HOUSE BILL REPORT
HB 2699
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Reported by House Committee On:
Commerce & Labor
Title: An act relating to recodifying RCW 19.48.130 as a section in the Washington minimum wage act.
Brief Description: Recodifying RCW 19.48.130 as a section in the minimum wage act.
Sponsors: Representatives Moeller and Conway.
Brief History:
Commerce & Labor: 1/24/08, 1/29/08 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON COMMERCE & LABOR
Majority Report: Do pass. Signed by 5 members: Representatives Conway, Chair; Wood, Vice Chair; Green, Moeller and Williams.
Minority Report: Do not pass. Signed by 2 members: Representatives Chandler, Assistant Ranking Minority Member; Crouse.
Staff: Brian Considine (786-7290).
Background:
Legislation enacted in 2007 requires businesses that provide food, beverage, entertainment, or
porterage to disclose the percentage of automatic service charges that are paid directly to
employees. The disclosure must be in itemized receipts and menus provided to the
customers. The disclosure requirement is codified in a chapter relating to hotels, lodging
houses, and restaurants.
The chapter relating to hotels, lodging houses, and restaurants does not include enforcement
provisions or civil or criminal penalties.
The Washington Minimum Wage Act (Act) includes provisions authorizing the Director of
the Department of Labor and Industries to conduct investigations necessary to determine
whether the Act has been violated. An employer who violates the Act or who retaliates
against an employee for filing a complaint of a violation is guilty of a gross misdemeanor.
Summary of Bill:
The disclosure requirement relating to service charges in the hotels, lodging houses, and
restaurants statute is moved to the Act.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) When HB 1583 was enacted after last session, the language went into the wrong
section of the code. The intent is to move the service charge regulation to an agency that can
enforce the law. Right now there is no enforcement for this bill, and putting the language in
the Minimum Wage Act allows for enforcement. The requirement of reporting service
charges on menus is spotty at best, and making the change allows The Department of Labor
and Industries to follow-up and enforce this law.
(Opposed) None.
Persons Testifying: Representative Moeller, prime sponsor; and Jeff Johnson, Washington State Labor Council.