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Tipped Employees in Illinois

Filed under Office & HR.

Employers in Illinois must conform with these state rules regarding the treatment of tips received by employees.

In Illinois, in occupations where gratuities constitute a part of the remuneration, the employer is entitled to a tip credit for gratuities as part of the employee's hourly wage rate in an amount not to exceed 40 percent of the applicable minimum wage.

Employers taking a tip allowance are required to provide substantial evidence that the amount claimed as tips was received by the employee in the period for which the claim of exemption is made and that no part of that amount was returned to the employer.

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