Part of Ferry's 51-state tip laws guide

Illinois tip laws (2026)

Illinois's minimum wage is $15.00 an hour, and the tip credit can't exceed 40% of it, so tipped workers get at least $9.00 in cash. Chicago and covered Cook County towns pay more. Tips belong to the workers, and any owed tips are due within 13 days after the pay period ends.

Researched by Ferry's tip operations research teamReviewed How we research these pages
Rates as of Last reviewed

Illinois at a glance

Tip credit allowed

Illinois: $15.00 an hour minimum wage. Tipped staff can be paid $9.00 cash, with up to $6.00 counted from tips.

Illinois tip and wage rates at a glance, as of Nov 3, 2026
State minimum wage$15.00/hrStatewide from .[1]
Tipped cash wage$9.00Plus up to $6.00 in tips = $15.00.[2]
Max tip credit$6.00Counted from tips.[2]
Tip poolingAllowedMandatory pools allowed.[3][4]
Card-fee deductionPro rata onlyOnly the tip's share of the fee.[3]
Card tip payoutTips owed must be paid within 13 days after the pay period they were earned in ends.Federal payday rules may require sooner.[3]
Local minimum wages2 placesLocal rates on file. See all[5]

Rates verified against the Illinois Department of Labor on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)

02The yes/no sheet

Can you do this in Illinois?

In Illinois you can take a tip credit of up to $6.00 an hour, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.

Yes state law allows itNo state law says noDepends read the conditionFederal rule no state rule, federal applies
What restaurant operators can and can't do with tips in Illinois
NumberCan you…AnswerThe condition
01Take a tip credit against minimum wage?YesPay at least $9.00 cash and count up to $6.00 in tips. Tips must cover the gap.[2]
02Make staff join a tip pool?YesAllowed, as long as only eligible staff share.[4]
03Include bartenders, bussers, runners and hosts?DependsBartender, busser, food runner and host: federal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
04Include cooks and dishwashers?DependsFederally, cooks and dishwashers can join a mandatory pool only when no tip credit is taken. Illinois employers still pay the state minimum.[4]
05Give managers or supervisors a share?NoFederal law bars managers and supervisors from taking other workers' tips. Tips for service they alone provide are separate.[4]
06Let an owner keep any of the tips?NoIn Illinois, tips are the workers' property and employers can't keep them. Federal law says the same.[3]
07Pick your own split (hours, points or percentages)?Yes (federal)Federal rule: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[4]
08Take card processing fees out of tips?Pro rataOnly the share of the card fee that applies to the tip can come out. State and federal minimum wage protections apply.[3]
09Hold card tips until payday?DeadlineTips owed must be paid within 13 days after the pay period they were earned in ends. Federal payday rules may require sooner.[3]
10Cover walkouts, breakage or register shortages from tips?NoNot from tips.[3]
11Keep a mandatory service charge for the house?Federal ruleNo state rule. Federal rule applies: a compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[4]
12Pay tips on a payroll card?DependsWith the worker's consent. Offer another way to get paid too.[6]

03State vs federal

Illinois vs federal law

Illinois sets a stricter rule than federal law on 2 of the 10 rules below, starting with a $15.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.

Illinois tip rules compared with federal rules (FLSA)
RuleFederal (FLSA)IllinoisComparison
Minimum wageStricterFederal$7.25[4]Illinois$15.00[1]Stricter
Tipped cash wageStricterFederal$2.13[4]Illinois$9.00[2]Stricter
Max tip creditHigher creditFederal$5.12[4]Illinois$6.00[2]Higher credit
Who counts as tippedState ruleFederalMore than $30 a month in tips, customarily and regularly received in the occupation.[4]Illinois$20 or more in tips a month under state rules. Federal coverage uses a separate more-than-$30 test.[7]State rule
Managers in the poolFederal appliesFederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[4]IllinoisFederal law bars managers and supervisors from taking other workers' tips. Tips for service they alone provide are separate.[4]Federal applies
Kitchen in the poolState ruleFederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[4]IllinoisFederally, cooks and dishwashers can join a mandatory pool only when no tip credit is taken. Illinois employers still pay the state minimum.[4]State rule
Card fees from tipsSame as federalFederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[4]IllinoisTip's share of the fee only[3]Same as federal
Card tip payoutState ruleFederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[4]IllinoisTips owed must be paid within 13 days after the pay period they were earned in ends. Federal payday rules may require sooner.[3]State rule
Mandatory service chargesFederal appliesFederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[4]IllinoisFederal rule applies.[3]Federal applies
Overtime for tipped staffState ruleFederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[4]IllinoisTime and a half the regular rate after 40 hours. The cash wage alone can't be used as the overtime base.[8]State rule

Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Illinois fits among the four tip credit classes.

