IL HB3405

Employers are prohibited from retaining gratuities, which are the property of employees, with violations occurring when gratuities are not paid more than 13 days after the end of the pay period in which they were earned.

Employers may withhold a proportionate amount of credit card processing fees from credit card tips, but only up to the proportion of the tip to the overall bill amount.

Tip pooling remains permitted as allowed by law, and the provision does not affect employer entitlements to gratuity allowances under the Minimum Wage Law.

The Department of Labor may file a verified petition in circuit court to enforce administrative decisions requiring wage payments if an employer fails to pay within 35 days or does not timely appeal the decision.

Employees retain the right to file complaints with the Department of Labor within one year of when wages were due and may pursue private lawsuits in circuit court without exhausting administrative remedies.