Final Policy Guidance on Tips, Gratuities and Service Charges Issued by L&I

Final Policy Guidance on Tips, Gratuities and Service Charges  Issued by L&I https://wahospitality.org/wp-content/uploads/2019/03/shutterstock_1066051343.jpg

On Wednesday, March 6, 2019, the Washington State Department of Labor & Industries issued final policy guidance addressing employer requirements and employee rights on tips, gratuities and service charges. This guidance take into account our concerns and are similar to federal law that was adopted in last year’s federal omnibus appropriations act. This information also mirrors the guidance from our HERO manual. (win!)

During the rulemaking process for I-1433, the department committed to developing administrative policies which provide additional interpretive guidance to the requirements set forth in statute and rule. I-1433 created new requirements in the Washington Minimum Wage Act (RCW 49.46.020(3)) for employers to pay tips, gratuities, and service charges to employees.

In August and December of 2018, the department circulated draft versions of the administrative policy addressing tips and service charges, and requested feedback. After reviewing all feedback provided by stakeholders, the department updated and finalized the policy.

The updated version of the policy will also be available via the Workplace Rights/Employment Standards Administrative Policies web page.