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119-hr-85119th CongressWALLET

Small Business Flexibility Act

Sponsored By: Representative Biggs, Andy [R-AZ-5]

Introduced

Summary

Expands who can be included in tip pools. This bill would amend the Fair Labor Standards Act of 1938 (FLSA) to replace the phrase “employees who customarily and regularly receive tips” with a new, specific definition that lists allowable pools of workers. The new text creates two pool types that can be used for tip pooling, including groups that mix traditional tip earners with certain other employees when conditions on cash wages are met.

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  • Tip-earning employees could have tips shared with a broader set of coworkers under the new pool definitions. Their tips may be pooled with others who meet the statute’s criteria.
  • Non-tipped or mixed-role staff could be included in tip pools when they are placed in the statute’s defined pools, including situations tied to receiving a qualifying cash wage.
  • Employers get clearer flexibility to form tip-pooling groups under federal law. The act does not create new funding or new enforcement mechanisms beyond current law.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Wider tip pooling for workers

If enacted, employers would be allowed to form two kinds of tip pools. One pool could include only workers who regularly get tips. A mixed pool could include non‑tipped workers, but only if the tipped workers in that pool are paid at least the federal minimum wage in cash by the employer. This could change how tips are shared in restaurants and similar jobs. The bill does not specify a start date.

Sponsors & CoSponsors

Sponsor

Biggs, Andy [R-AZ-5]

AZ • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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