Chicago, Illinois Tipped wage Check my business →
Chicago, Illinois · OFFICIAL SOURCES & THRESHOLDS

Chicago, Illinois
Tipped wage.

Check official requirements, employee thresholds, effective dates, and employer responsibilities for tipped wage.

Notice: General informational guidance, not legal advice. Read the full legal disclaimer. Federal, state, and municipal regulations operate concurrently.
Part of Illinois Employment Compliance

Municipal ordinances operate concurrently with state and federal labor laws.

Illinois Tipped wage → All Illinois Rules →

Separate Chicago rules

No separate Chicago rule is published yet for tipped wage. The state rule shown below applies unless a different local requirement is verified and published. Do not treat the state figure as a Chicago figure.

Applicable state and federal rules

These are state or federal requirements that may also apply within Chicago. Each entry remains labeled with its own jurisdiction and source.

Tipped wage · IllinoisChanged recently

Illinois tipped wage

Cash wage $9.00 per hour (60% of the $15.00 minimum wage)

An Illinois employer of tipped employees may pay 60% of the minimum wage - $9.00 per hour while the state minimum wage is $15.00 - as long as tips bring the employee's total pay to at least the full minimum wage.

Employee threshold: 0+ employees in Illinois · All industries
Effective
Jan 1, 2025

Local notes & what to do

Illinois handles paid leave differently: the Paid Leave for All Workers Act gives up to 40 hours a year that employees can use for any reason, and the state Department of Labor confirms there is no separate Illinois paid sick leave law. Pay transparency duties began January 1, 2025 for employers with 15 or more employees. Chicago and Cook County run their own paid leave ordinances, so workers there follow local rules instead of the state act.

Official source: Illinois Department of Labor - Worker Rights Last checked Nov 1, 2026
No expert reviewer assigned to this entry. General information, not legal advice.

Thresholds, dates & upcoming changes

Jurisdiction / rule Requirement Employees / industry Effective / status Official source / last checked
Illinois
Illinois tipped wage
Cash wage $9.00 per hour (60% of the $15.00 minimum wage) 0–any employees
All industries
Jan 1, 2025
Current
Illinois Department of Labor - Worker Rights
Checked Nov 1, 2026
THE DATED RECORD

What changed in Chicago, Illinois?

Illinois · Tipped wage

Rule name changed from not previously published to Illinois tipped wage. Summary changed from not previously published to An Illinois employer of tipped employees may pay 60% of the minimum wage - $9.00 per hour while the state minimum wage is $15.00 - as long as tips bring the employee's total pay to at least the full minimum wage.. Requirement changed from not previously published to Cash wage $9.00 per hour (60% of the $15.00 minimum wage). Numeric amount changed from not previously published to 9. Minimum employer size changed from not previously published to 0 employees. Effective date changed from not previously published to Jan 1, 2025. Publication status changed from not previously published to active. Local guidance changed from not previously published to Illinois handles paid leave differently: the Paid Leave for All Workers Act gives up to 40 hours a year that employees can use for any reason, and the state Department of Labor confirms there is no separate Illinois paid sick leave law. Pay transparency duties began January 1, 2025 for employers with 15 or more employees. Chicago and Cook County run their own paid leave ordinances, so workers there follow local rules instead of the state act.. Industry coverage changed from not previously published to not published.

Source: Illinois Department of Labor - Worker Rights · Effective Jan 1, 2025 · Last checked Nov 1, 2026 · View current requirement →
FREQUENTLY ASKED QUESTIONS

Questions employers ask about Tipped wage in Chicago, Illinois

What is the Illinois tipped wage requirement for 0+ employees?

Cash wage $9.00 per hour (60% of the $15.00 minimum wage). An Illinois employer of tipped employees may pay 60% of the minimum wage - $9.00 per hour while the state minimum wage is $15.00 - as long as tips bring the employee's total pay to at least the full minimum wage.

When did Illinois tipped wage take effect?

Effective January 1, 2025. Source: Illinois Department of Labor - Worker Rights. Last checked November 1, 2026.

Who must follow Illinois tipped wage?

Employers with 0 or more employees in Illinois across all industries.

What is the penalty for violating Illinois tipped wage?

No penalty information has been published in this entry. Consult the official source.

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