IL HB4263

Establishes that regulating gratuity allowances (tip credits) as part of the hourly wage rate is an exclusive state power, preempting local control over tipped minimum wage rules

Prohibits home rule units (cities like Chicago) from setting their own rules on how tips can be counted toward minimum wage requirements for tipped workers

Maintains the existing state law allowing employers to claim a tip credit of up to 40% of the applicable minimum wage for tipped employees

Explicitly denies and limits home rule powers under Article VII, Section 6(h) of the Illinois Constitution regarding gratuity allowance regulation

Takes effect immediately upon becoming law