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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: December 16, 2016 02:09 PM
From: Representative Thomas P. Murt
To: All House members
Subject: Prohibiting Credit Card Transaction Fee Deduction from Tips
I plan to reintroduce legislation from last session (HB604) amending the Wage Payment and Collection Law prohibiting employers from deducting credit card transaction fees from the tips earned by their employees.

It is common practice to charge business owners 3-4% transaction fee per transaction. Apparently, some employers pass this fee onto servers by taking the fee out of the tip left on the credit card slip.

This practice is unfair to tipped employees as their base pay is usually under $3.00 per hour. My legislation would prohibit employers from reducing the gratuity by the transaction fee.

Introduced as HB751