Part of Ferry's 51-state tip laws guide

Washington tip laws (2026)

Washington has no tip credit. Every worker gets the full $17.13 state minimum before tips in 2026, rising to $17.73 on January 1, 2027, and eight cities and counties set higher rates. Service charges have their own rule: restaurants must disclose the employee share, or the whole charge goes to staff.

Researched by Ferry's tip operations research teamReviewed How we research these pages
Rates as of Last reviewed

Washington at a glance

No tip credit

Washington: $17.13 an hour minimum wage and no tip credit, so tipped staff get the full $17.13 before tips.

Next change: $17.73 on . General statewide minimum, age 16 and older[6]
Washington tip and wage rates at a glance, as of Nov 3, 2026
State minimum wage$17.13/hrStatewide from .[1][2]
Tipped cash wage$17.13Full minimum wage. Tips go on top.[1][2]
Max tip creditNoneTips can't count toward wages.[1][2]
Tip poolingAllowedMandatory pools allowed.[2]
Card-fee deductionPro rata onlyOnly the tip's share of the fee.[3]
Card tip payoutEmployer-held tips and staff service charges are due no later than wages for the same period.No waiting on card reimbursement.[2][4]
Local minimum wages8 placesLocal rates on file. See all[5]

Rates verified against the Washington Department of Labor and Industries, Employment Standards on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)

02The yes/no sheet

Can you do this in Washington?

In Washington you can't take a tip credit, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.

Yes state law allows itNo state law says noDepends read the conditionFederal rule no state rule, federal applies
What restaurant operators can and can't do with tips in Washington
NumberCan you…AnswerThe condition
01Take a tip credit against minimum wage?NoPay the full $17.13 an hour before tips.[1][2]
02Make staff join a tip pool?YesAllowed, as long as only eligible staff share.[2]
03Include bartenders, bussers, runners and hosts?YesAll four can share.[2][4]
04Include cooks and dishwashers?YesCooks, dishwashers and other kitchen staff can join mandatory pools, as long as they get the full minimum wage separately. No managers or owners.[2]
05Give managers or supervisors a share?NoState rules exclude salaried-exempt managers. Federal law may bar more supervisors, based on duties. Tips for their own direct service are separate.[2][4]
06Let an owner keep any of the tips?NoOwners can't take workers' pooled tips. They keep only tips for service they alone provide.[2][4]
07Pick your own split (hours, points or percentages)?DependsNo fixed percentage. Contributions can't exceed tips actually received. SeaTac hospitality adds an equitable split among service workers.[2]
08Take card processing fees out of tips?Pro rataOnly the actual prorated card fee on the tip or the staff service-charge share. No other business costs.[3][2]
09Hold card tips until payday?DeadlineEmployer-held tips and staff service charges are due no later than wages for the same period. No waiting on card reimbursement.[2][4]
10Cover walkouts, breakage or register shortages from tips?NoNot from tips.[2][3][4]
11Keep a mandatory service charge for the house?DependsOnly if you clearly tell guests it doesn't go to staff.[2] Some cities have their own rules.
12Pay tips on a payroll card?DependsAllowed. Offer another way to get paid too.[7][8]

03State vs federal

Washington vs federal law

Washington sets a stricter rule than federal law on 4 of the 10 rules below, starting with a $17.13 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.

Washington tip rules compared with federal rules (FLSA)
RuleFederal (FLSA)WashingtonComparison
Minimum wageStricterFederal$7.25[4]Washington$17.13[1][2]Stricter
Tipped cash wageStricterFederal$2.13[4]Washington$17.13 (full minimum wage)[1][2]Stricter
Max tip creditStricterFederal$5.12[4]WashingtonNoneStricter
Who counts as tippedNot applicableFederalMore than $30 a month in tips, customarily and regularly received in the occupation.[4]WashingtonNot applicable: Washington has no tip credit.Not applicable
Managers in the poolState ruleFederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[4]WashingtonState rules exclude salaried-exempt managers. Federal law may bar more supervisors, based on duties. Tips for their own direct service are separate.[2][4]State rule
Kitchen in the poolState ruleFederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[4]WashingtonCooks, dishwashers and other kitchen staff can join mandatory pools, as long as they get the full minimum wage separately. No managers or owners.[2]State rule
Card fees from tipsSame as federalFederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[4]WashingtonTip's share of the fee only[3]Same as federal
Card tip payoutState ruleFederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[4]WashingtonEmployer-held tips and staff service charges are due no later than wages for the same period. No waiting on card reimbursement.[2][4]State rule
Mandatory service chargesStricterFederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[4]WashingtonStaff's money unless you tell guests otherwise[2]Stricter
Overtime for tipped staffState ruleFederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[4]WashingtonMost hourly workers get 1.5 times the regular rate after 40 hours. State guidance leaves out tips and service charges; federal rules count paid-out charges.[9][4]State rule

Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Washington fits among the four tip credit classes.