04Wages

Minimum wage and the tip credit in Illinois

In Illinois employers can pay tipped staff $9.00 an hour and count up to $6.00 in tips toward the $15.00 minimum. If tips fall short, the employer makes up the difference.[2]

Worked example

One server, one slow 30-hour week in Illinois

Minimum for the week: 30 × $15.00$450.00
Cash wage you pay: 30 × $9.00$270.00
Tips have to cover: 30 × $6.00$180.00
Tips actually earned$120.00
You top up the gap$60.00
Cash wageTips countedYour top-up

A busy week with $180.00 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.

Tip credit conditions
The tip credit can't be more than 40% of the minimum wage. The employer keeps tip records and covers any shortfall.[1]
Who counts as tipped
$20 or more in tips a month under state rules. Federal coverage uses a separate more-than-$30 test.[7]
Overtime
Time and a half the regular rate after 40 hours. The cash wage alone can't be used as the overtime base.[8]
Side work and dual jobs
No state rule. Federal rule applies: current 29 CFR 531.56(e) is the restored 1967 occupation-based dual-jobs rule. No tip credit for a separate non-tipped occupation; related duties within the tipped occupation need not themselves produce tips. The vacated 2021 federal 80/20 and 30-continuous-minute limits are not current regulatory limits. FAB 2026-1 withdraws historical opinion letters and confirms WHD enforcement guidance no longer sets specific time limits; it is agency guidance, not a new statute or regulation.[9][10][3]

Other rates

Other minimum wage rates in Illinois
RateHourly
Local industry Chicago: Restaurants under City contracts or concession agreementsCovered City-contract or concession workers; distinct gratuity allowances apply to tipped concession positions. Next: . Since .[5]$18.50
Youth or training Youth under age 18Fewer than 650 hours for this employer in the calendar year; full rate once threshold is reached.[1]$13.00
Youth or training Adult initial employment without tip creditFirst 90 days on the job. Some exclusions apply, and tipped workers follow different conditions.[1]$14.50

Scheduled increases

No statewide increase with a published amount is on file as of .

How the credit works

The tip credit is a percentage, not a dollar amount

Illinois caps the tip credit at 40% of the minimum wage. On a $15.00 minimum, that's $6.00, which leaves a $9.00 cash wage.[1][2][11][12]

05Local rates

City and county minimum wages in Illinois

2 cities and counties in Illinois set their own minimum wage, from $15.40 in Cook County to $17.05 in Chicago. A restaurant inside one of them pays the local rate, not the $15.00 state rate.[5]

Local rates allowedSorted highest first. Bars start near the state rate, marked with a line.
Local minimum wages in Illinois, 2 rows, sorted highest first
City or countyRatevs state $15.00Tipped cash wageEffective
ChicagoChicago's general rate adjusts every year. The current tipped cash wage is $12.96.[5]$17.05+$2.05 over state$12.96Next change
Cook CountyApplies only in towns that haven't opted out, and many have. The 2027 adjustment amount isn't published yet.[13]$15.40+$0.40 over state$9.25Next change

One local hotel or industry ordinance sets a higher rate for covered workers. It is listed under Other rates.

Local wages

Chicago, Cook County or the state rate

Illinois lets local governments set higher wages, and two big ones do. Which rate applies depends on where the work happens.[5][13][1][2]

Illinois minimum wages, as of July 1, 2026[5][13][1][2]
WhereMinimum wageTipped cash wageWho it covers
Chicago$17.05$12.96Employers with 4 or more employees
Cook County$15.40$9.25Only towns that haven't opted out
Rest of Illinois$15.00$9.00Statewide, adults 18 and older

06Tip pool

Who can be in the tip pool in Illinois

Illinois allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.

