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House Bill 5345 from state Rep. Lisa Hernandez, D-Cicero, would
mandate that tipped workers are paid at least minimum wage, not
including tips.
The minimum wage for tipped employees is $8.40, with employers
required to make up the difference if tips don’t boost the pay
rate to the standard minimum wage.
Hernandez said workers in the service industry are struggling.
“Even with a strong economy across the state, when I talk to
many of my constituents I know folks are as worried as ever as
to how they're going to pay their bills,” said Hernandez.
Sam Toia, president of the Illinois Restaurant Association, said
the current system is working and servers earn on average about
$28 an hour.
“If this legislation becomes law, here’s what we can expect:
Layoffs for servers, bartenders, bussers and runners, fewer
hours for servers, and higher costs at the table for the
consumer,” said Toia.
He adds that a recent survey shows that 87% of service workers
want to keep the current tipping system.
Chicago enacted similar legislation last year, which phases out
the city’s tip credit over the span of five years.
With the spring legislative session scheduled to adjourn Friday,
the bill has not been called for a vote in either chamber.
Hernandez vows to reintroduce the measure during the next
legislative session.
“Eliminating the tip credit in Illinois would not only harm our
hospitality industry and hardworking tipped employees but also
inflict a negative trickle effect on businesses across various
sectors,” said Peter Tokar, president of the Quad Cities Chamber
of Commerce. “This legislation threatens to increase operational
costs for businesses, leading to potential job losses and
decreased consumer spending."
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