HB2982ham001 104TH GENERAL ASSEMBLY

Rep. Elizabeth "Lisa" Hernandez

Filed: 3/19/2025

10400HB2982ham001 LRB104 08468 SPS 24268 a

AMENDMENT TO HOUSE BILL 2982

AMENDMENT NO. ______. Amend House Bill 2982 by replacing everything after the enacting clause with the following:

"Section 1. This Act may be referred to as the One Fair Wage with Tips on Top Act.

Section 5. The Illinois Income Tax Act is amended by adding Section 246 as follows:

(35 ILCS 5/246 new)

Sec. 246. Credit for payment of minimum wage without gratuity allowance.

(a) As used in this Section:

"Eligible tipped employee" means an employee for whom a taxpayer is lawfully able to take an allowance, as an employer, against the payment of the full minimum wage for gratuities as provided under subsection (c) of Section 4 of the Minimum Wage Law.

"Full minimum wage" means the required wage that must be paid to an employee as set forth in paragraph (1) of subsection (a) of Section 4 of the Minimum Wage Law

(b) For taxable years beginning on or after January 1, 2025 and ending before January 1, 2028, each taxpayer who employs an eligible tipped employee and does not take an allowance against the full minimum wage is entitled to a credit in each of those taxable years against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to the product of $1.50 multiplied by the total number of hours for which an allowance could have been claimed by the employer in the taxable year for eligible tipped employees under subsection (c) of Section 4 of the Minimum Wage Law but was not claimed by the employer in that taxable year.

(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(d) A taxpayer claiming the credit provided under this Section must maintain and record any information that the Department may require by rule regarding the credit claimed.

Section 10. The Minimum Wage Law is amended by changing Sections 4, 9, and 11 as follows:

(820 ILCS 105/4) (from Ch. 48, par. 1004)

Sec. 4. (a)(1) Every employer shall pay to each of his employees in every occupation wages of not less than $2.30 per hour or in the case of employees under 18 years of age wages of not less than $1.95 per hour, except as provided in Sections 5 and 6 of this Act, and on and after January 1, 1984, every employer shall pay to each of his employees in every occupation wages of not less than $2.65 per hour or in the case of employees under 18 years of age wages of not less than $2.25 per hour, and on and after October 1, 1984 every employer shall pay to each of his employees in every occupation wages of not less than $3.00 per hour or in the case of employees under 18 years of age wages of not less than $2.55 per hour, and on or after July 1, 1985 every employer shall pay to each of his employees in every occupation wages of not less than $3.35 per hour or in the case of employees under 18 years of age wages of not less than $2.85 per hour, and from January 1, 2004 through December 31, 2004 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $5.50 per hour, and from January 1, 2005 through June 30, 2007 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $6.50 per hour, and from July 1, 2007 through June 30, 2008 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $7.50 per hour, and from July 1, 2008 through June 30, 2009 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $7.75 per hour, and from July 1, 2009 through June 30, 2010 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $8.00 per hour, and from July 1, 2010 through December 31, 2019 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $8.25 per hour, and from January 1, 2020 through June 30, 2020, every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $9.25 per hour, and from July 1, 2020 through December 31, 2020 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $10 per hour, and from January 1, 2021 through December 31, 2021 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $11 per hour, and from January 1, 2022 through December 31, 2022 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $12 per hour, and from January 1, 2023 through December 31, 2023 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $13 per hour, and from January 1, 2024 through December 31, 2024, every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $14 per hour; and on and after January 1, 2025, every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $15 per hour.

(2) Unless an employee's wages are reduced under Section 6, then in lieu of the rate prescribed in item (1) of this subsection (a), an employer may pay an employee who is 18 years of age or older, during the first 90 consecutive calendar days after the employee is initially employed by the employer, a wage that is not more than 50¢ less than the wage prescribed in item (1) of this subsection (a); however, an employer shall pay not less than the rate prescribed in item (1) of this subsection (a) to:

(A) a day or temporary laborer, as defined in Section 5 of the Day and Temporary Labor Services Act, who is 18 years of age or older; and

(B) an employee who is 18 years of age or older and whose employment is occasional or irregular and requires not more than 90 days to complete.

