What are the rules for tip-pooling?

In New Hampshire, employers are allowed to collect tips from employees and redistribute them through a tip-pooling system. However, there are certain rules and regulations employers must follow to do so legally. According to the New Hampshire Wage and Hour Law, employers can institute a tip pooling program, however, only tipped employees can participate. Employers cannot keep any of the money collected from the pool and must redistribute the pool among all of the tipped employees. Employees cannot be forced to contribute to the pool and employers must not make any deductions from an employee’s wages to pay into the pool. Employees must be clearly informed of the tip pooling policy before they are required to contribute to it and employers must make sure that all employees who are eligible to participate in the pool are included. In addition, tipped employees must receive all tips transferred into the pool or redistributed from the pool in a prompt manner. Finally, employers must not to require or allow employees to share tips with non-tipped employees, such as supervisors or kitchen staff. Non-tipped employees are not permitted to receive any of the money collected or redistributed among employees by the tip pooling system. Overall, tip pooling can help employees increase their wages and help employers manage their finances more easily. However, it must be done in accordance to New Hampshire Wage and Hour Law to ensure that all employees are being treated fairly and legally.

Related FAQs

How are bonuses calculated when employees are paid by the hour?
What are the requirements for reporting wages to the government?
Are employers allowed to pay tipped and non-tipped employees different wages?
What are the rules for vacation pay?
What type of records must employers provide regarding wages earned?
What is the difference between exempt and nonexempt employees?
What is the difference between an employee and an independent contractor?
What rights do employees have under the Fair Labor Standards Act (FLSA)?
What is the employee right to minimum wage?
What is the minimum wage for tipped workers?

What are the rules for tip-pooling?

Related FAQs

Related Blog Posts