(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.
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