Illinois Governor JB Pritzker signed new legislation clarifying state law when it comes to employees and their tips. The law amends the Illinois Wage Payment and Collection Act. This law states that gratuities are the property of employees, not employers. Michael Kleinik who is the Director of the Illinois Department of Labor says that the new law leaves no doubt that gratuities belong to the workers who earned them.
The law requires gratuities to be paid to employees within 13 days after the end of the pay period during which the gratuities were earned. Employers are required to pay tipped workers a minimum of 60% of the state’s minimum wage. That wage rose to $9.25/hr on January 1st and will keep going up until it reaches $15/hr in a few years. Tips and wages combined must be equal to at least the minimum wage.
If you are a worker or employer who has a question regarding Illinois Wage payment or the collection act, you can call the Illinois Department of Labor at 312-793-2800. You can also email DOL.Questions@Illinois.gov.