AN ACT Relating to the state minimum wage; amending RCW 49.46.020; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 2, chapter 294, Laws of 1959 as last amended by section 2, chapter 289, Laws of 1975 1st ex. sess. and RCW 49.46.020 are each amended to read as follows:

(1) Except as otherwise provided under this chapter, every employer shall pay to each of his or her employees who have reached the age of eighteen years wages at a rate of not less than ((one dollar and sixty cents per hour except as may be otherwise provided under subsections (2) through (7) of this section or as otherwise provided under this chapter: PROVIDED, That beginning the calendar year 1974, the applicable rate under this section shall be one dollar and eighty cents per hour, and beginning with September 1, 1975 the applicable rate under this section shall be two dollars and ten cents an hour, and beginning the calendar year 1976 the applicable rate under this section shall be)) two dollars and thirty cents an hour, except beginning on January 1, 1988, the applicable rate under this section shall be the minimum wage established under subsection (2) of this section.

(2) Beginning January 1, 1988, the state minimum wage shall be the amount calculated by the department of labor and industries as follows: The annual dollar figure for the overall weighted average poverty threshold for a family unit consisting of a parent and two children, published in 1986 by the bureau of the census, United States department of commerce as $8534.00, multiplied by ninety percent and divided by 1936 hours. The department shall calculate the initial minimum wage by July 1, 1987, and take such steps as are necessary to notify employers and employees under this chapter of the new minimum wage. Thereafter, in December of every third calendar year, the department of labor and industries shall recalculate by the same method a new figure to recommend to the legislature for adoption as the new state minimum wage, using the annual dollar figure for the overall weighted average poverty threshold for a family unit consisting of a parent and two children most recently published by the bureau of the census, United States department of commerce. The department shall take such steps as are necessary after a change in the state minimum wage to notify employers and employees under this chapter of the current minimum wage established under this section.

(((2) Any individual eighteen years of age or older, unless exempt under the provisions of section 1(5)(k)(8) of this 1975 amendatory act, employed by the state, any county, city, town, municipal corporation or quasi municipal corporation, political subdivision, or any instrumentality thereof shall be paid wages beginning with September 1, 1975, at a rate of not less than two dollars an hour, and beginning the calendar year 1976 at a rate of not less than two dollars and twenty cents an hour, and beginning the calendar year 1977 at a rate of not less than two dollars and thirty cents an hour.

(3) Any individual eighteen years of age or older engaged in performing services in a nursing home licensed pursuant to chapter 18.51 RCW, shall be paid wages beginning with September 1, 1975, at a rate of not less than two dollars and ten cents an hour, and beginning the calendar year 1976, at a rate of not less than two dollars and twenty cents an hour, and beginning the calendar year 1977, at a rate of not less than two dollars and thirty cents an hour.

(4) Any individual eighteen years of age or older engaged in performing services in a hospital licensed pursuant to chapter 70.41 RCW, or chapter 71.12 RCW, shall be paid wages beginning with September 1, 1975, at a rate of not less than two dollars and ten cents an hour, and beginning the calendar year 1976, at a rate of not less than two dollars and twenty cents an hour, and beginning the calendar year 1977 at a rate of not less than two dollars and thirty cents an hour.

(5) Any individual eighteen years of age or older employed in a retail or service establishment and who is so employed primarily in connection with the preparation or offering of food or beverages for human consumption, either on the premises, or by such services as catering, banquet, box lunch, or curb or counter service, to the public, to employees, or to members or guests of members of clubs shall be paid wages beginning with September 1, 1975, at a rate of not less than two dollars an hour, and beginning the calendar year 1976, at a rate of not less than two dollars and twenty cents an hour, and beginning the calendar year 1977, at a rate of not less than two dollars and thirty cents an hour.))

(3) For the purposes of this section, to determine the minimum wage of a tipped employee the amount paid such employee by his or her employer shall be deemed to be increased by the amount of tips reported to the employer by the employee for federal income tax purposes, or the amount allocated as such by the employer in lieu of the tipped employee so reporting tips, except:

(a) The amount of increase for tips shall not exceed forty percent of the applicable minimum wage rate; and

(b) The amount of increase for tips determined by the employer, in lieu of the employee reporting tips, shall not exceed the value of tips actually received by the employee.

!ixAn employee shall not be deemed a tipped employee unless such employee customarily receives more than twenty dollars per month in tips.

(4) For the purposes of this section, the minimum wage paid to any employee shall also include the reasonable cost, as determined by the department of revenue for taxing purposes, to the employer of furnishing such employee with meals.

NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.