Bill Details
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would change federal wage rules so that tips could be shared among a wider group of workers. Right now, tip pooling is mainly limited to employees who usually and regularly get tips, like servers or bartenders. Under this bill, employers could also include other workers in the tip pool, as long as certain pay rules are met. The goal is to give businesses more flexibility in how they divide tips among staff.
- It would amend the Fair Labor Standards Act, which is the main federal law covering wages and hours.
- Tip pools could include both workers who normally receive tips and workers who do not usually receive tips.
- Workers who are included in the tip pool but do not usually get tips would have to be paid at least the federal minimum wage in cash wages by the employer.
- The bill is meant to give small businesses more freedom in how they manage pay and tips for their employees.
Official Summaries
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.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 85 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 85
To amend the Fair Labor Standards Act of 1938 to allow the pooling of
tips among all employees, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2025
Mr. Biggs of Arizona introduced the following bill; which was referred
to the Committee on Education and Workforce
_______________________________________________________________________
A BILL
To amend the Fair Labor Standards Act of 1938 to allow the pooling of
tips among all employees, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Flexibility Act''.
SEC. 2. TIP POOLING.
Section 3(m)(2) of the Fair Labor Standards Act (29 U.S.C.
203(m)(2)) is amended--
(1) in subparagraph (A)(ii), by striking ``employees who
customarily and regularly receive tips'' and inserting ``pools
of employees described in subparagraph (C)''; and
(2) by adding at the end the following:
``(C) The pools of employees described in this subparagraph are as
follows:
``(i) Employees who customarily and regularly receive tips.
``(ii) Employees who--
``(I) customarily and regularly receive tips and
receive a cash wage paid by the employer that is not
less than the wage in effect under section 6(a)(1); and
``(II) do not customarily and regularly receive
tips.''.
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