What is minimum wage for tipped employees?
Tipped employees must be paid minimum wage, but an employer may take credit for the employees tips in an amount not to exceed 40% of the wages. An employer may pay a training wage for tipped employees 18 and over in the amount of $4.65 for the first 90 days if applying the tip credit of 40% or $7.75 if not utilizing the tip credit. After 90 days, the rate must be increased to $4.95 if utilizing the tip credit of 40% or $8.25 if not utilizing the tip credit. For more information, click here. 820 ILCS 105/4 and 56 Ill. Adm. Code 210.200.
Tipped employees must be paid minimum wage, but an employer may take credit for the employees tips in an amount not to exceed 40% of the wages. An employer may pay a training wage for tipped employees 18 and over in the amount of $4.65 for the first 90 days if applying the tip credit of 40% or $7.75 if not utilizing the tip credit. After 90 days, the rate must be increased to $4.95 if not utilizing the tip credit. For more information, click here. 820 ILCS 105/4 and 56 Ill. Adm. Code 210.200.