Illinois lawmakers, restaurant owners push back at bill to eliminate tip credit for workers
CHICAGO (CBS) – Some lawmakers and restaurant owners are pushing back against efforts in Illinois to eliminate tip credit for workers who get gratuities.
A recently introduced measure in Springfield would no longer allow restaurants to pay tipped employees less than minimum wage.
Businesses can currently pay $8.40 an hour and use tips to make up the difference so an employee gets at least the state-required $14-an-hour minimum wage.
Opponents of the bill warned of dire consequences.
"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 Sam Toia, president and CEO of the Illinois Restaurant Association.
If the bill passes, the law would go into effect on Jan. 1, 2025. The bill is still working its way through the Illinois House Labor Committee.