04Wages

Minimum wage and the tip credit in Washington

Washington doesn't allow a tip credit. Tipped staff earn the full $17.13 an hour from the employer, and every tip lands on top.[1][2]

Worked example

One server, one 30-hour week in Washington

Wage: 30 hours × $17.13$513.90
Tips for the week+ $600.00
Their week$1,113.90
Wage you payTips, all theirs

No tip credit means tips never reduce what you pay. A slow night doesn't change the wage line. Fictional worker and tips.

Tip credit conditions
Not applicable: Washington has no tip credit.
Who counts as tipped
Not applicable: Washington has no tip credit.
Overtime
Most hourly workers get 1.5 times the regular rate after 40 hours. State guidance leaves out tips and service charges; federal rules count paid-out charges.[9][4]
Side work and dual jobs
Not applicable: Washington has no tip credit.

Other rates

Other minimum wage rates in Washington
RateHourly
Local industry SeaTac: Hotel restaurants and barsNon-manager staff in hotels with 100+ rooms and 30+ workers, including connected restaurants and bars. Some institutional foodservice is covered separately. Since .[10][11]$20.74
Youth or training Ages 14 to 15, state rate85% of the adult state minimum. Local ordinances can require the full local rate.[1]$14.56

Scheduled increases

  1. Now, since $17.13

05Local rates

City and county minimum wages in Washington

8 cities and counties in Washington set their own minimum wage, from $18.32 in King County to $21.78 in Burien. A restaurant inside one of them pays the local rate, not the $17.13 state rate.[5]

Local rates allowedSorted highest first. Bars start near the state rate, marked with a line.
Local minimum wages in Washington, 15 rows, sorted highest first
City or countyRatevs state $17.13Tipped cash wageEffective
BurienLarge: 501 or more employeesFranchises are counted together. Current city code is BMC 5.16; $5.15 was repealed.[12]$21.78+$4.65 over state$21.78Next change $22.49 on
TukwilaCovered: 15+ employees worldwide, over $2 million local revenue, or a covered franchise networkFranchise networks of 500 or more are covered. Applies at all ages, including temporary, seasonal and part-time work.[13]$21.65+$4.52 over state$21.65Next change $22.45 on
RentonLarge: over 500 employees, and certain franchisesCoverage counts employees worldwide and includes certain franchises.[14]$21.57+$4.44 over state$21.57Next change $22.28 on
RentonMidsize: 15 to 500 employees, or over $2 million local annual revenueThis rate took effect July 1, 2026. Smaller employers that are otherwise exempt use the state minimum.[10][14]$21.57+$4.44 over state$21.57Next change $22.28 on
SeattleAll employer sizesOne rate for every employer size since 2025. Tips and medical benefits can't offset it.[15]$21.30+$4.17 over state$21.30Next change $22.14 on
King CountyUnincorporated areas, 500 or more employeesUnincorporated areas only. Employee counts and revenue are measured worldwide.[16]$20.82+$3.69 over state$20.82Next change $21.57 on
BurienMedium: 16 to 500 employeesIn 2027 the medium rate matches the large rate. Franchises are counted together.[12]$20.78+$3.65 over state$20.78Next change $22.49 on
EverettLarge: 500 or more employees, including commonly controlled franchises[17]$20.77+$3.64 over state$20.77Next change $21.52 on
SeaTacQualified hospitality onlyHotel restaurants and bars in hotels with 100+ rooms and 30+ workers, plus some institutional foodservice. Ordinary standalone restaurants aren't covered.[10][11]$20.74+$3.61 over state$20.74Next change
King CountyUnincorporated areas, 15 or fewer, revenue $2 million or moreUnincorporated areas only. A temporary discount ends in 2027.[16]$19.82+$2.69 over state$19.82Next change $21.57 on
King CountyUnincorporated areas, 16 to 499 employeesUnincorporated areas only. A temporary discount ends in 2027.[16]$19.82+$2.69 over state$19.82Next change $21.57 on
EverettOther covered: 15 to 499 employees, or over $2 million local annual revenueNext step: $21.52 on July 1, 2027. Smaller employers that are otherwise exempt use the state minimum.[17]$19.77+$2.64 over state$19.77Next change $20.52 on
BurienSmall: 15 or fewer employees[12]$19.28+$2.15 over state$19.28Next change $20.49 on
BellinghamAll covered employeesSet at the state minimum plus $2. The city's official 2027 figure isn't listed here.[18]$19.13+$2.00 over state$19.13Next change
King CountyUnincorporated areas, 15 or fewer, revenue under $2 millionUnincorporated areas only.[16]$18.32+$1.19 over state$18.32Next change $19.57 on

One local hotel or industry ordinance sets a higher rate for covered workers. It is listed under Other rates.

