State Sets New Policy on Tips, Gratuities, and Service Charges

As Washington Hospitality Association points out, “Service charges can be complicated. You may hear them referred to as service fees, booking fees, or customer service fees. And once you have decided what to call them, they don’t always get easier to understand. Washington state’s rules regarding tips and service charges can be hard to navigate and federal rules add another layer of complexity to the requirements for employers.”

As of September 7, the Washington State Department of Labor & Industries released a new administrative policy on employer requirements and employee rights on tips, gratuities and service charges. The requirements are part of labor regulations under RCW 49.46.

The new policy provides examples of various scenarios explaining tip pools, joint employers, training periods, and more. For more information or language access services, send an email to the Employment Standards Program.

If you have any further questions about this topic or others, see the Department of Labor & Industries’ Help for Small Business. A comprehensive list of policies and updates is also posted to the Workplace Rights/Administrative Policies LNI web page.

Restaurants and lodging industry members may also want to read the Washington Hospitality Association article on service charges or view their service charge toolkit and tip pooling toolkit.