(3) At no time on or before December 31, 2019 shall the wages paid to any employee under 18 years of age be more than 50¢ less than the wage required to be paid to employees who are at least 18 years of age under item (1) of this subsection (a). Beginning on January 1, 2020, every employer shall pay to each of his or her employees who is under 18 years of age that has worked more than 650 hours for the employer during any calendar year a wage not less than the wage required for employees who are 18 years of age or older under paragraph (1) of subsection (a) of Section 4 of this Act. Every employer shall pay to each of his or her employees who is under 18 years of age that has not worked more than 650 hours for the employer during any calendar year: (1) $8 per hour from January 1, 2020 through December 31, 2020; (2) $8.50 per hour from January 1, 2021 through December 31, 2021; (3) $9.25 per hour from January 1, 2022 through December 31, 2022; (4) $10.50 per hour from January 1, 2023 through December 31, 2023; (5) $12 per hour from January 1, 2024 through December 31, 2024; and (6) $13 per hour on and after January 1, 2025.

(b) No employer shall discriminate between employees on the basis of sex or mental or physical disability, except as otherwise provided in this Act by paying wages to employees at a rate less than the rate at which he pays wages to employees for the same or substantially similar work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to (1) a seniority system; (2) a merit system; (3) a system which measures earnings by quantity or quality of production; or (4) a differential based on any other factor other than sex or mental or physical disability, except as otherwise provided in this Act.

(c) Every employer of an employee engaged in an occupation in which gratuities have customarily and usually constituted and have been recognized as part of the remuneration for hire purposes is entitled to an allowance for gratuities as part of the hourly wage rate provided in Section 4, subsection (a) in an amount as follows: not to exceed 40% of the applicable minimum wage rate through June 30, 2025; not to exceed 20% of the applicable minimum wage rate from July 1, 2025 through June 30, 2026; and not to exceed 10% of the applicable minimum wage rate from July 1, 2026 through June 30, 2027. On and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in paragraph (1) of subsection (a). The Director shall require each employer desiring an allowance for gratuities to provide substantial evidence that the amount claimed, which may not exceed a percentage of 40% of the applicable minimum wage rate as provided in this Section, was received by the employee in the period for which the claim of exemption is made, and no part thereof was returned to the employer, and that the employer provides, at the time of payment, a written accounting of the hourly wages paid for each shift worked during the pay period. An employer shall not keep any gratuities received by an employee for any purpose or allow a manager or a supervisor to keep any portion of an employee's gratuities, regardless of whether or not the employer takes an allowance for gratuities. Nothing in this Section shall be construed to prohibit an otherwise valid pooling of gratuities among non-managerial and non-supervisory employees.

(d) No camp counselor who resides on the premises of a seasonal camp of an organized not-for-profit corporation shall be subject to the adult minimum wage if the camp counselor (1) works 40 or more hours per week, and (2) receives a total weekly salary of not less than the adult minimum wage for a 40-hour week. If the counselor works less than 40 hours per week, the counselor shall be paid the minimum hourly wage for each hour worked. Every employer of a camp counselor under this subsection is entitled to an allowance for meals and lodging as part of the hourly wage rate provided in Section 4, subsection (a), in an amount not to exceed 25% of the minimum wage rate.

(e) A camp counselor employed at a day camp is not subject to the adult minimum wage if the camp counselor is paid a stipend on a onetime or periodic basis and, if the camp counselor is a minor, the minor's parent, guardian or other custodian has consented in writing to the terms of payment before the commencement of such employment.

(Source: P.A. 101-1, eff. 2-19-19.)

(820 ILCS 105/9) (from Ch. 48, par. 1009)

Sec. 9. (a) Every employer subject to any provision of this Act or of any regulations issued under this Act shall keep a summary of this Act approved by the Director, and copies of any applicable regulations issued under this Act or a summary of such regulations, posted in a conspicuous and accessible place in or about the premises wherever any person subject to this Act is employed. Every employer subject to any provision of this Act or any regulations issued under this Act with employees who do not regularly report to a physical workplace, such as employees who work remotely or travel for work, shall also provide the summaries and regulations by email to its employees or conspicuous posting on the employer's website or intranet site, if such site is regularly used by the employer to communicate work-related information to employees and is able to be regularly accessed by all employees, freely and without interference. Employers shall be furnished copies of such summaries and regulations by the State on request without charge.