Local service charge rules are in the service charges section.

SeaTac

SeaTac's $20.74 rate is for hotels, not every restaurant

SeaTac's ordinance covers hospitality and institutional foodservice employers that meet size tests. Ordinary standalone restaurants use the state rules.[11][10]

  • 01

    Who's covered

    Non-manager staff at hotels with 100+ rooms and 30+ workers, including connected restaurants and bars, plus qualifying institutional foodservice.[11]

  • 02

    Who isn't

    Ordinary standalone restaurants outside those facilities.[11]

  • 03

    Service charges

    Split equitably among non-manager service workers. Banquet charges go to banquet staff, room service charges to delivery staff.[11]

06Tip pool

Who can be in the tip pool in Washington

Washington allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.

Who can share in a tip pool in Washington, by role
RoleCan share?Condition
Front of house
ServerAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
BartenderAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
BusserAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
Food runnerAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
HostAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
BarbackAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
ExpoAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
Back of house
CookAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
DishwasherAllowedNon-exempt, non-manager workers, paid the full minimum separately. SeaTac hospitality rules can narrow the pool.[2][4]
Leadership
Shift leadDependsAn hourly lead can join unless real management duties make them a manager under federal law. Exempt managers stay out.[2][4]
Manager or supervisorNot allowedFederal law bars them from taking workers' pooled tips.[4][2]
OwnerNot allowedFederal law bars them from taking workers' pooled tips.[4][2]
Managers and supervisors
State rules exclude salaried-exempt managers. Federal law may bar more supervisors, based on duties. Tips for their own direct service are separate.[2][4]
Owners
Owners can't take workers' pooled tips. They keep only tips for service they alone provide.[2][4]
Back of house
Cooks, dishwashers and other kitchen staff can join mandatory pools, as long as they get the full minimum wage separately. No managers or owners.[2]
Who sets the percentages
The employer can set the pool and shares; a written policy is recommended. Workers can't pay in more than they got in tips.[2]
Cap on what a pool can take
No fixed percentage. Contributions can't exceed tips actually received. SeaTac hospitality adds an equitable split among service workers.[2]
Pooling allowed
Yes.[2]

07Put it to work

Setting up a tip pool in Washington

Under Washington rules, 9 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.

The law decides who's in. You still have to run the split every shift and pay it out. That part is a math and payout job, and it's the same job whether you have one location or forty.
Saturday dinner pool$1,200.00
9 of 10 staff can share in Washington
By %
By points
By hours
Servers 55%Bar 12%Support 15%Kitchen 18%
The same $1,200.00 pool split three ways, using roles that can share in Washington
WhoBy %By pointsBy hours
MayaServer, 6 h, 10 pts$220.00$203.39$133.34
JordanServer, 6 h, 10 pts$220.00$203.39$133.33
PriyaServer, 6 h, 10 pts$220.00$203.39$133.33
SamBartender, 6 h, 8 pts$144.00$162.71$133.33
LuisBusser, 5 h, 5 pts$90.00$101.69$111.11
AvaFood runner, 5 h, 5 pts$90.00$101.69$111.11
TheoCook, 7 h, 4 pts$72.00$81.36$155.56
KimCook, 7 h, 4 pts$72.00$81.36$155.56
RafaDishwasher, 6 h, 3 pts$72.00$61.02$133.33
DanaManager or supervisor, 2 h (ran food)Not in the pool. Federal law bars them from taking workers' pooled tips.
Total$1,200.00$1,200.00$1,200.00

Fictional restaurant and staff. Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.

Support Pool contributors: Server $262.83 and Bartender $54.92, for a total of $317.75. Support Pool receivers, pooled by Day and distributed by Hours Worked: Jonah Kim, Busser, 6.50 hours, +$179.56. Sofia Nunez, Food Runner, 5.00 hours, +$138.19. Total 11.50 hours and $317.75.

Support pool split. Servers and bartenders pay into the support pool, split by hours worked.
Ferry Tip Manager

Ferry Tip Manager: support pool split by hours

Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.

