Bill > HB1623

This bill addresses credit card transaction processing fees on employee tips by prohibiting employers from deducting these fees from tips and mandating that employees receive the full amount of tips paid via credit card. The legislation adds new definitions and regulations around electronic payment transactions, specifically focusing on gratuities. It requires payment card networks to develop mechanisms within two years that allow merchants to transmit tip amount data separately from transaction processing to avoid being charged fees on those amounts. The bill establishes penalties for violations, including a $1,000 civil penalty per electronic transaction for entities that improperly handle tip data, with those penalties to be deposited into a supplemental pension fund. The legislation also includes provisions preventing entities from misusing or inappropriately sharing transaction data, treating such violations as consumer protection act infractions. The bill is set to take effect on July 1, 2026, but will become null and void if specific funding is not allocated by June 30, 2025. Notably, the bill continues Washington's ongoing efforts to protect worker wages by ensuring that tips are fully passed on to employees without deductions for processing costs.

Budget and Finance, Labor and Employment

https://app.leg.wa.gov/billsummary?BillNumber=1623&Year=2025&Initiative=false