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Legislation to eliminate the tip credit in the entire State of Illinois as early as January 1, 2025, was introduced in Springfield this month. This legislation would affect all businesses in the State, including the City of Chicago, by pre-empting the 5-year phase out of the tip credit passed last year in the City.
Bill Summaries
HB5345 Sponsored by Rep. Elizabeth "Lisa" Hernandez (D-Cicero), Eliminates the tip credit statewide on January 1, 2025. Preempts home rule.
SB3776 Sponsored by Sen. Lakesia Collins (D-Chicago), says from July 1, 2024, through June 30, 2026, the tip credit allowance would be lowered from 40% to 20%. Starting on July 1, 2026, the tip credit would be eliminated entirely statewide. Bans an employer from withholding from gratuities 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.
Roundtables
The IRA is hosting roundtables around the state to bring restaurant operators and employees together to organize against this legislation. Please join us and share the invitation with industry peers and workers. Our confirmed events include:
Oak Brook, March 12, 2:00pm
Lucca Osteria, 1415 W. 22nd St., Oak Brook, IL 60523
Lake Forest, March 13, 2:00pm
Sophia Steak, 181 E. Laurel Ave., Lake Forest, IL 60045
Peoria, March 19, 2:00pm
Obed and Isaac’s Microbrewery Peoria, 321 NE Madison Ave., Peoria, IL 61603
St. Charles, March 27, 2:00pm
Alter Brewing + Kitchen, 12 S. 1st Street, St. Charles, IL 60174
McHenry County, April 11, Time TBD
1776 Restaurant, 397 W. Virginia St., Crystal Lake, IL 60014
Please email Christine DeSousa at cdesousa@illinoisrestaurants.org to RSVP.
Other Ways to Get Involved
Click here and sign up to join our fight! Please pass this link around to your restaurant industry friends and employees to sign up as well.
Click here to find your state legislators. Click here for talking points to help you explain what the elimination of the tip credit would mean to your business.
The IRA is doing everything possible to fight this misguided legislation. For more information and to join our team and lend your support, please fill out this form or contact Andy Peters.
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