Small Business Flexibility Act

# Small Business Flexibility Act (HR 85) Summary **What the Bill Does** This bill would change federal rules about how businesses can combine and distribute tips among employees. Currently, tips can only be pooled among workers who regularly receive them (like servers and bartenders). The bill would create a second pooling option that allows tips to be shared with a broader group of employees—including those who don't typically receive tips (like kitchen staff or dishwashers), as long as some employees in the pool earn at least minimum wage. **Who It Affects** The bill primarily impacts restaurants, bars, and other service businesses, as well as their employees.

It could benefit workers who don't usually receive tips by giving them a share of pooled gratuities, but could potentially reduce tips for workers who customarily receive them. Consumers who leave tips would also be affected indirectly. **Current Status** The bill is currently in committee and has not yet been voted on by the full House of Representatives. It was introduced by Representative Andy Biggs (R-Arizona) in the 119th Congress.