Small Business Flexibility Act

This bill changes tip-sharing rules so more workers can be included in tip pools. It creates two types of pools: one for workers who regularly get tips, and another that can include both (a) tipped workers who are paid at least the full minimum wage in cash and (b) workers who don’t usually get tips, like some kitchen or support staff. In short, if tipped workers are paid at least minimum wage by the employer, tips can be shared with non-tipped coworkers too .

Key points:

• Who is affected: Restaurants and other service businesses with tipped workers; both front-of-house and some back-of-house staff could be included in tip pools.
• What changes: Tip pools are allowed for (1) tipped workers, and (2) tipped workers paid at least minimum wage plus non-tipped workers, expanding who can share tips .
• Why it matters: More employees may receive a share of tips, potentially raising pay for workers who don’t usually get tips.