(a)  A tip is the sole property of the tipped employee. Any arrangement between the employer and the tipped employee whereby any part of the tip received becomes the property of the employer is prohibited.

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Terms Used In Rhode Island General Laws 28-14.1-2

  • Employee: means any person who has entered into the employment of or works under contract of service or apprenticeship with any employer, except that in the case of a city or town other than the city of Providence it shall only mean that class or those classes of employees as may be designated by a city, town, or regional school district in a manner provided in this chapter to receive compensation under chapters 29 — 38 of this title. See Rhode Island General Laws 28-29-2
  • Employer: means any individual, firm, partnership, association, joint stock company, trust, corporation, receiver, or other like officer appointed by a court of this state, and any agent or officer of any of the previously mentioned classes, employing any person in this state. See Rhode Island General Laws 28-14.1-1
  • Tip: means voluntary monetary compensation received directly or indirectly by the employee for services rendered. See Rhode Island General Laws 28-14.1-1
  • Tipped employee: means any employee engaged in an occupation in which the employee customarily and regularly receives more than thirty dollars ($30. See Rhode Island General Laws 28-14.1-1

(b)  The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips.

(1)  An employer must notify its employees of any required tip pool contribution amount, may only take a tip credit for the amount of tips each employee ultimately receives, and may not retain any of the employees’ tips for any other purpose, except as provided in § 28-14.1-4.

(2)  An employer that pays the full minimum wage and takes no tip credit may allow employees who are not tipped employees to participate in the tip pool. This shall not apply to exempt employees as defined by section 13(a)(1) of the Fair Labor Standards Act as defined by regulations 29 C.F.R. part 541.

History of Section.
P.L. 2022, ch. 245, § 1, effective June 28, 2022; P.L. 2022, ch. 246, § 1, effective June 28, 2022.