Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS

Commerce & Labor Committee

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.

Brief Description: Recodifying RCW 19.48.130 as a section in the minimum wage act.

Sponsors: Representatives Moeller and Conway.

Brief Summary of Bill
  • Moves section requiring disclosure of service charges from the hotels, lodging houses, and restaurants chapter to the Washington Minimum Wage Act.

Hearing Date: 1/24/08

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.

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..