The proposed bill, titled the "Tip Sharing Policy Act," aims to align state regulations on tip pooling with the federal Fair Labor Standards Act (FLSA). Specifically, it repeals the existing state law, RSA 279:26-b, and replaces it with new language that stipulates that the pooling and sharing of tips among employees will now be governed by the provisions of the FLSA, including relevant regulations. This change effectively removes the previous state restrictions on tip pooling and adopts federal guidelines, which may provide more flexibility for employers and employees in how tips are managed.

The bill includes the deletion of the current state law regarding tip pooling and the insertion of language that explicitly references the FLSA and its associated regulations, such as 29 C.F.R. sections 531.42, 531.50, and 531.54. The act is set to take effect 60 days after its passage, allowing for a transition period for businesses and employees to adapt to the new federal standards governing tip sharing.