House bill would stop businesses from taking card‑processing fees out of workers' tips; committee advances bill

House Bill 22, presented to the Senate Health and Public Affairs Committee by a House sponsor, would prohibit an employer or establishment from programming card‑payment terminals to deduct card‑processing fees from employees' tips. Committee members voted to advance the bill with a due‑pass recommendation by a roll call of 7 in favor and 0 opposed, with 3 excused.

The bill addresses a business practice some witnesses described as opaque: at certain establishments the point‑of‑sale terminal is programmed so that when a customer pays by card the merchant absorbs processing fees by reducing or diverting part of the tip that would otherwise go to the server. The sponsor told the committee the measure would protect tipped workers by ensuring they keep the full amount customers leave for them in tips when those tips are intended for workers.

Committee members asked practical questions about enforcement and technical implementation. Senator Pinto and others asked how the state would detect terminals programmed to deduct fees and how the law would be enforced; the presenter said the bill's enforcement would rely on state review of mechanisms and machines and that the sponsor's expert (not present at this hearing) had previously testified about the technical means to prevent programming that diverts tips.

The restaurant industry representative indicated support for the bill. The sponsor and committee noted a possible consumer‑notice amendment (for example, signage advising customers of a card surcharge) might be considered later; for now the measure narrowly forbids programming terminals to divert tipped amounts.

A do‑pass motion carried with a recorded committee vote of 7–0 and 3 excused; the bill moves to its next committee of reference.