New Hampshire tip pooling and service charge rules for restaurants

Tips and service charges sit between wage law and tax law, and New Hampshire has its own rules on both. This guide, checked in October 2026, explains how state law treats tips, what a voluntary tip pool can and cannot look like, how automatic service charges differ from tips, and what bills before the legislature may change. It is general information, not legal advice. Wage figures here come from compliance websites, so check them with the New Hampshire Department of Labor, and ask an employment lawyer before you set or change a pool.

Who owns a tip in New Hampshire?

RSA 279:26-b says tips are wages and are the property of the employee who receives them, and must be retained by that employee, unless the employee voluntarily and without coercion from the employer agrees to take part in a tip pooling or tip sharing arrangement. The law also says no employer is precluded from administering a valid arrangement, including suggesting reasonable and customary practices, documenting an agreed practice and mediating disputes between employees, provided there is no coercion. A 2012 amendment added definitions of tip pooling, tip sharing and coercion.

What does voluntary mean in practice?

It means employees have a real choice. A pool that is a condition of employment, announced by a manager as the only way tips will be handled, is at risk of being coercive. The safer approach is to let staff decide: hold a meeting, explain options, vote or sign agreement, and record it. If someone declines, do not penalize them. You may suggest customary practices, such as tipping out the bussers and bartenders, but let employees agree.

Who can be in the pool?

The state law does not list roles. Federal law does. The U.S. Department of Labor's Fact Sheet 15B says managers and supervisors may not receive tips from a tip pool, whether or not the employer takes a tip credit, and a December 2024 opinion letter reaffirmed that managers and supervisors may not take part in a pool under any circumstances. Whether someone is a manager depends on duties, not title. A manager who directly and solely serves their own customers may keep those customers' tips. Under the federal rules, back-of-house staff such as cooks and dishwashers can be in a pool only if the employer pays full minimum wage and takes no tip credit; if you do take a tip credit, the pool is limited to employees who customarily and regularly receive tips. New Hampshire allows a tip credit, so choose your approach and document it.

How does the tipped wage work?

A compliance website updated in April 2026 lists New Hampshire's minimum wage as $7.25 an hour, matching the federal rate, and the tipped employee cash wage as about $3.27. These figures are from a secondary source, so confirm them with the New Hampshire Department of Labor. If a tipped employee's tips plus cash wage do not reach the full minimum wage in a pay period, you must make up the difference. Many New Hampshire restaurants pay more than the minimum to attract staff.

What is a service charge, and how is it different?

A service charge is an amount the restaurant adds to the check, such as an 18 percent charge for parties of eight or more. Under federal rules, it is not a tip; it belongs to the business, which may use it to pay wages or distribute as it chooses. If your menu or check says it is a gratuity for the staff, then it should be paid to the staff. Disclose any service charge on the menu, the website and the check, in plain words. A guest should know whether they are expected to tip on top.

How are service charges taxed?

New Hampshire's Meals and Rentals Tax applies to the price of a meal. The Department of Revenue Administration's 2026 booklet says that mandatory gratuities and service charges added to a meal bill may be taxed in certain circumstances and points to RSA 78-A:6-a. Read the statute and ask the DRA how your own automatic gratuity is treated, especially if it goes entirely to the service staff, then configure your point-of-sale system accordingly.

A worked example of a tip pool

Suppose a restaurant takes no tip credit and decides, with a vote of the staff, to pool all card tips from the dining room among servers, bussers, bartenders and cooks. On a night with $1,000 in tips, the formula divides the pool by points: servers 3 points, bartenders 3, bussers 2 and cooks 1 per hour worked. A manager who steps in to carry plates takes nothing from the pool and keeps no tip. After deducting the proportional share of card fees, if the restaurant chooses to, the pool is paid out on the next regular payday, with each person's share shown on the pay stub. If a server objects, the restaurant listens and, if the arrangement was voluntary, does not retaliate. Document the vote and the formula.

What bills are pending?

A 2025 bill, House Bill 757, proposed written notice of tip pooling arrangements and new rules on automatic service charges; it was tabled in the House and did not become law, according to the Citizens Count tracker. A 2026 bill, Senate Bill 416, would have tied New Hampshire tip pooling to the federal Fair Labor Standards Act. It passed the Senate in February 2026, the House sent it to interim study in May 2026, and in October 2026 a House committee report recommended future legislation, so it is not law. The legislature can change these rules, so read the current statute before you act.

What should you put in writing?

A short policy covering the roles in the pool, the formula, the pay schedule, the voluntary nature, the treatment of card fees, the handling of service charges and the way to raise a concern. Have each employee sign it and keep it with payroll records. Review it each year.

More guides for your business:

• New Hampshire Meals and Rooms Tax and tipped wages for restaurants
• How to get more customers to a restaurant in New Hampshire
• Is New Hampshire's restaurant labor shortage easing in 2026?

More in the US guides for food businesses.