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SB3396 • 2026
WAGES-GRATUITIES REPORTING
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
WAGES-GRATUITIES REPORTING
Rule 3-9(a) / Re-referred to Assignments
Assigned to Labor
Filed with Secretary by Sen. Robert F. Martwick
First Reading
Referred to Assignments
WAGES-GRATUITIES REPORTING
Illinois General Assembly - Full Text of SB3396 Select Language × The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein. Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet. The English language version is always the official and authoritative version of this website. NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window. 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Full Text of SB3396 Home Legislation Full Text SB3396 - 104th General Assembly Bill Status Full Text Votes Witness Slips Select Menu Bill Status Full Text Votes Witness Slips Printer Friendly Version Introduced Printer Friendly Version Introduced Open PDF 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB3396 Introduced 2/4/2026, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 820 ILCS 115/4.1 Amends Illinois Wage Payment and Collection Act. Provides that, beginning January 1, 2027, an employer who collects gratuities through electronic means shall compile and submit a quarterly report to the Department of Labor containing specified information concerning the collection and distribution of electronic gratuities. Provides that, beginning January 1, 2027, an employer shall make available on the pay stub provided to any employee who receives gratuities collected through electronic means specified information concerning the collection and distribution of electronic gratuities. Effective January 1, 2027. LRB104 18590 SPS 32033 b A BILL FOR SB3396 LRB104 18590 SPS 32033 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 Illinois Wage Payment and Collection Act is 5 amended by changing Section 4.1 as follows: 6 (820 ILCS 115/4.1) 7 Sec. 4.1. Gratuities. 8 (a) Gratuities to employees are the property of the 9 employees, and employers shall not keep gratuities. Failure to 10 pay gratuities owed to an employee more than 13 days after the 11 end of the pay period in which such gratuities were earned 12 constitutes a violation of this Act. 13 (b) This Section does not prohibit an employer from 14 withholding from gratuities paid by credit card a 15 proportionate amount of any credit card processing fees that 16 the employer must pay in connection with the transaction, 17 provided that the amount withheld does not exceed the 18 proportion of the amount of the tip to the amount of the 19 overall bill, regardless of whether the overall bill was paid 20 using a credit card. This Section does not prohibit tip 21 pooling as permitted by law. This Section does not affect an 22 employer's entitlement to an allowance for gratuities to the 23 extent permitted under subsection (c) of Section 4 of the SB3396 - 2 - LRB104 18590 SPS 32033 b 1 Minimum Wage Law. 2 (c) Beginning January 1, 2027, an employer who collects 3 gratuities through electronic means, including, but not 4 limited to, gratuities collected through debit cards, credit 5 cards, or other point-of-sale transactions, shall compile and 6 submit a quarterly report to the Department of Labor. The 7 report shall include the following information for the 8 preceding quarter: 9 (1) the total amount of electronic gratuities 10 collected by the employer on behalf of all employees; 11 (2) the total amount of electronic gratuities 12 distributed to all employees; and 13 (3) the total amount and the percentage of electronic 14 gratuities withheld from employees under subsection (b) 15 for credit card processing fees. 16 (d) Beginning January 1, 2027, an employer shall make 17 available on the pay stub provided to any employee who 18 receives gratuities collected through electronic means: 19 (1) the total amount of electronic gratuities earned 20 for the pay period before any withholdings; 21 (2) the total amount of electronic gratuities earned 22 under for the pay period after any withholdings; and 23 (3) the percentage of electronic gratuities withheld. 24 (Source: P.A. 101-509, eff. 1-1-20 .) 25 Section 99. Effective date. This Act takes effect January 26 1, 2027. 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