The proposed bill, titled the "Tip Sharing Policy Act," aims to update the regulations surrounding tip pooling and sharing among employees in the state. It replaces the existing state restrictions with the federal Fair Labor Standards Act (FLSA) guidelines, specifically incorporating relevant sections of the FLSA and its regulations. The bill prohibits employers from imposing tip pooling arrangements that include employees not typically receiving tips, while allowing exceptions for certain customer service roles. Additionally, it explicitly forbids owners, managers, and supervisors from participating in tip pools, even if they interact directly with customers.

Furthermore, the bill mandates that establishments requiring or permitting tip pooling must notify patrons of this practice, either through conspicuous signage or clear disclosures on menus. The definition of "tip pooling" is amended to remove the term "voluntary," indicating a shift towards a more structured approach to tip sharing. The bill also repeals a previous definition related to coercion, streamlining the legal framework surrounding tip pooling. The provisions of this act will take effect 60 days after its passage.

Statutes affected:
As Amended by the House: 279:1