| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Commerce & Labor Committee | |
HB 1583
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.
Brief Description: Requiring disclosure to customers of the percentage of automatic service charges paid to servers.
Sponsors: Representatives Moeller, Conway, Darneille, Wood, Green, Ormsby and Morrell.
Brief Summary of Bill |
|
Hearing Date: 2/22/07
Staff: Jill Reinmuth (786-7134).
Background:
Neither federal nor state law requires businesses that impose automatic service charges to
disclose the percentage of such charges that are paid to employees.
Summary of Bill:
Employers that provide food, beverages, entertainment or porterage must disclose the percentage
of automatic service charges that are paid directly to the employees serving the customers. The
disclosures must be in itemized receipts and menus provided to the customers. The service
charges are separately designated amounts collected from customers that are for services
provided by employees or are described in such a way that customers might reasonably believe
that the amounts are for services provided by employees. The service charges are in addition to
hourly wages paid to employees. Examples include charges designated as service charges,
gratuities, delivery charges, and porterage charges.
Rules Authority: The bill does not address the rule-making powers of an agency.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.