I. Tips are wages and shall be the property of the employee receiving the tip and shall be retained by the employee, unless the employee voluntarily and without coercion from his or her employer agrees to participate in a tip pooling or tip sharing arrangement.
II. No employer is precluded from administering a valid tip pooling or tip sharing arrangement, including suggesting reasonable and customary practices, documenting agreed upon practice, and mediating disputes between employees regarding a valid tip pooling or tip sharing arrangement, provided that the employer does not require or coerce employees to participate in the tip pooling or tip sharing arrangement.

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Terms Used In New Hampshire Revised Statutes 279:26-b

  • Coercion: means the threat of or a direct action which results in an adverse effect on an employee's economic or employment status. See New Hampshire Revised Statutes 279:1
  • Employee: means and includes every person who may be permitted, required, or directed by any employer, in consideration of direct or indirect gain or profit, to engage in any employment, but shall not include any person exempted from the definition of employee as stated in N. See New Hampshire Revised Statutes 279:1
  • Employer: shall include any individual, partnership, association, joint stock company, trust, corporation, limited liability company, the administrator or executor of the estate of a deceased individual, or the receiver, trustee, or successor of any of the same, employing any person. See New Hampshire Revised Statutes 279:1
  • Tip: means money given to an employee by a customer, in cash or its equivalent, or transferred to the employee by the employer pursuant to directions from a credit card customer who designates a sum to be added to the bill as a tip, or added as a gratuity to a customer's bill, in recognition of service performed. See New Hampshire Revised Statutes 279:1
  • Tip pooling: means the voluntary practice by which the tip earnings of directly tipped employees within the same job category are intermingled in a common pool and then redistributed among participating employees. See New Hampshire Revised Statutes 279:1
  • Tip sharing: means the practice by which a directly tipped employee gives a portion of his or her tips to another worker who participated in providing service to customers. See New Hampshire Revised Statutes 279:1

III. Nothing shall preclude employee participants in a tip pool from agreeing, voluntarily and without coercion from the employer, to provide a portion of the common pool to other employees, regardless of job category, who participated in providing service to customers.