Who it's for Full-service restaurants that tip out bussers, runners and bar backs

Book a demoSee Tip Manager
Run your own numbersPlug your staff and tips into the tip pooling calculator

08Service charges

Service charges vs tips in Washington

In Washington a mandatory service charge is presumed to belong to staff unless the business clearly tells guests otherwise.

Tips compared with service charges in Washington
QuestionOptionalTipMandatoryService charge
Who sets the amountThe guestThe business
Who it belongs toThe worker it was left for, or the poolStaff, unless the business clearly tells guests otherwise.[2]
Can it go to staff?Yes, through the poolYes. Amounts paid to staff are wages, not tips.[4]
How it's taxed (federal)Tip income the worker reportsRegular wages, with payroll taxes[20][21]
Guest noticeNone neededState the exact percentage staff get, clearly, on receipts and menus. An undisclosed employer share goes to staff. SeaTac hospitality must split equitably.[19][3]
  1. Step 1Did the guest choose whether to pay it, and how much?
    YesIt's a tip. It belongs to staff.
    NoIt's a mandatory charge. Go to step 2.
  2. Step 2What does Washington say?Staff own it unless disclosedStaff, unless the business clearly tells guests otherwise.[2]
  3. Step 3Check the citySeaTac: Covered hospitality tips and service charges go equitably to non-manager service workers. Banquet charges go to banquet staff, room service to delivery staff.[11]
Menu and receipt notice
State the exact percentage staff get, clearly, on receipts and menus. An undisclosed employer share goes to staff. SeaTac hospitality must split equitably.[19][3]
Large-party auto gratuities
An automatic gratuity is a service charge and follows the disclosure rules. The staff share is paid on top of the minimum wage.[2]

Local service charge rules

  • SeaTac. Covered hospitality tips and service charges go equitably to non-manager service workers. Banquet charges go to banquet staff, room service to delivery staff.[11]

More on the difference: service charge vs tip.

Service charges

Disclose the staff share, or staff get it all

Washington's service charge law covers restaurants, bars and hotels. A charge without a clear employee share goes entirely to the service staff.[2][19][3]

  • Show the exact percentage employees get on the itemized receipt
  • Show it on every menu too
  • Pay the staff share on top of the minimum wage, never in place of it

09Card tips

Card tips in Washington: fees and payout timing

In Washington only the tip's share of the card processing fee can come out of a card tip. Payout deadline: employer-held tips and staff service charges are due no later than wages for the same period. No waiting on card reimbursement.

Card processing fees
Pro rataOnly the tip's share.

Only the actual prorated card fee on the tip or the staff service-charge share. No other business costs.[3][2]

When card tips have to land

  1. TonightGuest adds a tip On the card, at the table.
  2. CloseShift is tallied The pool is split by your rules.
  3. DeadlineWashington rule Employer-held tips and staff service charges are due no later than wages for the same period. No waiting on card reimbursement.[2][4]
  4. Last dayFinal pay Quit or fired: by the next regular payday. Pay can't be held back for unreturned keys, uniforms or equipment.[7]

Paydays: At least monthly. Shorter pay periods are paid within 10 days; monthly pay can push the last 7 days to the next payday.[22]

Paying tips on a payroll card

  • Allowed?Depends
  • Worker consent needed?Yes (federal)No state rule. Federal rule applies: yes. The employer cannot require its payroll card.[8][7]
  • Free way to get the money?State ruleWorkers can't pay to access their wages. A card with fees needs a free alternative. Federal rules bar requiring a card.[7]
  • Must you offer another option?Yes
  • Holding cash tipsState ruleWorkers can keep their cash tips. Tips the employer holds are due no later than wages for that period.[3]
  • Tips shown on the pay stubDependsRecords must show tips and service charges paid, and pay stubs show gross pay and deductions. Separate pool columns aren't required.[2][23]

Alice Anderson, Server, Downtown. Direct tips +$980.25, indirect tips +$0.00, tip outs -$147.07, tips payable $833.18. Tip Payment history, all Automatic with status Success: 2026-10-29 $833.18, 2026-10-28 $783.19, 2026-10-27 $733.20.

Employee tip payout. Each person's direct tips, tip outs, and payable amount, then paid automatically.
Ferry Pay and Pay Card

Ferry Pay: each tip share, paid out digitally

Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.

Who it's for Operators who want to stop the nightly cash run

Book a demoSee Ferry PayAbout the Pay Card
Customer story: BJ's Restaurants
200+locations across 30 states run Tip Manager and Ferry Pay
66%+reduction in cash-carrying costs
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Jake Guild, Senior Vice President & Chief Accounting Officer, BJ's Restaurants
Read the BJ's case study

10Records

Records and notices in Washington

Keep each tipped worker's tips and hours on record, shift by shift. Washington: at least three years for state payroll records, unless the director allows otherwise.

