This bill amends existing laws regarding tip pooling and sharing arrangements by requiring employers to provide clear documentation and written notice to employees about these practices. Specifically, it mandates that employers include an example of the tip pooling or sharing arrangement in their documentation and that they provide written notice to employees, which must state that participation is voluntary and that employees can choose which staff to share tips with, as well as the option to opt out on any shift. The bill also emphasizes that employers cannot coerce employees into participating in these arrangements.

Additionally, the bill introduces a new section concerning automatic service charges, defining them as fixed percentage amounts collected from customers for services provided by employees. Employers who apply such charges must disclose on itemized receipts the percentage allocated to the employees serving the customer, as well as any portions of the charge that do not go directly to the employees, explaining their intended use. This legislation aims to enhance transparency for both employees and customers regarding tip and service charge practices.

Statutes affected:
Introduced: 279:26-b
HB757 text: 279:26-b