(b) Every employer shall provide each employee who receives gratuities, in writing in English and in the language identified by each employee as the primary language of the employee, at the time of hiring and at any time the employee's compensation changes, a notice containing:

(1) the rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, or other method, including overtime compensation rates for non-exempt employees and allowances claimed as part of the minimum wage, including gratuities;

(2) employees' rights to be compensated by their employer at the rate prescribed in subsection (a) of Section 4 when gratuities do not bring the employee to that rate at the end of each shift;

(3) employee rights to retain gratuities as described in this Act; and

(4) other relevant employee rights deemed necessary by the Director by rule.

The Director shall prepare templates that comply with the notice requirements of this subsection. The template shall include the information required by this subsection in 2 languages, including English and one additional language determined by the Director based on the population of this State that speaks the language and any other factor that the Director deems relevant.

(Source: P.A. 103-201, eff. 1-1-24.)

(820 ILCS 105/11) (from Ch. 48, par. 1011)

Sec. 11. (a) Any employer or his agent, or the officer or agent of any private employer who:

(1) hinders or delays the Director or his authorized representative in the performance of his duties in the enforcement of this Act; or

(2) refuses to admit the Director or his authorized representative to any place of employment; or

(3) fails to keep the records required under this Act or to furnish such records required or any information to be furnished under this Act to the Director or his authorized representative upon request; or

(4) fails to make and preserve any records as required hereunder; or

(5) falsifies any such record; or

(6) refuses to make such records available to the Director or his authorized representative; or

(7) refuses to furnish a sworn statement of such records or any other information required for the proper enforcement of this Act; or

(8) fails to post a summary of this Act or a copy of any applicable regulation as required by Section 9 of this Act; shall be guilty of a Class B misdemeanor; and each day of such failure to keep the records required under this Act or to furnish such records or information to the Director or his authorized representative or to fail to post information as required herein constitutes a separate offense. Any such employer who fails to keep payroll records as required by this Act shall be liable to the Department for a penalty of $100 per impacted employee, payable to the Department's Wage Theft Enforcement Fund.

(a-5) Any employer or his agent, or the officer or agent of any private employer who violates any part of subsection (c) of Section 4 shall be liable to the Department for a penalty of up to $1,500 per day for each violation.

(b) Any employer or his agent, or the officer or agent of any private employer, who pays or agrees to pay to any employee wages at a rate less than the rate applicable under this Act or of any regulation issued under this Act is guilty of a Class B misdemeanor, and each week on any day of which such employee is paid less than the wage rate applicable under this Act constitutes a separate offense.

(c) Any employer or his agent, or the officer or agent of any private employer, who discharges or in any other manner discriminates against any employee because that employee has made a complaint to his employer, or to the Director or his authorized representative, that he has not been paid wages in accordance with the provisions of this Act, or because that employee has caused to be instituted or is about to cause to be instituted any proceeding under or related to this Act, or because that employee has testified or is about to testify in an investigation or proceeding under this Act, is guilty of a Class B misdemeanor.

(d) It is the duty of the Department of Labor to inquire diligently for any violations of this Act, and to institute the action for penalties herein provided, and to enforce generally the provisions of this Act.

(Source: P.A. 101-1, eff. 2-19-19.)

Section 15. 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.

(a-5) Any service charge imposed by an employer on a customer shall be a gratuity as described in subsection (a) and is the property of the employees. An employer who imposes a bona fide service charge on a customer shall explicitly and conspicuously disclose to the consumer that all funds generated from the service charge are directly given to the employees in the form of a gratuity. Nothing in this subsection shall be construed to prohibit an otherwise valid pooling of gratuities.

(b) No employer shall withhold 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.

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

Section 99. Effective date. This Act takes effect July 1, 2025.".