Tips/Service Charges Draft Administrative Policy

Participation for Tips/Service Charges Draft Administrative Policy has concluded.

Overhead view of.fourteen people around a round table all using different electronic devices with the work "feedback" in the center of the table.

On November 8, 2016, Washington voters passed Initiative 1433. The initiative 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. Rules addressing the enforcement of these requirements (found in WAC 296-128-820) were finalized on December 19, 2017.

To help employers implement these requirements, and to help workers understand their rights, L&I wants your feedback on the draft administrative policy addressing tips and service charges (Español).

We are asking the public to review the draft administrative policy by September 17, 2018.

Feedback can be submitted directly to this page via the “Submit Comments” tab, or using an attached document via the “Upload Documents” tab.

Feedback can also be submitted via the ESRules@Lni.wa.gov email box. Feedback submitted to the email box will be uploaded to this engagement site.

On November 8, 2016, Washington voters passed Initiative 1433. The initiative 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. Rules addressing the enforcement of these requirements (found in WAC 296-128-820) were finalized on December 19, 2017.

To help employers implement these requirements, and to help workers understand their rights, L&I wants your feedback on the draft administrative policy addressing tips and service charges (Español).

We are asking the public to review the draft administrative policy by September 17, 2018.

Feedback can be submitted directly to this page via the “Submit Comments” tab, or using an attached document via the “Upload Documents” tab.

Feedback can also be submitted via the ESRules@Lni.wa.gov email box. Feedback submitted to the email box will be uploaded to this engagement site.

Guest Book

To submit your feedback directly to this page, please enter your comments in the text box below.
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(Submitted on 9/5/18 by Mary Jane Engh)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Charles Gould)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Elena Perez)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.
Thank you for the improvements that have been made to the Administrative Guidance draft in response to feedback prior to now. However, in addition to my concerns regarding workers' rights in higher min wage cities, I also advise that the guidance document clarify definitions of manager and supervisors prohibited from tip pools.

The U.S. Department of Labor's Field Assistance Bulletin No. 2018-3 dated April 6, 2018 offers clear guidance to all local jurisdictions on how tip pools should be regulated. In their definitions, they emphasize use of a duties test vs. simply exempt status of management:
"The Act prohibits managers and supervisors from participating in tip pools, however, as the Act equates such participation with the employer’s keeping the tips.3 As an enforcement policy, WHD will use the duties test at 29 C.F.R. § 541.100(a)(2)-(4) to determine whether an employee is a manager or supervisor for purposes of section 3(m)."

Therefore, even if a manager is not overtime exempt, but performs the job duties as laid out in the reference above, they are still prohibited from participating in a tip pool.

I recommend L&I reference the "duties test" as part of your response to the question on who may participate in a tip pool.

Thank you for your time and attention.

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Tim Vopalensky)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Frances Blair)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Stephanie Phillips)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Gene Lawson)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by James Reitz)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

Thank you for your consideration.

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Jason Weinstock)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Helga Burkhardt)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by David West)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Anne Hepfer)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Suzanne Ellis)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by John Simanton)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Bettina Bradley)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Summer Stevens)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Adam Sachs)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

I have recently left Seattle and now live in Puerto Rico. The difference in treatment toward restaurant employees here is stark, and Washington must continue to lead the way in legitimizing this profession by ensuring workers are treated fairly. Please promptly commit to enforcing this initiative.

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Petya Grozeva)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Linda Wasserman)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x

(Submitted on 9/5/18 by Hooker Hailstone)

Dear Director Joel Sacks,

To protect all Washington workers from tip and service charge theft, and to align with the state law voters approved under I-1433, I call upon the Department of Labor to revise the Tips/Service Charges Draft Policy as follows:

1) Clearly state that I-1433’s provision “Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.” is applicable to all Washington workers, including workers in cities with higher minimum wage laws like SeaTac, Seattle and Tacoma;

2) Clearly state that L&I has the power to enforce tip and service charge violations experienced by any Washington worker; and

3) Include examples of tip and service charge violations from the higher minimum wage cities of SeaTac, Seattle, and/or Tacoma, in order to best inform workers in these cities of their rights and ensure employers are in compliance.

As an appointed official, I trust that you will do right thing...

I-1433 Rules Team over 5 years ago
Cancel x