The Waratahs handed down the punishment on Tuesday evening after Phipps had earlier fronted the media to apologise for his indiscretion. Describing himself as a "goose", Phipps said he would cop any sanction that came his way.

"Nick Phipps has admitted his guilt and the investigation found the reported events to be true and accurate," NSW Waratahs chief executive Andrew Hore said via media release.

"The player has been fined $4000, which will be donated to the NSW Positive Rugby Foundation to support community rugby activities. Phipps' role as State Club Captain of the NSW Waratahs has also been suspended and his reinstatement to this role will be monitored by the organisation.

"He will be served with a notice relating to a breach of the organisation's Code of Conduct policy."

Phipps is free to play this weekend with the Waratahs facing the Blues at Brookvale Oval on Sydney's Northern Beaches. The 61-Test halfback was married during the Waratah's bye last weekend, his indiscretion coming the week prior at the Woollahra Hotel in Sydney's Eastern Suburbs.