Illinois General Assembly - Full Text of SB3396

LRB104 18590 SPS 32033 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3396

Introduced 2/4/2026, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

820 ILCS 115/4.1

Amends Illinois Wage Payment and Collection Act. Provides that, beginning January 1, 2027, an employer who collects gratuities through electronic means shall compile and submit a quarterly report to the Department of Labor containing specified information concerning the collection and distribution of electronic gratuities. Provides that, beginning January 1, 2027, an employer shall make available on the pay stub provided to any employee who receives gratuities collected through electronic means specified information concerning the collection and distribution of electronic gratuities. Effective January 1, 2027.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Wage Payment and Collection Act is amended by changing Section 4.1 as follows:

(820 ILCS 115/4.1)

Sec. 4.1. Gratuities.

(a) Gratuities to employees are the property of the employees, and employers shall not keep gratuities. Failure to pay gratuities owed to an employee more than 13 days after the end of the pay period in which such gratuities were earned constitutes a violation of this Act.

(b) 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, provided that the amount withheld does not exceed the proportion of the amount of the tip to the amount of the overall bill, regardless of whether the overall bill was paid using a credit card. This Section does not prohibit tip pooling as permitted by law. This Section does not affect an employer's entitlement to an allowance for gratuities to the extent permitted under subsection (c) of Section 4 of the Minimum Wage Law.

(c) Beginning January 1, 2027, an employer who collects gratuities through electronic means, including, but not limited to, gratuities collected through debit cards, credit cards, or other point-of-sale transactions, shall compile and submit a quarterly report to the Department of Labor. The report shall include the following information for the preceding quarter:

(1) the total amount of electronic gratuities collected by the employer on behalf of all employees;

(2) the total amount of electronic gratuities distributed to all employees; and

(3) the total amount and the percentage of electronic gratuities withheld from employees under subsection (b) for credit card processing fees.

(d) Beginning January 1, 2027, an employer shall make available on the pay stub provided to any employee who receives gratuities collected through electronic means:

(1) the total amount of electronic gratuities earned for the pay period before any withholdings;

(2) the total amount of electronic gratuities earned under for the pay period after any withholdings; and

(3) the percentage of electronic gratuities withheld.

(Source: P.A. 101-509, eff. 1-1-20.)

Section 99. Effective date. This Act takes effect January 1, 2027.