Washington State

  • Tip records Record each worker's hours, rates, wages, deductions, and tips and service charges paid. Pool and federal records also apply.[2][24]
  • How long to keep them At least three years for state payroll records, unless the director allows otherwise. Local rules may require longer.[25]
  • Tip credit notice Not applicable: Washington has no tip credit.
  • Posters and forms Your Rights as a Worker poster; Itemized payday statement; Applicable city/county wage notices; Worker Rights Complaint form (for workers filing a claim).[1][23][16][26]

Everywhere Federal

  • Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[4]
  • How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[27]
  • Tip credit notice Not needed in Washington: there's no tip credit.
  • A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
For workers

Think your tips were handled wrong in Washington?

Workers in Washington can file a tip or wage claim with the Washington Department of Labor and Industries, Employment Standards (866-219-7321). Filing is free, and this page can't settle a dispute; the state can.[6]

Washington Department of Labor and Industries, Employment Standards
Phone
866-219-7321[6]
Website
lni.wa.gov/workers-rights/wages/minimum-wage
How to file a claim

Retaliation: Retaliation for using wage, tip or service-charge rights is barred, including immigration threats. Agency complaints are generally due within 180 days.[6][26]

Penalties: Unpaid wages and agency remedies. Willful withholding can bring double damages plus costs and attorney fees, with exceptions. Local remedies may add more.[28][29]

Can they take this out of my tips?

  • Walkouts and dine-and-dashNot allowedBusiness costs and manager shares can't come out of tips or the staff service-charge share. Regular wage deduction rules are separate.[2]
  • BreakageNot allowedBusiness costs and manager shares can't come out of tips or the staff service-charge share. Regular wage deduction rules are separate.[2]
  • Register shortagesNot allowedBusiness costs and manager shares can't come out of tips or the staff service-charge share. Regular wage deduction rules are separate.[2]
  • UniformsNot allowedBusiness costs and manager shares can't come out of tips or the staff service-charge share. Regular wage deduction rules are separate.[2]
  • Card processing feesAllowedOnly the actual proportional card fee on the tip or the staff service-charge share.[3]
  • A manager's shareNot allowedBusiness costs and manager shares can't come out of tips or the staff service-charge share. Regular wage deduction rules are separate.[4]

11Law changes

What changed in Washington tip law, and what's coming

Next scheduled change: the Washington minimum wage goes to $17.73 on . Most recent change: Burien repealed old BMC 5.15. City guidance now uses voter-enacted BMC 5.16, with 2026 rates of $21.78, $20.78 and $19.28 ().

  1. ComingMinimum wage goes to $17.73 (General statewide minimum, age 16 and older).[6]
  2. ChangedBurien repealed old BMC 5.15. City guidance now uses voter-enacted BMC 5.16, with 2026 rates of $21.78, $20.78 and $19.28.[12]
  3. ChangedState minimum rose to $17.13. Local 2026 rates differ, with July steps in Everett and Renton.[1]

Bills and ballot measures

Nothing pending as of .

Key statutes

  • RCW 49.46.020, .070, .100, .120, .130, .160
  • RCW 49.48.082–.087; 49.52.050, .070
  • WAC 296-128-010, .020, .820; 296-126-023, .040
  • ES.A. 12 and ES.A. 12.2; SeaTac 7.45

Not law yet

Bills that didn't pass a chamber

These bills were introduced in the 2025-26 session but hadn't passed either chamber as of their last recorded actions on January 12, 2026.[30][31][32][33]

  • 01

    HB 1623

    Would ban card-fee deductions from tips. Current law still allows the actual prorated fee.[30]

  • 02

    SB 5070

    Sits in the Senate Labor and Commerce committee.[31]

  • 03

    HB 1764 and SB 5578

    Proposals tied to a $25 minimum wage. Not part of current rates.[32][33]

12FAQ

Washington tip law questions

Plain answers to the 8 questions restaurant owners and staff ask most about Washington tip law, each linked to its source.

Can tips count toward Washington's minimum wage?

No. Workers get the full cash minimum plus their tips. The state minimum is $17.13 in 2026 and $17.73 starting January 1, 2027.[6][2][34]

What is Seattle's minimum wage?

$21.30 an hour in 2026, rising to $22.14 on January 1, 2027. Every employer size pays the same rate, and tips can't count toward it.[15]

Which Washington cities have their own minimum wage?

