SENATE BILL REPORT

SB 6590

BYSenators West, Lee and Johnson

Changing provisions relating to minimum wage laws.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 22, 1990

Senate Staff:Jonathan Seib (786-7427)

AS OF JANUARY 22, 1990

BACKGROUND:

RCW 49.46 requires Washington employers, with some exceptions, to pay their employees a stated minimum wage.  RCW 49.48 prohibits the withholding or diversion of wages except in limited situations.  Violation of either of these statutes is a criminal act.  Neither statute, however, provides for civil penalties.

RCW 49.46 defines "wage" to mean "compensation due to an employee by reason of employment."  There are no provisions to allow tips to be credited towards meeting the minimum wage requirements.

RCW 49.46 was last amended by Initiative 518, passed in November, 1988.  The initiative raised the minimum wage to $4.25 as of January 1, 1990, and changed the law's exemption provisions.

SUMMARY:

Upon finding that an employer has violated either RCW 49.46 or RCW 49.48, the Department of Labor and Industries may impose civil penalties of up to $1,000 a day for each day a violation occurs and interest of up to 1 1/2 percent per month for wages owed.

Notice and appeal procedures are provided.

Employers of persons who receive tips are permitted to count tips towards meeting up to 20 percent of the applicable minimum wage.  This applies only to employees customarily receiving more than $100 per month in tips who are allowed to retain all tips received and have been informed that those tips are being credited towards the minimum wage.

Appropriation:  none

Revenue:   none

Fiscal Note:    requested