) all service charges as defined under RCW 19
49.46.160 except those that, pursuant to RCW 49.46.160, are itemized 20
as not being payable to the employee or employees servicing the 21
customer. Tips and service charges paid to an employee are in 22
addition to, and may not count towards, the employee's hourly minimum 23
wage. An employer that permits customers to pay tips or gratuities by 24
credit card shall pay the employees the full amount of the tip or 25
gratuity that the customer indicated on the credit card slip, without 26
any deductions for any credit card payment processing fees or 27
transaction costs that may be charged to the employer by the credit 28
card company.29
(4) Beginning January 1, 2018, except as provided in RCW 30
49.46.180, every employer must provide to each of its employees paid 31
sick leave as provided in RCW 49.46.200 and 49.46.210.32
(5) The director shall by regulation establish the minimum wage 33
for employees under the age of ((eighteen)) 18 years.34
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p. 2 HB 1623