Small Business Flexibility Act

1/31/2025, 7:54 PM

Small Business Flexibility Act

This bill allows 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 current law). 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 119 HR 85, also known as the Tip Income Protection Act, aims to amend the Fair Labor Standards Act of 1938 to allow for the pooling of tips among all employees. This bill would allow employers to distribute tips more equitably among all workers, including those who do not traditionally receive tips, such as kitchen staff and janitors.

The bill seeks to address concerns about wage disparities between front-of-house and back-of-house employees in the service industry. By allowing for tip pooling, all employees would have the opportunity to share in the tips earned by the establishment, promoting a more fair and inclusive work environment.

In addition to tip pooling, the bill also includes provisions to protect employees' rights to their tips and ensure that tips are not being unlawfully withheld by employers. This would help to prevent wage theft and ensure that workers are fairly compensated for their work. Overall, Bill 119 HR 85 aims to promote fairness and equality in the distribution of tips among all employees, while also protecting workers' rights to their hard-earned wages.
Congress
119
Number
HR - 85
Introduced on
2025-01-03
# Amendments
0
Sponsors
+5

Variations and Revisions

1/3/2025
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Small Business Flexibility Act

This bill allows 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 current law). 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 119 HR 85, also known as the Tip Income Protection Act, aims to amend the Fair Labor Standards Act of 1938 to allow for the pooling of tips among all employees. This bill would allow employers to distribute tips more equitably among all workers, including those who do not traditionally receive tips, such as kitchen staff and janitors.

The bill seeks to address concerns about wage disparities between front-of-house and back-of-house employees in the service industry. By allowing for tip pooling, all employees would have the opportunity to share in the tips earned by the establishment, promoting a more fair and inclusive work environment.

In addition to tip pooling, the bill also includes provisions to protect employees' rights to their tips and ensure that tips are not being unlawfully withheld by employers. This would help to prevent wage theft and ensure that workers are fairly compensated for their work. Overall, Bill 119 HR 85 aims to promote fairness and equality in the distribution of tips among all employees, while also protecting workers' rights to their hard-earned wages.
Alternative Names
Official Title as IntroducedTo amend the Fair Labor Standards Act of 1938 to allow the pooling of tips among all employees, and for other purposes.
Policy Areas
Labor and Employment

Comments

Related

Committee:  Education and the Workforce

Recent Activity

Latest Summary2/6/2025

Small Business Flexibility Act

This bill allows 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 current ...

Latest Action1/3/2025
Referred to the House Committee on Education and Workforce.