WA HB1623

Employers must pay employees the full tip amount indicated on credit card slips without deducting any credit card processing fees or transaction costs

Issuers, payment card networks, acquirer banks, and processors are prohibited from charging merchants processing fees on the gratuity portion of electronic payment transactions when merchants transmit gratuity amount data during authorization or settlement

Payment card networks must create a mechanism within two years for merchants to transmit gratuity data separately from other transaction amounts

Violations result in a $1,000 civil penalty per transaction, plus required refund of processing fees charged on the gratuity amount; penalties deposited into the supplemental pension fund

Effective date is July 1, 2026, contingent on specific funding being provided in the omnibus appropriations act by June 30, 2025