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IndianaSB 245Second Regular Session 124th General Assembly (2026)SenateWALLET

Tip pooling.

Sponsored By: Aaron Freeman (Republican)

Signed by Governor

pensions and laborthe houseemployment

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

New rules for workplace tip pools

Employers can require tip pools. If tips are shared only with tipped workers, they must tell you the required share, cannot keep any tips, and can take a tip credit only on tips you actually get. If everyone earns at least the minimum wage, pools can include both tipped and nontipped staff. Employers, managers, and supervisors can never take money from the pool. These rules apply starting June 27, 2024.

Who counts as tipped or manager

The law defines who is a manager or supervisor. It includes people who run the business, direct two or more workers, and hire or fire. A 20% or more owner active in management also counts. Managers and supervisors are not treated as tipped workers and are excluded from tip pools. Courts look at job duties and how the work affects tipping to decide if a job is a tipped job. Work that supports the service can count, and direct customer contact is not required. These definitions apply beginning June 27, 2024.

Tip rules apply retroactively June 2024

The law applies retroactively to June 27, 2024, and takes effect immediately. It is meant to fix a legal issue after a June 28, 2024 Supreme Court ruling. The tip‑pooling rules count from that June 27 date.

Sponsors & Cosponsors

Sponsor

  • Aaron Freeman

    Republican • Senate

Cosponsors

  • Heath VanNatter

    Republican • House

  • Linda Rogers

    Republican • Senate

  • Tony Isa

    Republican • House

  • Victoria Garcia Wilburn

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 134 • No: 1

House vote • 2/17/2026

Roll Call 268 on SB0245.03.COMH

Yes: 90 • No: 0 • Other: 2

Senate vote • 1/22/2026

Roll Call 60 on SB0245.02.COMS

Yes: 44 • No: 1 • Other: 2

Actions Timeline

  1. Signed by the Governor

    2/24/2026Senate

  2. Signed by the President of the Senate

    2/24/2026Senate

  3. Public Law 15

    2/24/2026Senate

  4. Signed by the Speaker

    2/23/2026House

  5. Signed by the President Pro Tempore

    2/19/2026Senate

  6. Returned to the Senate without amendments

    2/18/2026House

  7. Representative Garcia Wilburn added as cosponsor

    2/17/2026House

  8. Representative Isa added as cosponsor

    2/17/2026House

  9. Third reading: passed; Roll Call 268: yeas 90, nays 0

    2/17/2026House

  10. Second reading: ordered engrossed

    2/16/2026House

  11. Committee report: do pass, adopted

    2/12/2026House

  12. First reading: referred to Committee on Employment, Labor and Pensions

    1/28/2026House

  13. Referred to the House

    1/23/2026Senate

  14. House sponsor: Representative VanNatter

    1/22/2026Senate

  15. Third reading: passed; Roll Call 60: yeas 44, nays 1

    1/22/2026Senate

  16. Second reading: ordered engrossed

    1/20/2026Senate

  17. Committee report: do pass, adopted

    1/15/2026Senate

  18. First reading: referred to Committee on Pensions and Labor

    1/8/2026Senate

  19. Authored by Senators Freeman, Rogers

    1/8/2026Senate

Bill Text

  • Enrolled Senate Bill (S)

    PDF

  • Introduced Senate Bill (S)

    PDF

  • Senate Bill (H)

    PDF

  • Senate Bill (S)

    PDF

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