Establishments may charge leasing fees to entertainers under certain conditions. "Leasing fee" means a fee, charge, or other request for money from an entertainer by an establishment in exchange for the entertainer's access use of, or ability to conduct entertainment on the establishment premises. Tips and gratuities do not count toward amounts considered for the calculation of maximum leasing fee rates.

Tips & Gratuities

Entertainers are not required to disclose amounts or surrender any tips or gratuities to an establishment. Employers also cannot require entertainers to participate in a tip pool with other workers.

Tips and gratuities do not count toward amounts considered for the calculation of maximum leasing fee rates.

An establishment may not retaliate against an entertainer in response to the entertainer's use of, collection of, or refusal to surrender tips or gratuities.

Leasing Fees

"Leasing fee" means a fee, charge, or other request for money from an entertainer by an establishment in exchange for the entertainer's access use of, or ability to conduct entertainment on the establishment premises.

An establishment is not required to collect leasing fees or other fees from an entertainer. If an establishment charges an entertainer any fee(s), including leasing fee(s), such fee(s) must:

  • Apply equally to all entertainers in the establishment;
  • Apply due dates or required timing of fee payment equally to all entertainers in a given establishment;
  • Be stated in a written contract, including a method for estimating the total amount collected by the entertainer in any eight-hour period for the purposes of calculating maximum leasing fee rates in accordance with WAC 296-128-90040; and
  • Continue to apply for a period of not less than three months.

An establishment may not charge an entertainer fees or interest:

  • For late payments or nonpayment of any fee;
  • For an entertainer's failure to appear at a scheduled time;
  • That result in the entertainer carrying forward an unpaid leasing fee balance;
  • In an amount greater than the entertainer receives during the applicable period of access to or usage of the establishment premises; or
  • Within an eight-hour period, any leasing fee that exceeds:
    • Nonprivate performance areas: The lesser of $150 or 30% of amounts collected by the entertainer; plus
    • Private performance areas: 30% of amounts collected by the entertainer.

"Amounts collected" means an establishment's designated charges for entertainment and individual performances in a private performance area and any individual performance in a nonprivate area. Tips and gratuities are in addition to, and do not count towards the calculation of leasing fees.

An establishment may provide leasing fee discounts or credits to encourage scheduling or charge leasing fees that vary based on the time of day, so long as the discounts or credits are applied uniformly.

Calculating Leasing Fees
Establishments are responsible for ensuring leasing fees don’t exceed certain amounts. Leasing fee calculations should be based on designated customer charges and not based on the exact amounts received by an entertainer during their shift. This includes an establishment's designated customer charges for entertainment and individual performances provided in private performance areas and any individual performance in a nonprivate area.
Designated charges are based on the establishment's designation of what those services cost, whether presumed, contractual, or posted. An establishment must have accurate designated charges reflected in a written contract with the entertainer.
Tips and gratuities are in addition to, and do not count towards the calculation of leasing fees. Tips and gratuities are amounts freely given by a customer to an entertainer.
An establishment's recorded tally of the number of dances performed by an entertainer multiplied by amounts collected by the entertainer, as designated in the written contract, may be considered a method for estimating the total amounts collected by the entertainer in any eight-hour period for the purposes of calculating maximum leasing fee rates.

Example Leasing Fee Calculations:  

An entertainer works 8 hours and completes 10 dances in a private area and 5 dances in a nonprivate area. Each dance in a nonprivate performance area costs a customer $50.00. Each dance in a private performance area costs a customer $100.00. The cost is designated in the entertainer’s written contract. 
Nonprivate performance area: $50 x 5 dances= $250 
  • The entertainer cannot be charged more than the lesser of $150 or 30% of $250.00
    • 30% of 250 is $75.00, which is less than $150

Private performance area: $100 x 10 dances = $1,000.00

  • The entertainer cannot be charged more than 30% of $1000.00
    • 30% of 1,000.00 is $300.00
$300.00 plus $75.00 equals a maximum leasing fee of $375.00