Change to NH Tip Pooling/Tip Sharing Law - RSA 279

If you are a NH business whose employees receive tips from customers, effective September 1, 2023, RSA 279:1, XII was amended to permit business to document the tip pooling or tip sharing agreement that was agreed upon, voluntarily, by its employees. Link to Text of Law. While employers were permitted to oversee the employee’s tip pooling or tip sharing agreement, Prior to the passage of this amendment, the New Hampshire Department of Labor took the position that the existence of a document, created by the employer – even with the input of employees, that memorialized the employees’ tip pooling or tip sharing agreement could be considered evidence of employer coercion and negate the voluntariness of the agreement.

Now, NH employers may create such a document without fear that it will used to draw an inference of coercion. This is extremely helpful to both employers and employees where employers had their hands tied when defending unpaid wage claims because they did not (and could not) have written evidence of the tip pooling or tip sharing agreement and its voluntariness. This amendment is helpful to employees who participate in tip pooling or tip sharing arrangements where it provides another check and balance to ensure that employees are receiving the correct amount in tips pursuant to the agreement.

As a reminder: Employers cannot coerce employees into have a tip pooling or tip sharing agreement. Any such agreement must be entered into voluntarily by employees.

P|K Tuned-In provides general legal information, not legal advice.  You should consult your attorney for guidance specific to your particular situation.