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Allows Tip Pooling Among All Employees
Recent Bills/Allows Tip Pooling Among All Employees

Allows Tip Pooling Among All Employees

IntroducedJanuary 3, 2025
Introduced1 year ago
Intro
House
Senate
Pres
Referred to the House Committee on Education and Workforce.
More:Recently Introduced BillsEconomyHouse Bills
Why This Matters

This bill allows employees in the service industry to share tips more fairly by pooling them together, benefiting all workers involved.

If you work in a restaurant, you can benefit from shared tips with your coworkers under this new law.
Who this affects
restaurant workers · bartenders · service employees
What changes is this bill making?
  1. 1This bill lets all employees share tips, not just those who receive them directly.
  2. 2It changes the Fair Labor Standards Act to include more employees in tip pooling.
  3. 3Employees who do not usually receive tips can now benefit from pooled tips.
  4. 4This aims to create a fairer distribution of tips among staff in service industries.
Read the detailed summary

Small Business Flexibility Act This bill provides statutory authority for the pooling of tips among two pools of employees. The first pool consists of employees who customarily and regularly receive tips (as is permitted under the current statute). The second pool consists of (1) employees who customarily and regularly receive tips and are paid at least minimum wage, and (2) employees who do not customarily and regularly receive tips.

Bill Progress1 of 4
Bills must pass the House, Senate, and be signed by the President to become law.
Intro
House
Senate
Pres
IntroducedCurrentJan 3, 2025

Referred to the House Committee on Education and Workforce.

Sponsors
See all 2 sponsors
House
Senate
President

The President

Joe Biden
46th President
Awaiting Vote
Similar Bills
House Bill · HR 2312
1 of 4 · Introduced
Tipped Employee Protection Act
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House Bill · HR 482
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No Tax on Tips Act
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House Bill · HR 7577
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Minimum Wage for Tipped Workers Bill
TIP Improvement Act of 2026