Illinois Tipped Employee Wage Compliance

Tipped employee wage compliance procedures for Illinois restaurants.

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What this document covers

Illinois has specific rules for tipped employee compensation: $8.40/hr (60% of state minimum; tips must bring total to $14.00/hr; Chicago: no tip credit, full city minimum required). This document covers tip credit calculations, tip pooling rules, required notices to employees, and record-keeping specific to Illinois law.

Key sections included

State tipped minimum wage rate
Tip credit notice requirements
Tip pooling rules and restrictions
Tip credit calculation worksheet
Service charge vs tip distinctions
Record-keeping requirements
Employee acknowledgment forms

Frequently asked questions

What is the tipped minimum wage in Illinois?

$8.40/hr (60% of state minimum; tips must bring total to $14.00/hr; Chicago: no tip credit, full city minimum required).

Who can participate in a tip pool?

Under federal law, only employees who customarily receive tips can participate. Illinois may have additional restrictions — check current state guidance.

Document details

State: Illinois
Legal basis: Illinois Compiled Statutes Title 820 (Employment); FLSA §3(m)
Enforced by: Illinois Department of Labor (IDOL)
Penalty for absence: Back wages, liquidated damages, and penalties under Illinois Compiled Statutes Title 820 (Employment). Class action risk for tip credit violations.
Category: Employment & HR

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