Who can share in a tip pool in Illinois, by role
RoleCan share?Condition
Front of house
ServerDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
BartenderDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
BusserDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
Food runnerDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
HostDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
BarbackDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
ExpoDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
Back of house
CookDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
DishwasherDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
Leadership
Shift leadDependsFederal rules decide, based on duties and whether a tip credit is taken. Illinois tip ownership and the state minimum also apply.[4]
Manager or supervisorNot allowedFederal rule bars receiving other workers’ pooled tips.[4]
OwnerNot allowedFederal rule bars receiving other workers’ pooled tips.[4]
Managers and supervisors
Federal law bars managers and supervisors from taking other workers' tips. Tips for service they alone provide are separate.[4]
Owners
In Illinois, tips are the workers' property and employers can't keep them. Federal law says the same.[3]
Back of house
Federally, cooks and dishwashers can join a mandatory pool only when no tip credit is taken. Illinois employers still pay the state minimum.[4]
Who sets the percentages
No state rule. Federal rule applies: employer may set a valid mandatory pool; for a traditional pool it must notify tipped employees of required contribution amounts.[4][3]
Cap on what a pool can take
No state rule. Federal rule applies: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[4][3]
Pooling allowed
Yes.[3]

07Put it to work

Setting up a tip pool in Illinois

Under Illinois rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.

The law decides who's in. You still have to run the split every shift and pay it out. That part is a math and payout job, and it's the same job whether you have one location or forty.
Saturday dinner pool$1,200.00
6 of 10 staff can share in Illinois
By %
By points
By hours
Servers 67.1%Bar 14.6%Support 18.3%
The same $1,200.00 pool split three ways, using roles that can share in Illinois
WhoBy %By pointsBy hours
MayaServer, 6 h, 10 pts$268.29$250.00$211.78
JordanServer, 6 h, 10 pts$268.29$250.00$211.76
PriyaServer, 6 h, 10 pts$268.29$250.00$211.76
SamBartender, 6 h, 8 pts$175.61$200.00$211.76
LuisBusser, 5 h, 5 pts$109.76$125.00$176.47
AvaFood runner, 5 h, 5 pts$109.76$125.00$176.47
TheoCook, 7 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
KimCook, 7 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
RafaDishwasher, 6 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
DanaManager or supervisor, 2 h (ran food)Not in the pool. Federal rule bars receiving other workers’ pooled tips.
Total$1,200.00$1,200.00$1,200.00

Fictional restaurant and staff. The guest-facing staff here are assumed to meet Illinois's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.

Support Pool contributors: Server $262.83 and Bartender $54.92, for a total of $317.75. Support Pool receivers, pooled by Day and distributed by Hours Worked: Jonah Kim, Busser, 6.50 hours, +$179.56. Sofia Nunez, Food Runner, 5.00 hours, +$138.19. Total 11.50 hours and $317.75.

Support pool split. Servers and bartenders pay into the support pool, split by hours worked.
Ferry Tip Manager

Ferry Tip Manager: support pool split by hours

Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.

Who it's for Full-service restaurants that tip out bussers, runners and bar backs

Book a demo See Tip Manager
Run your own numbersPlug your staff and tips into the tip pooling calculator

08Service charges

Service charges vs tips in Illinois

Illinois has no service charge rule of its own. Under federal law a mandatory service charge is not a tip, and any part paid to staff counts as wages.

Tips compared with service charges in Illinois
QuestionOptionalTipMandatoryService charge
Who sets the amountThe guestThe business
Who it belongs toThe worker it was left for, or the poolNo state rule. Federal rule applies: a compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[4][3]
Can it go to staff?Yes, through the poolYes. Amounts paid to staff are wages, not tips.[4]
How it's taxed (federal)Tip income the worker reportsRegular wages, with payroll taxes[14][15]
Guest noticeNone neededNo state rule. Federal law sets no menu or receipt notice rule.[3]
  1. Step 1Did the guest choose whether to pay it, and how much?
    YesIt's a tip. It belongs to staff.
    NoIt's a mandatory charge. Go to step 2.
  2. Step 2What does Illinois say?Federal ruleNo state rule. Federal rule applies: a compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[4][3]
  3. Step 3Check the cityNo city service charge rules on file for Illinois.
Menu and receipt notice
No state rule. Federal law sets no menu or receipt notice rule.[3]
Large-party auto gratuities
No state rule. Federal rule applies: mandatory automatic gratuities are service charges for federal tax purposes, even when distributed to employees; a label does not make the payment voluntary.[14][15][3]

Local service charge rules

No local service charge rules on file for Illinois.

More on the difference: service charge vs tip.

09Card tips

Card tips in Illinois: fees and payout timing

In Illinois only the tip's share of the card processing fee can come out of a card tip. Payout deadline: tips owed must be paid within 13 days after the pay period they were earned in ends. Federal payday rules may require sooner.

Card processing fees
Pro rataOnly the tip's share.

Only the share of the card fee that applies to the tip can come out. State and federal minimum wage protections apply.[3]

When card tips have to land

  1. TonightGuest adds a tip On the card, at the table.
  2. CloseShift is tallied The pool is split by your rules.
  3. DeadlineIllinois rule Tips owed must be paid within 13 days after the pay period they were earned in ends. Federal payday rules may require sooner.[3]
  4. Last dayFinal pay At separation if possible, and no later than the next regular payday.[16]

Paydays: At least twice a month, and no later than 13 days after the pay period ends. Some exceptions apply.[17]

Paying tips on a payroll card

  • Allowed?Depends
  • Worker consent needed?Yes
  • Free way to get the money?State ruleFree full net-pay withdrawal at least once per pay period and twice a month, free monthly history on request, unlimited free phone balance checks.[6]
  • Must you offer another option?Yes
  • Holding cash tipsState ruleTips belong to the workers. Owed tips can't be held more than 13 days past the end of the pay period.[3]
  • Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[18][3]

Alice Anderson, Server, Downtown. Direct tips +$980.25, indirect tips +$0.00, tip outs -$147.07, tips payable $833.18. Tip Payment history, all Automatic with status Success: 2026-10-29 $833.18, 2026-10-28 $783.19, 2026-10-27 $733.20.

Employee tip payout. Each person's direct tips, tip outs, and payable amount, then paid automatically.
Ferry Pay and Pay Card

Ferry Pay: each tip share, paid out digitally

Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.

Who it's for Operators who want to stop the nightly cash run

Book a demo See Ferry PayAbout the Pay Card
Customer story: BJ's Restaurants
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66%+reduction in cash-carrying costs
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Jake Guild, Senior Vice President & Chief Accounting Officer, BJ's Restaurants
Read the BJ's case study

10Records

Records and notices in Illinois

Keep each tipped worker's tips and hours on record, shift by shift. Illinois: keep pay-stub copies at least 3 years after payment, even after a worker leaves.

Illinois State

  • Tip records Track tipped workers, daily tip reports, credit claimed, and hours in tipped and non-tipped work. Regular payroll records and pay stubs too.[12]
  • How long to keep them Keep pay-stub copies at least 3 years after payment, even after a worker leaves. Other payroll record rules still apply.[19]
  • Tip credit notice Required. Tell workers in writing whenever the hourly tip credit changes from the last pay period. FLSA-covered employers also give the federal notice.[12]
  • Posters and forms Illinois Your Rights Under Illinois Employment Laws poster.[20]

Everywhere Federal

  • Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[4]
  • How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[21]
  • Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[4]
  • A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
For workers

Think your tips were handled wrong in Illinois?

Workers in Illinois can file a tip or wage claim with the Illinois Department of Labor (312-793-2804). Filing is free, and this page can't settle a dispute; the state can.[22]

Illinois Department of Labor
Phone
312-793-2804[22]
Website
labor.illinois.gov/laws-rules/fls/minimum-wage-law.html
How to file a claim

Retaliation: Retaliating against a worker for using wage-payment rights is illegal. The state takes retaliation complaints within one year.[23]

Penalties: Unpaid amounts plus 5% a month in damages. Lawsuits can also recover costs and attorney fees, with more penalties possible.[24]

Can they take this out of my tips?

  • Walkouts and dine-and-dashNot allowedNot allowed. Tips belong to the workers, and employers can't use them to cover business costs.[3]
  • BreakageNot allowedNot allowed. Tips belong to the workers, and employers can't use them to cover business costs.[3]
  • Register shortagesNot allowedNot allowed. Tips belong to the workers, and employers can't use them to cover business costs.[3]
  • UniformsNot allowedNot allowed. Tips belong to the workers, and employers can't use them to cover business costs.[3]
  • Card processing feesAllowedOnly the proportional card-processing charge attributable to the gratuity.[3]
  • A manager's shareNot allowedEmployers/managers cannot retain employees’ tips.[3]

11Law changes

What changed in Illinois tip law, and what's coming

No statewide increase with a published amount is on file for Illinois as of . Most recent change: Statewide adult minimum reached $15.00 and the tipped cash wage $9.00. Illinois also added pay-stub production and retention requirements effective 2025 ().

  1. ChangedStatewide adult minimum reached $15.00 and the tipped cash wage $9.00. Illinois also added pay-stub production and retention requirements effective 2025.[1]

Bills and ballot measures

Nothing pending as of .

Key statutes

  • 820 ILCS 105/4 and 4a
  • 820 ILCS 115/4.1, 5, 9, 10, 14 and 14.5
  • 56 IAC 210.110 and 210.720
  • 56 IAC 300.820 and 300.840

12FAQ

Illinois tip law questions

Plain answers to the 7 questions restaurant owners and staff ask most about Illinois tip law, each linked to its source.

What is the tipped minimum wage in Illinois?

At least $9.00 an hour in cash, with tips bringing the total to the $15.00 minimum. Chicago and covered Cook County towns set higher rates.[1][2][5][13]

What is Chicago's tipped minimum wage?

$12.96 an hour in cash as of July 1, 2026, on a $17.05 general minimum for employers with 4 or more workers.[5]

Who owns the tips, the restaurant or the server?

The workers. Illinois law makes tips the employees' property, and employers can't keep them. Lawful tip pools are still allowed.[25]

Can card fees come out of tips?

Only the share of the processing fee that applies to the tip. Nothing more, and federal wage protections still apply.[25][4]

When does a restaurant have to pay out tips?

Within 13 days after the end of the pay period the tips were earned in. Federal payday rules can require sooner.[25][4]

Can wages go on a payroll card?

Yes, with conditions. The worker has to agree in writing or electronically, get another payment option and get free access to their wages.[25]

When is a final paycheck due?

At separation if possible, and no later than the next regular payday.[25][26]

13Compare

How Illinois compares with nearby states

Illinois borders Iowa, Indiana, Kentucky, Michigan, Missouri and Wisconsin. None of the neighbors with a page pays a higher minimum wage than Illinois's $15.00. Running locations on both sides of a line? Each one follows its own state's rules.

Neighboring states

States with the same rules

Same tip credit class as Illinois: Tip credit, cash wage above federal.

Compare all states in one table

The law decides who's in. Ferry runs the split.

See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Illinois setup.

Book a demo Try the tip pooling calculator

14Sources

Sources for Illinois tip laws

Every figure on this page links to one of these 26 sources: 20 for Illinois and 6 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.

  1. 1Minimum Wage and Overtime FAQIllinois Department of Labor · Official source · Checked Pinpoint: Question 1, 820 ILCS 105/4; Question 2; Question 1labor.illinois.gov/faqs/minimum-wage-overtime-faq.html
    What the source says

    “Beginning January 1, 2025, the minimum wage in Illinois is $15.00 per hour for those individuals who are 18 years and older.”

    “Starting January 1, 2025, tipped employees must be paid minimum wage, but an employer may take credit for the employee's tips in an amount not to exceed 40% of the wages.”

    “Those under 18 years of age may be paid at the rate of $13.00 per hour for less than 650 hours worked for an employer in a calendar year.”

  2. 2Minimum Wages for Tipped Employees July 1 2026United States Department of Labor · Official source · Page updated · Checked Pinpoint: Illinois row, above-federal cash wage groupwww.dol.gov/agencies/whd/state/minimum-wage/tipped
    What the source says

    “Illinois $15.00 40% of the applicable minimum wage ($6.00) $9.00 Not specified”

  3. 3820 ILCS 115/4.1 GratuitiesIllinois General Assembly · Official source · Page updated · Checked Pinpoint: 820 ILCS 115/4.1(b); 820 ILCS 115/4.1(b), opening clauseftp.ilga.gov/ILCS/Ch%200820/Act%200115/082001150K4.1.html
    What the source says

    “Gratuities to employees are the property of the employees, and employers shall not keep gratuities.”

    “This Section does not prohibit tip pooling as permitted by law.”

    “This Section does not prohibit an employer from withholding from gratuities paid by credit card a proportionate amount of any credit card processing fees that the employer must pay in connection with the transaction,”

  4. 4Fact Sheet 15 Tipped Employees Under the FLSAUnited States Department of Labor · Official source · Checked Pinpoint: Federal Tip pooling rule; state 4.1(b) preserves lawful pools; Federal Fact Sheet 15, Traditional/Other Tip Poolingwww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
    What the source says

    “The FLSA allows employers to require employees to share or “pool” tips with other eligible employees.”

