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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4263

Introduced 1/14/2026, by Rep. Curtis J. Tarver, II

SYNOPSIS AS INTRODUCED:

820 ILCS 105/4

from Ch. 48, par. 1004

Amends the Minimum Wage Law. Provides that the regulation of
allowances for gratuities as part of the hourly wage rate is an exclusive
power and function of the State. Provides that a home rule unit may not
regulate allowances for gratuities as part of the hourly wage rate.
Effective immediately.
LRB104 14643 SPS 27785 b

A BILL FOR

HB4263
LRB104 14643 SPS 27785 b
1

AN ACT concerning employment.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Minimum Wage Law is amended by changing
5
Section 4 as follows:

6

(820 ILCS 105/4)

(from Ch. 48, par. 1004)
7

Sec. 4.
(a)(1) Every employer shall pay to each of his
8
employees in every occupation wages of not less than $2.30 per
9
hour or in the case of employees under 18 years of age wages of
10
not less than $1.95 per hour, except as provided in Sections 5
11
and 6 of this Act, and on and after January 1, 1984, every
12
employer shall pay to each of his employees in every
13
occupation wages of not less than $2.65 per hour or in the case
14
of employees under 18 years of age wages of not less than $2.25
15
per hour, and on and after October 1, 1984 every employer shall
16
pay to each of his employees in every occupation wages of not
17
less than $3.00 per hour or in the case of employees under 18
18
years of age wages of not less than $2.55 per hour, and on or
19
after July 1, 1985 every employer shall pay to each of his
20
employees in every occupation wages of not less than $3.35 per
21
hour or in the case of employees under 18 years of age wages of
22
not less than $2.85 per hour, and from January 1, 2004 through
23
December 31, 2004 every employer shall pay to each of his or

HB4263
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LRB104 14643 SPS 27785 b
1
her employees who is 18 years of age or older in every
2
occupation wages of not less than $5.50 per hour, and from
3
January 1, 2005 through June 30, 2007 every employer shall pay
4
to each of his or her employees who is 18 years of age or older
5
in every occupation wages of not less than $6.50 per hour, and
6
from July 1, 2007 through June 30, 2008 every employer shall
7
pay to each of his or her employees who is 18 years of age or
8
older in every occupation wages of not less than $7.50 per
9
hour, and from July 1, 2008 through June 30, 2009 every
10
employer shall pay to each of his or her employees who is 18
11
years of age or older in every occupation wages of not less
12
than $7.75 per hour, and from July 1, 2009 through June 30,
13
2010 every employer shall pay to each of his or her employees
14
who is 18 years of age or older in every occupation wages of
15
not less than $8.00 per hour, and from July 1, 2010 through
16
December 31, 2019 every employer shall pay to each of his or
17
her employees who is 18 years of age or older in every
18
occupation wages of not less than $8.25 per hour, and from
19
January 1, 2020 through June 30, 2020, every employer shall
20
pay to each of his or her employees who is 18 years of age or
21
older in every occupation wages of not less than $9.25 per
22
hour, and from July 1, 2020 through December 31, 2020 every
23
employer shall pay to each of his or her employees who is 18
24
years of age or older in every occupation wages of not less
25
than $10 per hour, and from January 1, 2021 through December
26
31, 2021 every employer shall pay to each of his or her

HB4263
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LRB104 14643 SPS 27785 b
1
employees who is 18 years of age or older in every occupation
2
wages of not less than $11 per hour, and from January 1, 2022
3
through December 31, 2022 every employer shall pay to each of
4
his or her employees who is 18 years of age or older in every
5
occupation wages of not less than $12 per hour, and from
6
January 1, 2023 through December 31, 2023 every employer shall
7
pay to each of his or her employees who is 18 years of age or
8
older in every occupation wages of not less than $13 per hour,
9
and from January 1, 2024 through December 31, 2024, every
10
employer shall pay to each of his or her employees who is 18
11
years of age or older in every occupation wages of not less
12
than $14 per hour; and on and after January 1, 2025, every
13
employer shall pay to each of his or her employees who is 18
14
years of age or older in every occupation wages of not less
15
than $15 per hour.
16

(2) Unless an employee's wages are reduced under Section
17
6, then in lieu of the rate prescribed in item (1) of this
18
subsection (a), an employer may pay an employee who is 18 years
19
of age or older, during the first 90 consecutive calendar days
20
after the employee is initially employed by the employer, a
21
wage that is not more than 50¢ less than the wage prescribed in
22
item (1) of this subsection (a); however, an employer shall
23
pay not less than the rate prescribed in item (1) of this
24
subsection (a) to:
25

