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.


LRB104 18590 SPS 32033 b

 
 
A BILL FOR
 
SB3396LRB104 18590 SPS 32033 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Wage Payment and Collection Act is 
5amended by changing Section 4.1 as follows:
 
6    (820 ILCS 115/4.1)
7    Sec. 4.1. Gratuities.
8    (a) Gratuities to employees are the property of the 
9employees, and employers shall not keep gratuities. Failure to 
10pay gratuities owed to an employee more than 13 days after the 
11end of the pay period in which such gratuities were earned 
12constitutes a violation of this Act.
13    (b) This Section does not prohibit an employer from 
14withholding from gratuities paid by credit card a 
15proportionate amount of any credit card processing fees that 
16the employer must pay in connection with the transaction, 
17provided that the amount withheld does not exceed the 
18proportion of the amount of the tip to the amount of the 
19overall bill, regardless of whether the overall bill was paid 
20using a credit card. This Section does not prohibit tip 
21pooling as permitted by law. This Section does not affect an 
22employer's entitlement to an allowance for gratuities to the 
23extent permitted under subsection (c) of Section 4 of the 
 
 
SB3396- 2 -LRB104 18590 SPS 32033 b

1Minimum Wage Law.
2    (c) Beginning January 1, 2027, an employer who collects 
3gratuities through electronic means, including, but not 
4limited to, gratuities collected through debit cards, credit 
5cards, or other point-of-sale transactions, shall compile and 
6submit a quarterly report to the Department of Labor. The 
7report shall include the following information for the 
8preceding quarter:
9        (1) the total amount of electronic gratuities 
10    collected by the employer on behalf of all employees;
11        (2) the total amount of electronic gratuities 
12    distributed to all employees; and
13        (3) the total amount and the percentage of electronic 
14    gratuities withheld from employees under subsection (b) 
15    for credit card processing fees.
16    (d) Beginning January 1, 2027, an employer shall make 
17available on the pay stub provided to any employee who 
18receives gratuities collected through electronic means:
19        (1) the total amount of electronic gratuities earned 
20    for the pay period before any withholdings;
21        (2) the total amount of electronic gratuities earned 
22    under for the pay period after any withholdings; and
23        (3) the percentage of electronic gratuities withheld. 
24(Source: P.A. 101-509, eff. 1-1-20.)
 
25    Section 99. Effective date. This Act takes effect January 
261, 2027.