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Workers and employers split on bill banning credit‑card processing fees from tips
Summary
House Bill 16 23 would prohibit employers from deducting any portion of employee tips or gratuities to cover credit‑card processing fees. Restaurant and hospitality groups warned of transfer of costs to businesses and potential closures; labor and hospitality‑worker unions said the measure protects low‑paid tipped workers and urged passage.
House Bill 16 23 would bar employers from deducting any portion of an employee’s tips, gratuities or service charges to cover credit‑card processing fees. Staff briefed members that under current law employers may deduct a proportional share of processing costs from pooled tips, and the bill would make that practice illegal.
The Department of Labor & Industries (L&I) fiscal note estimated administrative costs tied to increased complaint volume, case processing and…
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