Eight local areas have higher 2026 rates: Bellingham, Burien, Everett, unincorporated King County, Renton, SeaTac, Seattle and Tukwila. Employer size or industry can change which rate applies.[10]

Does the SeaTac rate cover every restaurant?

No. SeaTac's $20.74 rate covers qualifying hotels and institutional foodservice. Ordinary standalone restaurants outside those facilities aren't covered by it.[11]

Can cooks and dishwashers share in tips?

Yes. Washington allows kitchen staff in mandatory pools, as long as their full minimum wage is paid separately. Managers and owners stay out.[2][4]

What happens if a service charge isn't clearly disclosed?

The whole charge goes to the employees who served. Restaurants have to show the employee percentage on the receipt and on every menu.[2][19]

Can card processing fees come out of tips?

Only the actual prorated card fee on the tip or the staff share of a service charge. Other business costs can't come out.[2][3]

When are employer-held tips paid out?

No later than the wages for the same pay period. Workers keep their own cash tips.[2][3]

13Compare

How Washington compares with nearby states

Washington borders Idaho, Oregon and Montana. None of the neighbors with a page pays a higher minimum wage than Washington's $17.13. Running locations on both sides of a line? Each one follows its own state's rules.

Neighboring states

States with the same rules

Same tip credit class as Washington: No tip credit.

Compare all states in one table

The law decides who's in. Ferry runs the split.

See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Washington setup.

Book a demoTry the tip pooling calculator

14Sources

Sources for Washington tip laws

Every figure on this page links to one of these 34 sources: 31 for Washington and 3 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.

  1. 12026 Minimum Wage AnnouncementWashington Department of Labor and Industries · Official source · Page updated · Checked Pinpoint: 2026 adult minimum, p. 1; Youth 2026, p. 1www.lni.wa.gov/workers-rights/_docs/2026MinimumWageAnnouncementEnglish.pdf
    What the source says

    “Washington’s minimum wage will be $17.13 per hour beginning Jan. 1, 2026.”

    “Workers who are 14 or 15 years old may be paid 85% of the adult minimum wage, or $14.56 per hour.”

    “required workplace poster Your Rights as a Worker”

  2. 2Tips and Service ChargesWashington Department of Labor and Industries · Official source · Checked Pinpoint: No tip credit; Tip pooling; Tip pool eligibilitywww.lni.wa.gov/workers-rights/wages/tips-and-service-charges
    What the source says

    ““Tip crediting” isn’t allowed.”

    “Employers may establish tip pools or require employees to “tip out” other employees.”

    “Can include employees who are not directly serving a customer, such as kitchen staff and hourly lead workers.”

  3. 3ES.A. 12 Tips Gratuities and Service ChargesWashington Department of Labor and Industries · Official source · Page updated · Checked Pinpoint: B2, p. 3; E,p. 6; D,p. 6www.lni.wa.gov/workers-rights/_docs/esa12.pdf
    What the source says

    “If any portion of a service charge is not clearly designated as being retained by the employer, it is due to the employee or employees serving the customer.”

    “the employer may reduce the amount paid to the employee by up to a prorated percentage of the amount charged by the third party processor”

    “the employer must pay tips, gratuities, and the employee portion of a service charge to the employee no later than wages earned in the same period are paid.”

  4. 4Fact Sheet 15 Federal Tipped EmployeesU.S. Department of Labor · Official source · Checked Pinpoint: Federal service charge overtime; Employers, Including Managers and Supervisors; Credit Cardswww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
    What the source says

    “these sums are part of the employee’s total compensation and must be included in the regular rate of pay for computing overtime.”

    “Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.”

    “Under federal law, the amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company.”

  5. 5RCW 49.46.120 More Favorable Local StandardsWashington Legislature · Official source · Page updated 2017 · Checked Pinpoint: 49.46.120app.leg.wa.gov/RCW/default.aspx?cite=49.46.120
    What the source says

    “such other laws, or rules or regulations, shall be in full force and effect and may be enforced as provided by law.”

  6. 6Washington Minimum WageWashington Department of Labor and Industries · Official source · Checked Pinpoint: 2027 state adult ratewww.lni.wa.gov/workers-rights/wages/minimum-wage
    What the source says

    “The 2027 minimum wage in the state of Washington is $17.73 per hour.”

    “Washington State Department of Labor & Industries Employment Standards Office”

    “The 2026 minimum wage in the state of Washington is $17.13 per hour.”

  7. 7Getting PaidWashington Department of Labor and Industries · Official source · Checked Pinpoint: Final paycheck; Payroll cardswww.lni.wa.gov/workers-rights/wages/getting-paid
    What the source says

    “If an employee quits or is fired, their final paycheck must be paid on or before the next regularly scheduled payday.”

