Indiana
Discussion
Indiana: Tip Pool Law is Retroactive to 2024
On February 24, 2026, Indiana enacted SB 245, which amends the state labor code to expressly authorize tip pooling arrangements, retroactive to June 27, 2024. Previously, tip pooling had been permitted only under nonbinding guidance from the Indiana Department of Labor. Under the amended law, the rules governing tip pools depend on whether the employer takes a tip credit. If the employer takes a tip credit, tips may only be shared among tipped employees, and the employer must notify employees of any required contribution amount. Employers may only take a tip credit for tips each employee actually receives. If the employer pays all employees at least the full minimum wage, tips may be shared among both tipped and non-tipped employees, provided employees are notified of contribution amounts. A “tipped employee” means a person employed in an occupation in which the person customarily and regularly receives tips (e.g., waiter, bellhop, bartender, or counter server), and a “non-tipped employee” means a person employed in an occupation in which the person does not customarily and regularly receive tips (e.g., dishwasher, cook, or janitor). Indiana employers utilizing tip pools should review their current arrangements for compliance with the updated requirements.
Indiana: Amended Unemployment Insurance Notice and Eligibility Requirements
Beginning July 1, 2026, SB 162 requires Indiana employers to notify the Department of Workforce Development when an employee is separated from employment under certain conditions, including voluntary resignation without good cause, discharge for just cause or gross misconduct, separation due to a physical condition, or departure to accept other employment or enter self-employment. Employers must also notify the Department when a separated claimant is entitled to vacation pay, payment in lieu of vacation, standby pay, wages in lieu of notice, or retirement pay, or when the employer is aware of other circumstances that may be potentially disqualifying. The amendment also clarifies continuing eligibility requirements for claimants. Indiana employers should review their separation notification procedures for compliance with the updated requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase