(The Center Square) – Legislation that would eliminate the tip credit in Illinois is facing opposition from members of the service industry.
Under the current system, businesses pay a portion of the tipped employee’s hourly minimum wage, with the rest being made up by tips to equal at least the full state-mandated minimum wage. The base wage for tipped employees in Illinois is currently $8.40 per hour, and minimum wage is $14 per hour. If employees do not make at least $14 per hour with combined base wage and tips, businesses are required by law to pay the difference to ensure that every tipped worker makes at least minimum wage.
The group One Fair Wage said if passed, House Bill 5345 could boost pay for nearly 200,000 Illinoisans who earn a minimum wage that is 40% less than other workers. State Rep. Lisa Hernandez, D-Cicero, sponsors HB5345. The measure
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