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Pa. Lawmakers Consider Ban On Credit Card Tip Fees

By Tony Romeo

PHILADELPHIA (CBS)-- Legislation that would have the rest of the state follow Philadelphia's lead and prevent employers from deducting fees from workers' tips that are charged to credit cards is getting a serious look in Harrisburg.

The legislation was the subject of a hearing before the House Labor and Industry Committee.

Melissa Bova of the Pennsylvania Restaurant and Lodging Association told the panel that it's not a common practice for her members to deduct credit card fees from employees' tips. But she said for those who do, it's part of their business plan.

That didn't sit well with Philadelphia's William Keller, ranking Democrat on the committee.

BOVA: "They would have to find those extra thousands of dollars in processing fees somewhere else."
KELLER: "Other than charging their employees. That's --"
BOVA: They would have to find, in their business plan – they would have to raise prices…"
KELLER: "Better to pass it on to the customer than it is taking it out of the employees, as far as I'm concerned."

The committee chairman said he also wants to explore the feasibility of instead prohibiting credit card companies from applying fees to tips in the first place.


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