    “Employers may also offer to pay employees using debit or prepaid payroll cards.”

    “If there are fees for using these cards, the employer must provide an alternative that allows employees to access their wages without any fees or costs associated when withdrawing funds.”

  8. 8Federal payroll card choiceConsumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: Federal payroll-card choice; definition, paragraph 1; paragraph following definitionwww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
    What the source says

    “Your employer can’t require you to receive your wages on a payroll card.”

    “Your employer has to offer you at least one alternative to a payroll card.”

    “A payroll card is a prepaid card arranged by an employer for the purpose of paying its employees’ wages or salary.”

  9. 9OvertimeWashington Department of Labor and Industries · Official source · Checked Pinpoint: Overtime rate; Regular rate exclusionswww.lni.wa.gov/workers-rights/wages/overtime
    What the source says

    “at least 1.5 times the employee’s regular hourly rate”

    “Tips and service charges”

  10. 10Local Minimum Wage Rates 2026Washington Department of Labor and Industries · Official source · Page updated 2026 · Checked www.lni.wa.gov/workers-rights/wages/minimum-wage/local-minimum-wage-rates
    What the source says

    “SeaTac: $20.74/hour for employers in hospitality and transportation industries.”

    “$21.57 from July1 to Dec. 31, 2026.”

  11. 11SeaTac Municipal Code 7.45 current chapterCity of SeaTac · Official source · Checked Pinpoint: 7.45.010(F), hotel related premises; 7.45.010(G), coverage exclusions; 7.45.040(B)ecode360.com/51199851
    What the source says

    “such as a restaurant, bar or spa”

    “Restaurants or retail operations that are not located within a hotel, public facility, corporate cafeteria, conference facility or meeting facility are not considered a hospitality employer for the purpose of this chapter.”

    “The amounts received from tips or service charges shall be allocated among the workers who performed these services equitably;”

  12. 12Minimum Wage current BMC 5.16 guidanceCity of Burien · Official source · Checked Pinpoint: Published 2027 ratewww.burienwa.gov/city_hall/laws_regulations/minimum_wage
    What the source says

    “2026 Burien large employer minimum wage hourly rate: $21.78”

    “2027 Burien large employer minimum wage hourly rate: $22.49”

    “2026 Burien medium employer minimum wage hourly rate: $20.78”

  13. 13Labor Standards Minimum Wage OrdinanceCity of Tukwila · Official source · Checked Pinpoint: Published 2027 ratewww.tukwilawa.gov/departments/finance/minimum-wage-and-fair-access-to-additional-hours-of-work
    What the source says

    “The 2026 minimum wage is $21.65 for all employers covered by Tukwila’s Ordinance.”

    “The 2027 minimum wage will be $22.45 for all employers covered by Tukwila’s Ordinance.”

  14. 14Labor Standards current and 2027 ratesCity of Renton · Official source · Checked www.rentonwa.gov/City-Services/Tax-and-Licensing/Labor-Standards
    What the source says

    “the minimum wage for large and midsize employers will increase from $21.57 to $22.28 per hour”

  15. 15Minimum Wage current 2026 and 2027 ratesSeattle Office of Labor Standards · Official source · Checked seattle.gov/laborstandards/ordinances/minimum-wage
    What the source says

    “2026 Minimum Wage $21.30 2027 Minimum Wage $22.14”

  16. 16Minimum Wage in Unincorporated King CountyKing County Department of Local Services · Official source · Checked Pinpoint: Published 2027 ratekingcounty.gov/en/dept/local-services/governance-leadership/local-government-for-unincorporated-king-county/minimum-wage
    What the source says

    “500 or more employees and gross revenue of any amount $20.82 per hour”

    “Starting January 1, 2027, the minimum wage for work done in unincorporated King County will be $21.57 per hour”

    “More than 15 employees but fewer than 500 employees and gross revenue of any amount $19.82 per hour”

  17. 17Minimum Wage current 2026 and 2027 tiersCity of Everett · Official source · Checked Pinpoint: Published 2027 ratewww.everettwa.gov/3287/Minimum-wage
    What the source says

    “$20.77”

    “$21.52”

    “$19.77(7/1/26-12/31/26)”

  18. 18City Minimum WageCity of Bellingham · Official source · Page updated · Checked cob.org/services/business/city-minimum-wage
    What the source says

    “As of January 1, 2026, the current minimum wage in Bellingham is $19.13”

