Effective January 1, 2020, the Illinois Wage Payment and Collection Act has been amended regarding employee tips/gratuities.

The provisions of the law states as follows:

Gratuities to the employees

• Property of the employees – not the employer.
• Gratuities must be paid to the employee not more than 13 days after the pay period; otherwise it is a violation of the law.

Exceptions under the law

• Employer can withhold gratuities paid by credit card in a proportional amount of any credit card processing fee unless the fee exceeds the tip.
• Employees are permitted by the law to do tip pooling.
• The amendments do not change an employer’s allowance for gratuities to the extent permitted under minimum wage laws.

Based upon the above, Illinois employers should be careful in paying tips to their employees.

Questions? Contact Attorney Anthony J. Caruso, Jr., in our St. Charles office at (630) 377-1554 or by email at ancaruso@wesselsssherman.com