FINAL BILL REPORT

SB 6354

FULL VETO

BYSenators Lee, Smitherman and McMullen; by request of Department of Labor and Industries

Changing the definition of wages for industrial insurance purposes.

Senate Committee on Economic Development & Labor

House Committe on Commerce & Labor

AS PASSED LEGISLATURE

BACKGROUND:

Tips and gratuities are not included in the definition of wages for industrial insurance purposes.  This means that benefits for temporary total disability (time loss) are calculated by excluding tips and gratuities.  This significantly deflates the benefit received by injured workers who normally receive a substantial part of their compensation as tips and gratuities.

Conversely, tips must be reported by workers as income for federal income tax purposes. 

SUMMARY:

The definition of wages for workers' compensation purposes, including the computation of benefits, is amended to include tips to the extent they are reported for federal income tax purposes.

VOTES ON FINAL PASSAGE:

      Senate    49     0

      House 96   0

FULL VETO:  (See VETO MESSAGE)