IL SB3776

Creates the Blue Star Restaurant Program to recognize restaurants that voluntarily take no allowance for gratuities; participating restaurants must complete equity training and have no wage law violations within 3 years.

Reduces the gratuity allowance from 40% to 20% of minimum wage from July 1, 2024 through June 30, 2026, then eliminates the allowance entirely on July 1, 2026, requiring employers to pay full minimum wage.

Requires employers to provide written notice to gratuity-earning employees about wages, compensation when gratuities fall short of minimum wage, and employee rights to retain gratuities.

Prohibits employers from withholding credit card processing fees from gratuities and establishes that service charges imposed on customers are gratuities belonging to employees.

Allows organizations designated as "interested parties" to file complaints with the Department of Labor and pursue civil actions for wage violations after a 180-day administrative period; prevailing parties receive 10% of penalties plus attorney fees.