This bill aims to prohibit employers from deducting credit card transaction processing fees from employee tips, ensuring that employees receive the full amount of gratuities indicated by customers on credit card slips. It amends RCW 49.46.020 to establish a minimum wage structure that increases annually, starting from $11 per hour in 2017 to $13.50 per hour in 2021, with subsequent adjustments based on inflation. The bill also introduces new definitions related to electronic payment transactions and outlines the responsibilities of merchants and payment processors regarding gratuity amounts.

Additionally, the bill establishes penalties for violations of these provisions, including a civil penalty of $1,000 per transaction for payment card networks that fail to comply with the new rules. It mandates that payment card networks provide a mechanism for merchants to transmit gratuity data as part of the payment process within two years of the bill's effective date. The act is set to take effect on July 1, 2026, unless specific funding is not provided by June 30, 2025, in which case it will be null and void.

Statutes affected:
Original Bill: 49.46.020
Substitute Bill: 49.46.020