    “As explained below, the rules governing tip pools depend on whether the employer pays a direct (or cash) wage equal to the full minimum wage to tipped employees or not.”

    “An employer may not receive tips from such a tip pool and may not allow managers and supervisors to receive tips from the pool.”

  5. 5Chicago Minimum Wage Current Rates and NoticesCity of Chicago Business Affairs and Consumer Protection · Official source · Checked www.chicago.gov/city/en/depts/bacp/supp_info/minimumwageinformation.html
    What the source says

    “As of July 1, 2026, the Minimum Wage to be paid under City contracts or concessionaire agreements is $18.50 per hour.”

    “As of July 1, 2026, the minimum wage in Chicago is $17.05 per hour for employers with 4 or more employees.”

  6. 6820 ILCS 115/14.5 Payroll cardsIllinois General Assembly · Official source · Page updated · Checked Pinpoint: 820 ILCS 115/14.5; 820 ILCS 115/14.5(2)(C); 820 ILCS 115/14.5(3)(A)ftp.ilga.gov/ILCS/Ch%200820/Act%200115/082001150K14.5.html
    What the source says

    “An employer using a payroll card to pay an employee's wages shall meet the following requirements:”

    “the employer obtains the employee's voluntary written or electronic consent to receive the wages by payroll card.”

    “at least one method of withdrawing the employee's full net wages from the payroll card once per pay period, but not less than twice per month, at no cost to the employee, at a location readily available to the employee;”

  7. 756 IAC 210.110 DefinitionsIllinois General Assembly · Official source · Page updated · Checked Pinpoint: Section 210.110, Tipped employee definitionftp.ilga.gov/JCAR/AdminCode/056/056002100A01100R.html
    What the source says

    “an employee cannot be deemed a tipped employee unless the employee received $20 or more per month in gratuities.”

  8. 856 IAC 210.420 Regular Rate of Pay for Determination of OvertimeIllinois General Assembly · Official source · Checked Pinpoint: 56 IAC 210.420(a); 105/4a weekly 40-hour trigger; agency FAQ 3ftp.ilga.gov/JCAR/AdminCode/056/056002100D04200R.html
    What the source says

    “The regular rate of pay at which the employee is employed shall in no event be less than the statutory minimum.”

  9. 9Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3; Regulatory History, item 4; Tip regulation topics listwww.dol.gov/agencies/whd/flsa/tips
    What the source says

    “a federal court vacated the revision, with the effect of reinstating the Department’s original dual jobs regulation.”

    “On December 16, 2024, the Department announced a technical rule to restore the original dual jobs regulation at 29 CFR 531.56(e) .”

    “29 CFR 531.56(e) ); and Calculating overtime pay for tipped employees ( 29 CFR 531.60 ).”

  10. 10Field Assistance Bulletin No. 2026-1U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: p. 1, introductory paragraphs; p. 1, introductionwww.dol.gov/sites/dolgov/files/WHD/fab/fab2026-1.pdf
    What the source says

    “These withdrawn opinion letters and the FOH provision that implemented them should no longer be relied upon as WHD enforcement guidance.”

    “withdrawn on January 14, 2025 (see WHD FOH Revision 785), no longer reflects the Division’s policy or interpretation of the Act.”

    “This Field Assistance Bulletin (FAB) withdraws Wage and Hour Division (WHD or Division) Opinion Letters FLSA-895 (Aug. 8, 1979); WH-502 (Mar. 28, 1980); and FLSA-854, 1985 WL 1259240 (Dec. 20, 1985).”

  11. 1156 Illinois Administrative Code Part 210 Minimum Wage LawIllinois General Assembly · Official source · Checked ilga.gov/agencies/JCAR/EntirePart?titlepart=05600210
  12. 1256 IAC 210.720 Minimum Records of GratuitiesIllinois General Assembly · Official source · Checked Pinpoint: Sections 210.110/.720ftp.ilga.gov/JCAR/AdminCode/056/056002100G07200R.html
    What the source says

    “The amount per hour which the employer takes as a gratuity credit shall be reported to the employee in writing each time it is changed from the amount per hour taken in the preceding pay period.”

