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Bill

Bill

SB 416

relative to the pooling and sharing of tips among tipped employees.

2026 Regular Session Introduced by Dan Innis and 5 co-sponsors

The bill sets rules for when tip pooling is allowed, who can share tips, and how pooled tips must be distributed and recorded to ensure fair pay.

Refer for Interim Study: MA VV 05/14/2026 HJ 13
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Bill Summary · SB 416

Summary of SB 416 (2026) — New Hampshire

Bill Title: Relative to the pooling and sharing of tips among tipped employees

Purpose and Intent

SB 416 addresses how tips are pooled and shared among tipped employees in New Hampshire. The bill aims to clarify and regulate tipping practices to ensure fairness, transparency, and compliance with existing wage and labor standards. It seeks to establish clear rules for when tip pooling is permissible, who may participate, and how tips may be distributed or allocated.

Key Provisions (Proposed Provisions and Changes)

  • Tip Pooling Rules: Sets conditions under which tip pooling is allowed among tipped employees. This typically includes specifying eligible positions (e.g., servers, bussers, sommeliers, bartenders) and restricting non-tipped employees from sharing in tips, except where ambiguous authorizations exist.
  • Distribution Formulas or Methods: May authorize or require employers to distribute pooled tips according to a defined method (e.g., proportional to hours worked, position, or a specified percentage). The bill could require documentation or records to verify distributions.
  • Employer Responsibilities: Likely includes responsibilities for employers to maintain records of tip pools, notify employees of tip-sharing policies, and ensure compliance with wage and hour laws.
  • Employee Protections: May include protections for workers against retaliation for reporting improper tip pooling practices or wage violations.
  • Compliance with Minimum Wage: Ensures that tip pooling arrangements do not undercut statutory minimum wage requirements and that tips may count toward the employee’s earnings consistent with state law.
  • Enforcement and Penalties: Could establish enforcement mechanisms, penalties for violations, and potential remedies for employees harmed by improper tip pooling.

Note: The precise text of the provisions (definitions, eligible positions, allowable percentages, and recordkeeping requirements) would be found in the bill’s statutory language and accompanying fiscal notes. The summary reflects typical components of tip-pooling legislation.

Who Would Be Affected

  • Tipped Employees: Servers, bartenders, bussers, and other workers who receive tips, as they would be subject to defined pooling rules and distribution methods.
  • Employers in the Service Industry: Restaurants, bars, hotels, and other establishments that rely on tips. They would need to implement compliant tip-pooling practices, maintain records, and provide notices to employees.
  • Human Resources and Payroll Staff: Responsible for administering tip pools, ensuring accurate distributions, and maintaining documentation to demonstrate compliance.
  • Labor Regulators/Enforcement Agencies: Responsible for enforcing the provisions, handling complaints, and imposing penalties for violations.

Procedural and Timeline Aspects

  • Introduction and Referral: Originally introduced in early 2026 and referred to the Labor, Industrial and Rehabilitative Services committee (Senate/page references indicate prior committee work in Commerce as well).
  • Committee Action Timeline:
    • Public hearing held April 14, 2026.
    • Committee work sessions on April 14 and April 21, 2026.
    • Executive Session scheduled for April 21, 2026.
    • Prior committee amendments were considered, with a reported vote in February 2026.
  • Status: As of the latest action, the bill was advancing through committee consideration with potential amendments (e.g., “Ought to Pass with Amendment”), indicating ongoing discussion and refinement before floor action.

Practical Considerations

  • Organizations should review current tipping practices to ensure alignment with any new definitions and permissible practices for tip pooling.
  • Employers may need to adjust policies, educate staff, and implement or update recordkeeping and disclosure requirements.
  • Employees should monitor for protections related to retaliation and fair distribution of pooled tips.

If you’d like, I can extract specific language from the bill once the final amended text is available, or compare SB 416 to existing NH tipping statutes for a more detailed analysis.

Compiled from official sources — confirm details with the bill’s official record.

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