What are the rules for tip-pooling?

In New Mexico, tip-pooling is legal as long as certain rules are followed. A tip-pool occurs when workers in the service industry pool together the tips that they have received and then evenly divide the amount among them. According to the New Mexico Wage and Hour Law, all tipping employees must be allowed to participate in the tip pool. This includes servers, bussers, bellhops, and bartenders. Employees cannot be required to contribute to the tip pool, but they must be given the option of contributing to the pool and receiving a share of the tips. Employers must not participate in the tip pooling process unless they provide direct services to the customer. This means that employers are not allowed to take a portion of the earned tips. Employers are also not allowed to require employees to contribute their tips to a tip pool as a form of wage. All participating employees must share in the tip pool equally. This means that regardless of the role each employee plays, each employee must receive the same amount from the pooled tips. Employers may only withhold tips from the pool to pay for credit card fees, if the service was paid with a credit or debit card, and may also withhold tips to reimburse employees for customer walkouts. However, employers cannot withhold tips for any other reason. New Mexico wage and hour law allows for tip-pooling as long as the above conditions are met. Tip pooling can be helpful to employees in the service industry, as it allows workers to benefit from the tips that are earned by other workers. It is important for employers to understand the rules of tip-pooling in order to ensure that they remain compliant with the law.

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What are the rules for tip-pooling?

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