SPRINGFIELD, Ill. (WTVO) — A proposed Illinois law would raise the hourly rate of tipped workers to the minimum wage, up from the current subminimum wage.
According to state law, while the minimum wage rose to $14 in 2024, tipped employees make a subminimum of $8.40, with the difference being made up in tips.
The proposed law, in partnership with the One Fair Wage organization, would raise hourly pay for tipped workers to $15.80, and still allow for tips.
One Fair Wage is pushing to eliminate subminimum wages across the U.S. The group and progressive lawmakers held a rally outside the state capitol on Tuesday, in which the lawmakers announced they would be filing the bill later this week.
Federal law currently requires employers to make up the difference if an employee’s tip and wages do not equal the minimum wage.
The City of Chicago has already adopted legislation phasing out the subminimum wage by 2028.
The Illinois Restaurant Association said the law would change how restaurants operate, placing more pressure on smaller, family-run and minority-owned businesses.