Indiana law lets employers require tip sharing under specific rules

Employers may require tipped workers to share tips with other tipped workers. This applies to workers whose jobs regularly involve receiving tips. Employers must tell workers how much they must contribute. Employers may count only tips each worker ultimately receives toward a tip credit, and may not keep any tips for another purpose. Managers and supervisors may not receive tips from a tip pool. The section applies retroactively to June 27, 2024.

Employers may require tipped workers to share tips with tipped and nontipped workers. Nontipped workers are people in jobs that do not regularly involve receiving tips, such as dishwashers, cooks, or janitors. The employer must pay employees at least the minimum wage. Employers must tell workers how much they must contribute and may not keep tips for another purpose. Managers and supervisors may not receive tips from a tip pool. The section applies retroactively to June 27, 2024.

A fact-finder must consider how a worker's duties, efficiency, and service affect customers' willingness to tip when deciding whether the worker is tipped. This applies when deciding whether a worker's job regularly involves receiving tips. Work that directly supports or performs the service customers tip for may count, even if the worker does not personally perform that service. Direct customer contact is neither required nor decisive. The section applies retroactively to June 27, 2024.