H-1432.1 _______________________________________________
HOUSE BILL 1935
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State of Washington 57th Legislature 2001 Regular Session
By Representatives Hurst, Conway, Wood, McDermott, Cooper, Keiser and Santos
Read first time 02/08/2001. Referred to Committee on Commerce & Labor.
AN ACT Relating to requiring the distribution of tips to employees; adding a new section to chapter 49.46 RCW; adding a new section to chapter 82.04 RCW; and adding a new section to chapter 82.08 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 49.46 RCW to read as follows:
(1)(a) For the purposes of this section, "tip" means:
(i) A sum presented voluntarily by a customer to an employee as a gift or gratuity in recognition of service performed for the customer; or
(ii) A sum paid by a customer to a seller that is a mandatory addition to the selling price, whether labeled a service charge, a tip, a gratuity, or otherwise, for service performed for the customer.
(b) "Tip" includes:
(i) A sum presented or paid in legal tender of the United States or by check on a bank convertible into cash on demand at full face value; or
(ii) A sum transferred by the seller to an employee at the direction of credit customers who designate amounts to be added to their bills as tips.
(2) When a customer pays a tip to a seller, the seller must distribute the tip to employees as follows:
(a) Through a tip pooling arrangement mutually agreed upon by the employees;
(b) If a tip pooling arrangement does not exist, then to the employee or employees who performed the service; or
(c) If the employee or employees who performed the service are not readily identifiable, then to the employees who worked on the day the customer paid the tip.
(3) A tip may not be used, in whole or in part, to satisfy the monetary requirements of RCW 49.46.020.
NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:
This chapter does not apply to amounts paid or received as tips as defined in section 1 of this act.
NEW SECTION. Sec. 3. A new section is added to chapter 82.08 RCW to read as follows:
The tax levied by RCW 82.08.020 does not apply to amounts paid or received as tips as defined in section 1 of this act.
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