summary
Introduced
02/06/2025
02/06/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
104th General Assembly
Bill Summary
Reinserts the provisions of the introduced bill with the following changes. Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2025 and ending before January 1, 2028, each taxpayer who employs an eligible tipped employee and does not take an allowance against the full minimum wage is entitled to a tax credit in each of those taxable years in an amount equal to the product of $1.50 multiplied by the total number of hours for which an allowance could have been claimed by the employer in the taxable year for eligible tipped employees but was not claimed by the employer in that taxable year. Effective July 1, 2025.
AI Summary
This bill, known as the One Fair Wage with Tips on Top Act, makes significant changes to how gratuities are handled for tipped workers in Illinois. The legislation gradually reduces and ultimately eliminates the tip credit (the amount employers can subtract from minimum wage for employees who receive tips) by July 1, 2027, at which point employers must pay the full minimum wage regardless of tips. The bill introduces new requirements for employers, including mandatory written notices to tipped employees about their pay rates, rights to retain gratuities, and compensation details. Employers will be prohibited from keeping any portion of employee tips, and service charges imposed by employers must be fully distributed to employees. The bill also clarifies that credit card processing fees cannot be deducted from employee tips. Penalties for violations can reach up to $1,500 per day, payable to the Wage Theft Enforcement Fund. Additionally, the legislation mandates that employers post workplace notices about wage rights and provide these notices electronically for remote workers. The changes aim to provide more transparency and financial protection for tipped workers by ensuring they receive their full wages and tips without employer interference.
Committee Categories
Government Affairs
Sponsors (5)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 04/11/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2982&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| House Amendment 001 | https://www.ilga.gov/legislation/104/HB/10400HB2982ham001.htm |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2982.htm |
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