Amends the Minimum Wage Law. Provides that, on and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in the Act. Provides for additional notice requirements that employers must provide to employees who receive gratuities. Provides that any employer or his agent, or the officer or agent of any private employer who violates that provision shall be liable to the Department of Labor for a penalty of up to $1,500 per day for each violation, payable to the Department's Wage Theft Enforcement Fund. Provides that every employer shall provide each employee who receives gratuities a notice containing specified information concerning the rate of pay. Amends the Illinois Wage Payment and Collection Act. Provides that no employer shall withhold from gratuities paid by credit card any credit card processing fees that the employer must pay in connection with the transaction. Provides that any service charge imposed by an employer on a customer shall be a gratuity and is the property of the employees. Effective July 1, 2025.
House Committee Amendment No. 1: Replaces everything after the enacting clause. 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.

Statutes affected:
Introduced: 820 ILCS 105/4, 820 ILCS 105/9, 820 ILCS 105/11, 820 ILCS 115/4