  19. 19RCW 49.46.160 Automatic Service Charge DisclosureWashington Legislature · Official source · Page updated 2010 · Checked Pinpoint: 49.46.160(1)app.leg.wa.gov/RCW/default.aspx?cite=49.46.160
    What the source says

    “must disclose in an itemized receipt and in any menu provided to the customer the percentage of the automatic service charge”

  20. 20Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
    What the source says

    “Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”

    “For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”

    “These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”

  21. 21Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
    What the source says

    “compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”

    “Rev. Rul. 2012-18”

  22. 22WAC 296-126-023 Payment IntervalWashington Legislature · Official source · Page updated · Checked Pinpoint: 296-126-023(3); 296-126-023(4)app.leg.wa.gov/WAC/default.aspx?cite=296-126-023
    What the source says

    “at no longer than monthly payment intervals.”

    “no later than ten calendar days after the end of the pay period”

  23. 23WAC 296-126-040 Statements to EmployeesWashington Legislature · Official source · Page updated · Checked Pinpoint: 296-126-040(1)app.leg.wa.gov/WAC/default.aspx?cite=296-126-040
    What the source says

    “gross wages and all deductions for that pay period.”

  24. 24WAC 296-128-010 Required Payroll RecordsWashington Legislature · Official source · Page updated · Checked Pinpoint: 296-128-010(9)app.leg.wa.gov/WAC/default.aspx?cite=296-128-010
    What the source says

    “Total additions to or deductions from wages paid each pay period.”

  25. 25WAC 296-128-020 Records RetentionWashington Legislature · Official source · Page updated · Checked Pinpoint: 296-128-020app.leg.wa.gov/WAC/default.aspx?cite=296-128-020
    What the source says

    “all records required under WAC 296-128-010 shall be kept for a period of at least three years.”

  26. 26Worker Rights ComplaintsWashington Department of Labor and Industries · Official source · Checked Pinpoint: Protected rightswww.lni.wa.gov/workers-rights/workplace-complaints/worker-rights-complaints
    What the source says

    “Download and mail a completed Worker Rights Complaint form (F700-148-000).”

    “You can file a worker rights complaint with L&I”

    “It is against the law for a business to fire or otherwise retaliate against an employee who exercises a protected right”

  27. 27Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
    What the source says

    “Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”

    “Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”

    “Records on which wage computations are based should be retained for two years,”

  28. 28RCW 49.52.070 Civil Exemplary DamagesWashington Legislature · Official source · Page updated 2010 · Checked Pinpoint: 49.52.070app.leg.wa.gov/RCW/default.aspx?cite=49.52.070
    What the source says

    “twice the amount of the wages unlawfully rebated or withheld by way of exemplary damages, together with costs of suit and a reasonable sum for attorney”

  29. 29RCW 49.52.050 Willful Wage WithholdingWashington Legislature · Official source · Page updated 2010 · Checked Pinpoint: 49.52.050(2)app.leg.wa.gov/RCW/default.aspx?cite=49.52.050
    What the source says

    “Wilfully and with intent to deprive the employee of any part of his or her wages”

  30. 30HB 1623 official 2025–26 statusWashington Legislature · Official source · Page updated · Checked app.leg.wa.gov/billsummary?BillNumber=1623&Year=2026
  31. 31SB 5070 official 2025–26 statusWashington Legislature · Official source · Page updated · Checked app.leg.wa.gov/billsummary?BillNumber=5070&Year=2026
  32. 32HB 1764 official 2025–26 statusWashington Legislature · Official source · Page updated · Checked app.leg.wa.gov/billsummary?BillNumber=1764&Year=2026
  33. 33SB 5578 official 2025–26 statusWashington Legislature · Official source · Page updated · Checked app.leg.wa.gov/billsummary?BillNumber=5578&Year=2026
  34. 342027 Minimum Wage AnnouncementWashington Department of Labor and Industries · Official source · Page updated · Checked www.lni.wa.gov/workers-rights/_docs/2027-minimum-wage-announcement-Accessible.pdf

15Methodology

How we research these pages

Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.

  1. 1

    Official sources only

    Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.

  2. 2

    Every figure is linked

    Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.

  3. 3

    Re-checked on a schedule

    Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.

  4. 4

    Gaps are left out, not guessed

    If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.

What changed on this page

  1. First version of this page. Every figure was checked against the official sources listed on this page.

Researched by Ferry's tip operations research team. Last reviewed .

Changes to the law itself are listed in What changed and what's coming.

16Every state

Tip laws in every state

Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.

  • No tip creditNo tip credit
  • Above $2.13Tip credit, cash wage above federal
  • $2.13 cashTip credit, federal cash wage
  • FederalFederal rates apply

51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.