Illinois tip pooling laws & tipped minimum wage
In Illinois, employers can pay tipped workers $9.00/hr as long as tips bring them to the $15.00 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $15.00/hr |
| Minimum cash wage for tipped workers | $9.00/hr |
| Maximum tip credit | $6.00/hr |
| Tips belong to | Employees — always |
Rates reviewed June 2026. Rates change — confirm with the Illinois labor department. Not legal advice.
What's specific to Illinois
Tipped workers must receive at least 60% of the minimum wage in cash. Chicago sets a higher local minimum and is phasing out its tip credit entirely.
Tip pooling in Illinois
Illinois follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $9.00/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Two federal rules apply no matter what: managers and supervisors can never take from a tip pool, and credit card processing fees can only be deducted from tips where state law allows it .
What this means for your tip-out
Because part of your legal wage in Illinois comes from tips, every dollar you tip out matters — your employer's tip credit assumes those tips reached you. Track what you actually keep. Use our tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Illinois tip law FAQs
What is the tipped minimum wage in Illinois?
Employers in Illinois may pay tipped employees a cash wage of $9.00/hr and claim a tip credit of up to $6.00/hr toward the $15.00 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in Illinois?
Illinois follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $9.00/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a cut of the tip pool in Illinois?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Illinois. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).