(A) a day or temporary laborer, as defined in Section
26

5 of the Day and Temporary Labor Services Act, who is 18

HB4263
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LRB104 14643 SPS 27785 b
1

years of age or older; and
2

(B) an employee who is 18 years of age or older and
3

whose employment is occasional or irregular and requires
4

not more than 90 days to complete.
5

(3) At no time on or before December 31, 2019 shall the
6
wages paid to any employee under 18 years of age be more than
7
50¢ less than the wage required to be paid to employees who are
8
at least 18 years of age under item (1) of this subsection (a).
9
Beginning on January 1, 2020, every employer shall pay to each
10
of his or her employees who is under 18 years of age that has
11
worked more than 650 hours for the employer during any
12
calendar year a wage not less than the wage required for
13
employees who are 18 years of age or older under paragraph (1)
14
of subsection (a) of Section 4 of this Act. Every employer
15
shall pay to each of his or her employees who is under 18 years
16
of age that has not worked more than 650 hours for the employer
17
during any calendar year: (1) $8 per hour from January 1, 2020
18
through December 31, 2020; (2) $8.50 per hour from January 1,
19
2021 through December 31, 2021; (3) $9.25 per hour from
20
January 1, 2022 through December 31, 2022; (4) $10.50 per hour
21
from January 1, 2023 through December 31, 2023; (5) $12 per
22
hour from January 1, 2024 through December 31, 2024; and (6)
23
$13 per hour on and after January 1, 2025.
24

(b) No employer shall discriminate between employees on
25
the basis of sex or mental or physical disability, except as
26
otherwise provided in this Act by paying wages to employees at

HB4263
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LRB104 14643 SPS 27785 b
1
a rate less than the rate at which he pays wages to employees
2
for the same or substantially similar work on jobs the
3
performance of which requires equal skill, effort, and
4
responsibility, and which are performed under similar working
5
conditions, except where such payment is made pursuant to (1)
6
a seniority system; (2) a merit system; (3) a system which
7
measures earnings by quantity or quality of production; or (4)
8
a differential based on any other factor other than sex or
9
mental or physical disability, except as otherwise provided in
10
this Act.
11

(c) Every employer of an employee engaged in an occupation
12
in which gratuities have customarily and usually constituted
13
and have been recognized as part of the remuneration for hire
14
purposes is entitled to an allowance for gratuities as part of
15
the hourly wage rate provided in Section 4, subsection (a) in
16
an amount not to exceed 40% of the applicable minimum wage
17
rate. The Director shall require each employer desiring an
18
allowance for gratuities to provide substantial evidence that
19
the amount claimed, which may not exceed 40% of the applicable
20
minimum wage rate, was received by the employee in the period
21
for which the claim of exemption is made, and no part thereof
22
was returned to the employer.
23

The regulation of allowances for gratuities as part of the
24
hourly wage rate is an exclusive power and function of the
25
State. A home rule unit may not regulate allowances for
26
gratuities as part of the hourly wage rate. This subsection

HB4263
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LRB104 14643 SPS 27785 b
1
(c) is a denial and limitation of home rule powers and
2
functions under subsection (h) of Section 6 of Article VII of
3
the Illinois Constitution.
4

(d) No camp counselor who resides on the premises of a
5
seasonal camp of an organized not-for-profit corporation shall
6
be subject to the adult minimum wage if the camp counselor (1)
7
works 40 or more hours per week, and (2) receives a total
8
weekly salary of not less than the adult minimum wage for a
9
40-hour week. If the counselor works less than 40 hours per
10
week, the counselor shall be paid the minimum hourly wage for
11
each hour worked. Every employer of a camp counselor under
12
this subsection is entitled to an allowance for meals and
13
lodging as part of the hourly wage rate provided in Section 4,
14
subsection (a), in an amount not to exceed 25% of the minimum
15
wage rate.
16

(e) A camp counselor employed at a day camp is not subject
17
to the adult minimum wage if the camp counselor is paid a
18
stipend on a onetime or periodic basis and, if the camp
19
counselor is a minor, the minor's parent, guardian or other
20
custodian has consented in writing to the terms of payment
21
before the commencement of such employment.
22
(Source: P.A. 101-1, eff. 2-19-19.)

23

Section 99.
Effective date.
This Act takes effect upon
24
becoming law.

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