Small Business Flexibility Act

The Small Business Flexibility Act (HR 85) amends the Fair Labor Standards Act to change tip pooling rules. It allows tip pools to include two types of employees: (1) those who customarily and regularly receive tips, and (2) a new category defined as employees who both customarily and regularly receive tips (while being paid at least the minimum wage) and do not customarily and regularly receive tips. This change aims to give small businesses more flexibility in managing tip distributions. The bill specifically targets how tips can be shared among staff, affecting restaurants and similar businesses where tipping is common.