Tipped Employees in Illinois

In Illinois, in occupations where gratuities constitute a part of the remuneration, the employer is entitled to an allowance for gratuities as part of the employee's hourly wage rate in an amount not to exceed 40 percent of the applicable minimum wage. Employers taking a tip allowance are required to provide substantial evidence that the amount claimed as tips was received by the employee in the period for which the claim of exemption is made and that no part of that amount was returned to the employer.