States that prohibit deductions from Credit Card tips for processing Fees

The following states do not allow employers to deduct a certain percentage from a server’s credit card tips for processing fees.

  • Alaska
  • California
  • Colorado
  • Montana
  • Nevada
  • Oregon
  • Washington
  • New Mexico  and Idaho * Employer may take the deduction only if the employee agrees to the deduction and signs a written waiver

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