Montana Governor Greg Gianforte has signed legislation (Senate Bill 190) that amends the state's mandatory tip pooling rules. Senate Bill 190 is effective immediately.
Background:
Montana permits employers to establish mandatory tip pools as long as they:
- Notify employees of all mandatory tip-pooling arrangements; and
- Gather and reallocate tips in the pool no later than the regular payday of the workweek in which the employer collects the tips.
Limits:
Senate Bill 190 amends the Montana Wage Protection Act to prohibit employers from requiring employees to contribute more than the amount they receive in tips to a tip pool.
Covered Employees:
Employers may require employees involved in providing customer service or food preparation to pool their tips. This includes, but is not limited to, bussers, cooks, dishwashers, hosts, and servers.
Senate Bill 190 prohibits exempt salaried supervisors or managers from participating in tip-pooling. However, these employees may keep the tips they receive directly from customers based on the service directly provided by them.
Recordkeeping:
Senate Bill 190 requires employers to maintains payroll and other records showing the tips received and distributed to employees under the tip-pooling arrangement.
Compliance Recommendations:
Montana employers should review their pay and tip-pooling policies and procedures to ensure compliance with Senate Bill 190. Please contact your dedicated service professional with any questions.