BILL · 2025–26 SESSION

SB 5070: Interchange fees on tips

Concerning prohibiting fees on certain acts of commerce to protect tipped wages for workers while reducing the financial burden on employers.

Summary

  • Prohibits certain entities involved in processing electronic payment transactions from receiving or charging a merchant an interchange fee on the sales and use tax or gratuity amount of a transaction, and imposes a $1,000 penalty for each violation.
  • Bars an employer from reducing an employee's tips, gratuities, or service charges by the amount of any interchange fees.

From the Senate Bill Report (Orig.) (SB 5070), written by the Legislature's nonpartisan staff. Read the full report ↗

Did not pass Did not pass · died in committee
  1. IntroducedJan 13, 2025
  2. Out of committeestopped here
  3. Passed Senate
  4. Passed House
  5. Governor
  6. Law
Prime sponsor
Rebecca Saldaña (D-37)
Introduced
January 13, 2025 in the Senate
Last action
January 12, 2026
Budget
Has a fiscal note

AN ACT Relating to prohibiting fees on certain acts of commerce to protect tipped wages for workers while reducing the financial burden on employers;

Sponsors

Votes

No recorded floor votes. This measure never reached a floor vote.

History

  1. By resolution, reintroduced and retained in present status.
  2. First reading, referred to Labor & Commerce.
  3. Prefiled for introduction.

SB 5070 in other sessions

Bill numbers restart every two years, so the same number is a different bill in each session.

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