IL SB3396

Amends the Illinois Wage Payment and Collection Act to require employers who collect gratuities electronically (credit cards, debit cards, point-of-sale) to submit quarterly reports to the Department of Labor starting January 1, 2027

Quarterly reports must include total electronic gratuities collected, total distributed to employees, and total amount/percentage withheld for credit card processing fees

Requires employers to disclose on employee pay stubs the total electronic gratuities earned before withholdings, amount after withholdings, and percentage withheld

Reaffirms existing law that gratuities are employee property and must be paid within 13 days after the end of the pay period in which they were earned

Preserves employers' ability to withhold proportionate credit card processing fees from tips and allows tip pooling as permitted by law