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

Tip pooling.

Sponsored By: Aaron Freeman (Republican)

Signed by Governor

Summary

Specifically authorizes the use of tip pooling arrangements under certain circumstances.

pensions and laborthe houseemployment

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Bill Overview

Analyzed Economic Effects

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

Workers face tip-sharing rules and protections

Indiana's tip-pooling law is effective June 27, 2024, and applies retroactively. Employers can require tipped workers to share tips with other tipped workers. Required pools can include workers who do not usually receive tips only when the employer pays at least minimum wage. Employers must tell workers how much they must contribute and cannot keep workers' tips. In tipped-only pools, employers can claim a tip credit only for tips each worker ultimately receives. This credit counts tips toward the employer's minimum-wage obligation. Employers, managers, and supervisors cannot receive pooled tips. Managers and supervisors include employees whose main duty is management, who regularly direct at least two full-time workers or their equivalent, and who have hiring or firing authority or recommendations given particular weight. The definition also includes active managers who own at least 20% of the business. Neither tipped nor nontipped worker categories include managers or supervisors. When deciding whether a job regularly receives tips, courts must consider how duties, efficiency, and service affect customers' willingness to tip. Direct customer contact is neither required nor decisive. Tips are voluntary customer gifts for service; mandatory service charges do not count.

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

Third reading: passed

Yes: 90 • No: 0

Senate vote • 1/22/2026

Third reading: passed

Yes: 44 • No: 1

Actions Timeline

  1. Signed by the President of the Senate

    2/24/2026Senate
  2. Public Law 15

    2/24/2026Senate
  3. Signed by the Governor

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

    2/17/2026House
  8. Representative Isa added as cosponsor

    2/17/2026House
  9. Representative Garcia Wilburn added as cosponsor

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

    1/22/2026Senate
  15. House sponsor: Representative VanNatter

    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)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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