    “Section 210.720 Minimum Records of Gratuities”

  13. 13Cook County Minimum Wage Ordinance and RegulationsCook County Commission on Human Rights · Official source · Checked Pinpoint: FAQ 3 annual July 1www.cookcountyil.gov/service/minimum-wage-ordinance-and-regulations
    What the source says

    “The minimum wage for tipped workers is $9.25 per hour for standard work hours”

  14. 14Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
    What the source says

    “Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”

    “For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”

    “These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”

  15. 15Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
    What the source says

    “compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”

    “Rev. Rul. 2012-18”

  16. 16820 ILCS 115/5 Final compensationIllinois General Assembly · Official source · Checked ftp.ilga.gov/ILCS/Ch%200820/Act%200115/082001150K5.html
    What the source says

    “Every employer shall pay the final compensation of separated employees in full, at the time of separation, if possible, but in no case later than the next regularly scheduled payday for such employee.”

  17. 17820 ILCS 115/4 Payment timingIllinois General Assembly · Official source · Checked Pinpoint: 115/3 semi-monthly minimum; 7-day weekly and 24-hour daily exceptionsftp.ilga.gov/ILCS/Ch%200820/Act%200115/082001150K4.html
    What the source says

    “All wages earned by any employee during a semi-monthly or bi-weekly pay period shall be paid to such employee not later than 13 days after the end of the pay period in which such wages were earned.”

  18. 18Questions and Answers About the FLSA, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: Recordkeeping and Notices, Are pay stubs required?www.dol.gov/agencies/whd/flsa/faq
    What the source says

    “However, the FLSA does not require an employer to provide employees pay stubs.”

  19. 19820 ILCS 115/10 Records notices and paystubsIllinois General Assembly · Official source · Page updated · Checked Pinpoint: 820 ILCS 115/10(c)ftp.ilga.gov/ILCS/Ch%200820/Act%200115/082001150K10.html
    What the source says

    “An employer shall maintain a copy of an employee's pay stub for a period of not less than 3 years after the date of payment,”

  20. 2056 IAC 210.750 Posting RequirementsIllinois General Assembly · Official source · Page updated · Checked ftp.ilga.gov/JCAR/AdminCode/056/056002100G07500R.html
    What the source says

    “a notice, to be prepared or approved by the Director in various languages, summarizing the requirements of the Act and information pertaining to the filing of a complaint.”

  21. 21Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
    What the source says

    “Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”

    “Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”

    “Records on which wage computations are based should be retained for two years,”

  22. 22Minimum Wage Law and Current RatesIllinois Department of Labor · Official source · Checked Pinpoint: Page heading; Contact sectionlabor.illinois.gov/laws-rules/fls/minimum-wage-law.html
    What the source says

    “Illinois Department of Labor”

    “Minimum Wage Law”

    “Minimum Wage/Overtime Information: (312) 793-2804”

  23. 2356 IAC 300.1220 Retaliation complaintsIllinois General Assembly · Official source · Page updated · Checked Pinpoint: 56 IAC 300.1220(a); 820 ILCS 115/14(c)ftp.ilga.gov/JCAR/AdminCode/056/056003000I12200R.html
    What the source says

    “Complaints shall be filed within one year from the date of the alleged discriminatory action.”

  24. 24820 ILCS 115/14 PenaltiesIllinois General Assembly · Official source · Page updated · Checked Pinpoint: other subsections assessedftp.ilga.gov/ILCS/Ch%200820/Act%200115/082001150K14.html
    What the source says

    “damages of 5% of the amount of any such underpayments for each month following the date of payment during which such underpayments remain unpaid.”

  25. 25Illinois Wage Payment and Collection Act 820 ILCS 115Illinois General Assembly · Official source · Checked www.ilga.gov/Legislation/ILCS/Articles?ActID=2402&ChapterID=68
  26. 26Wage Payment and Collection Act FAQIllinois Department of Labor · Official source · Checked labor.illinois.gov/faqs/wage-payment-faq.html

15Methodology

How we research these pages

Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.

  1. 1

    Official sources only

    Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.

  2. 2

    Every figure is linked

    Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.

  3. 3

    Re-checked on a schedule

    Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.

  4. 4

    Gaps are left out, not guessed

    If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.

What changed on this page

  1. First version of this page. Every figure was checked against the official sources listed on this page.

Researched by Ferry's tip operations research team. Last reviewed .

Changes to the law itself are listed in What changed and what's coming.

16Every state

Tip laws in every state

Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.

  • No tip creditNo tip credit
  • Above $2.13Tip credit, cash wage above federal
  • $2.13 cashTip credit, federal cash wage
  • FederalFederal rates apply

51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.