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. It amends RCW 49.46.020 to establish a minimum wage structure, adjusting the minimum wage for employees aged 18 and older over several years, with specific amounts set for each year. The bill also introduces new definitions related to electronic payment transactions, including terms like "acquirer bank," "credit card," and "processing fee."

Additionally, the bill outlines the responsibilities of payment card networks and processors regarding the handling of gratuity amounts in electronic transactions. It mandates that if a merchant provides the gratuity amount during the transaction process, no processing fees should be charged on that amount. Violations of this provision could result in civil penalties of $1,000 per transaction, with penalties directed to the Department of Labor and Industries. 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 would become null and void.

Statutes affected:
Original Bill: 49.46.020
Substitute Bill: 49.46.020