OLYMPIA — Legislation to protect workers’ tipped wages was heard in the Senate Labor & Commerce Committee Friday.
Senate Bill 5070, sponsored by Sen. Rebecca Saldaña (D-Seattle), aims to protect workers’ tips while reducing financial burdens on employers by prohibiting certain interchange fees on gratuities and sales taxes.
“Our service industry workers and small businesses are the backbone of Washington’s economy,” Saldaña said. “This bill ensures fairness by protecting workers’ hard-earned tips and reducing unnecessary costs for small businesses, allowing both to thrive.”
The bill addresses a significant issue in the restaurant, hospitality, and service industries, where employers are often charged interchange fees on the entirety of a customer’s transaction, including sales taxes and tips. Under current Washington law, employers can deduct a prorated portion of these fees from employees’ tips, causing financial losses for tipped workers.
Other states have already enacted similar measures, indicating growing national momentum to tackle this issue. By adopting this bill, Washington will continue to lead in worker protections and equitable business practices.
Find more information on this bill and follow its progress here.
