HB3405 EngrossedLRB101 08167 JLS 53233 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Wage Payment and Collection Act is
5amended by adding Section 4.1 as follows:
 
6    (820 ILCS 115/4.1 new)
7    Sec. 4.1. Gratuities.
8    (a) Gratuities to employees are the property of the
9employees and employers shall not keep gratuities. Failure to
10pay gratuities owed to an employee more than 13 days after the
11end of the pay period in which such gratuities were earned
12constitutes a violation of this Act.
13    (b) This Section does not prohibit an employer from
14withholding from gratuities paid by credit card a proportionate
15amount of any credit card processing fees that the employer
16must pay in connection with the transaction, provided that the
17amount withheld does not exceed the proportion of the amount of
18the tip to the amount of the overall bill, regardless of
19whether the overall bill was paid using a credit card. This
20Section does not prohibit tip pooling as permitted by law. This
21Section does not affect an employer's entitlement to an
22allowance for gratuities to the extent permitted under
23subsection (c) of Section 4 of the Minimum Wage Law.