Senate approves SB73 to make tip pooling permissible for fast-casual establishments

The Utah Senate on Jan. 24 approved Senate Bill 73, a measure sponsored by Senator Pitcher that updates state law to clarify the permissibility of tip pooling in certain food-service businesses.

Senator Pitcher, presenting the bill, said it "seeks to update Utah law to codify the practice of tip pooling," noting Utah's current code addresses tips received by traditionally tipped employees but not point-of-sale tip collections at fast-casual establishments. When asked whether the bill makes pooling mandatory or permissible, Pitcher responded, "Permissible, not mandatory." The Senate passed SB73 with 24 yeas, 1 nay, and 4 absent.

Senators questioned who determines how pooled tips are distributed. Senator Bramble argued the bill could enable business owners to set distributions that disproportionately favor some employees over others. Pitcher replied distribution would be "established at the restaurant's discretion" by the manager or owner and that the code itself is silent on specific percentages.

Senator Wyler asked why a statutory change was needed; Pitcher said the restaurant association requested clarification because the practice, while occurring, was not explicitly authorized in state code. The sponsor indicated willingness to draft a definition of "fast casual" if the body wished to limit the bill's scope.

The debate remained focused on legislative scope and who decides pooled-tip distributions; the bill contains no statutory percentage or mandatory allocation formula. The bill now moves to the House for consideration.

Exchange: Senator Wyler initiated questioning about the necessity of the bill and whether the law needed to change; Senator Pitcher responded that the restaurant association sought statutory clarification. Senator Bramble raised a policy concern about owner-driven distribution affecting individual servers' compensation.