Indiana legislation · 2026 Regular Session
Indiana SB245: Tip pooling.
Status: Signed into law, February 24, 2026
Specifically authorizes the use of tip pooling arrangements under certain circumstances.
What the bill says
An act to amend the Indiana Code concerning labor and safety.
From the enrolled text:
AN ACT to amend the Indiana Code concerning labor and safety. SECTION 1. IC 22-2-2-14.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JUNE 27, 2024 (RETROACTIVE)]: Sec. 14.1. (a) The following definitions apply throughout this section: (1) "Manager or supervisor" means any employee: (A) whose primary duty is managing the enterprise or a customarily recognized department or subdivision of the enterprise; (B) who customarily and regularly directs the work of two (2) or more other full-time employees or their equivalent; and (C) who has the authority to hire or fire other employees, or whose suggestions and recommendations as to the hiring or firing are given particular weight. The term includes a business owner who owns at least a bona fide twenty percent (20%) equity interest in the enterprise in which the owner is employed and who is actively engaged in its management. (2) "Nontipped employee" means a person employed in an occupation in which the person does not customarily and regularly receive tips, such as a dishwasher, cook, or janitor. The term does not include a manager or supervisor, even if SEA 245 the manager or supervisor would otherwise be considered a tipped or nontipped employee. (3) "Tip" means a sum presented to an employee by a customer as a gift or …
Sponsors
- Aaron Freeman (R, SD-032) · primary sponsor
- Linda Rogers (R, SD-011)
Latest actions
- : Signed by the President of the Senate
- : Public Law 15
- : Signed by the Governor
- : Signed by the Speaker
- : Signed by the President Pro Tempore
- : Returned to the Senate without amendments
- : Third reading: passed; Roll Call 268: yeas 90, nays 0
- : Representative Isa added as cosponsor
- : Representative Garcia Wilburn added as cosponsor
- : Second reading: ordered engrossed
Votes
- SB0245.03.COMH (February 17, 2026): 90 yea, 0 nay, passed
- SB0245.02.COMS (January 22, 2026): 44 yea, 1 nay, passed
Subjects: LABOR AND EMPLOYMENT; Collective Bargaining, Benefits, and Wages, BUSINESS ORGANIZATIONS AND ASSOCIATIONS; Generally, LABOR AND EMPLOYMENT; Generally
Common questions
- What is SB245?
- SB245 is a bill in the Indiana Legislature (2026 Regular Session): Tip pooling.
- What does SB245 do?
- In its own words: An act to amend the Indiana Code concerning labor and safety.
- What is the status of SB245?
- Signed into law as of February 24, 2026. Latest action: Signed by the President of the Senate (February 24, 2026).
- Who sponsored SB245?
- Aaron Freeman (R, SD-032), with 1 co-sponsor.
- Where is the official record for SB245?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/senate/245
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.