S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9008
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              August 13, 2025
                                ___________
 
 Introduced  by  M.  of  A. SANTABARBARA -- read once and referred to the
   Committee on Labor
 
 AN ACT to amend the labor law, in relation to authorizing equitable  tip
   pooling  structures  for  counter  service  restaurants  that  pay all
   employees at or above minimum wage

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The labor law is amended by adding a new section 196-e to
 read as follows:
   § 196-E. EQUITABLE TIP POOLING. 1. FOR THE PURPOSES OF  THIS  SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "COUNTER SERVICE RESTAURANT" SHALL MEAN A FOOD SERVICE ESTABLISH-
 MENT THAT INCLUDES THE FOLLOWING:
   (I) ORDERS PLACED AT A COUNTER OR KIOSK;
   (II) LIMITED OR NO TABLE SERVICE;
   (III) PAYMENT MADE BY CUSTOMERS AT THE TIME OF ORDERING AND  PRIOR  TO
 RECEIVING FOOD; AND
   (IV)  TIPS  COLLECTED IN A COMMON POOL, NOT DIRECTED TO ANY INDIVIDUAL
 SERVER; AND
   (B) "TIP POOLING" SHALL MEAN THE PRACTICE BY WHICH  TIP  EARNINGS  ARE
 INTERMINGLED IN A COMMON POOL AND THEN REDISTRIBUTED AMONG EMPLOYEES.
   2.  A COUNTER SERVICE RESTAURANT MAY IMPLEMENT A TIP POOLING POLICY TO
 DISTRIBUTE ANY TIPS TO HOURLY EMPLOYEES, IN BOTH SERVICE AND NON-SERVICE
 POSITIONS, PAID AT OR ABOVE THE  MINIMUM  WAGE  REQUIRED  UNDER  ARTICLE
 NINETEEN  OF  THIS CHAPTER. AN EMPLOYER MAY REQUIRE EMPLOYEES TO PARTIC-
 IPATE IN A TIP POOL AND SHALL SET THE PERCENTAGE TO  BE  DISTRIBUTED  TO
 EMPLOYEES  BASED ON THE PROPORTION OF HOURS WORKED. NO EMPLOYER OR MANA-
 GERIAL STAFF WITH AUTHORITY OVER PERSONNEL DECISIONS SHALL  QUALIFY  FOR
 PARTICIPATION IN TIP POOLING.
   3. (A) ANY COUNTER SERVICE RESTAURANT THAT CHOOSES TO PERMIT TIP POOL-
 ING  AS AUTHORIZED IN THIS SECTION IS REQUIRED TO INFORM THEIR EMPLOYEES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13501-01-5
              

 A. 9008                             2
 
 OF SUCH POLICY THROUGH A CONSPICUOUSLY POSTED NOTICE OR OTHER  EFFECTIVE
 MEANS OF DISCLOSURE WITH AS MUCH ADVANCE NOTICE AS POSSIBLE.
   (B)  IF AT ANY TIME SUCH RESTAURANT THAT WAS PREVIOUSLY PERMITTING TIP
 POOLING AS AUTHORIZED IN THIS SECTION CEASES TO DO SO,  THAT  RESTAURANT
 SHALL  INFORM  THEIR  EMPLOYEES  OF  SUCH ACTION THROUGH A CONSPICUOUSLY
 POSTED NOTICE OR OTHER EFFECTIVE MEANS OF DISCLOSURE AT LEAST SEVEN DAYS
 PRIOR TO IMPLEMENTING SUCH A POLICY OR WITH AS MUCH  ADVANCE  NOTICE  AS
 POSSIBLE.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such date.