2023 Illinois Tipped Minimum Wage
The 2023 Illinois Tipped Minimum Wage is $7.80.
Effective 2023-01-01Source: Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)Verified 2026-08-31
Who it applies to
Illinois workers who regularly receive tips
What changed this year, and why
On January 1, 2023, the minimum cash wage for tipped workers in Illinois increased to $7.80 per hour.
Common questions
- What if a tipped worker's tips plus the cash wage do not reach the full minimum wage?
- The employer is required to make up the difference so that the worker receives at least the full minimum wage.
Who counts as a tipped employee
In Illinois, a tipped employee is a worker who regularly earns tips as part of their compensation. Under Illinois law, these workers receive a lower direct cash wage from their employer—set at $7.80 per hour for 2023—rather than the full state minimum wage. However, this classification does not mean tipped workers are exempt from minimum wage protections. The law requires that their total earnings, combining the $7.80 cash wage plus the tips they receive, must equal at least the full Illinois minimum wage for every hour worked. If a worker does not regularly receive tips, they do not fall into this category and must be paid the standard minimum wage without any reduction. The definition focuses on the regularity of tips rather than the amount, so even workers who receive tips occasionally may not qualify as tipped employees if it is not a customary part of their compensation. Workers in Illinois should confirm with their employer whether they are classified as tipped and what wage rate applies to their position.
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.
Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)
What a tip credit is, and the cash wage underneath it
In Illinois, the tip credit allows employers to pay tipped workers a lower direct cash wage—in 2023, that amount is $7.80 per hour—while counting the tips received toward the full state minimum wage. The tip credit represents the difference between what the employer pays directly and the minimum wage the worker is entitled to. However, this arrangement comes with a critical protection: tipped workers must still earn at least the full minimum wage when you combine their cash wage with their tips. If the tips fall short and the worker's total compensation does not reach the minimum wage, the employer is required to make up the difference. This means the employer cannot simply pay $7.80 per hour regardless of how much the worker actually earns in tips. The tip credit shifts some of the wage burden to customers through tips, but it does not eliminate the employer's obligation to ensure the worker receives the full minimum wage. For 2023, tipped employees in Illinois receive a cash wage of $7.80, but their total earnings must meet or exceed the state minimum wage.
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.
Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)
When the tips do not get you to the minimum wage
In Illinois, when a tipped worker's tips combined with their cash wage do not reach the full minimum wage, the employer is legally required to make up the difference. The cash wage for tipped employees is set at $7.80 per hour for 2023, but this is only the direct payment from the employer. The law guarantees that tipped workers must still earn at least the full minimum wage for every hour worked. This means if your tips in a given pay period are low—perhaps due to slow business, seasonal fluctuations, or other factors—your employer cannot simply pay you the reduced cash wage and leave you short. They must calculate whether your total earnings (the $7.80 cash wage plus your tips) meet the minimum wage threshold. If they fall below that threshold, your employer must pay you additional wages to bring you up to the minimum. This protection ensures that tipped workers in Illinois are never left earning less than the state minimum wage due to circumstances beyond their control. The risk of low tips falls on the employer, not the worker.
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.
Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)
The notice an employer owes you before it takes the credit
Illinois requires employers to inform tipped workers about wage arrangements before applying any reduced cash wage. Under state law, workers who regularly earn tips receive a cash wage of $7.80 per hour in 2023, which is lower than the full minimum wage. However, employers must communicate this arrangement to workers in advance. The notice requirement ensures that tipped employees understand their wage structure: they receive a reduced direct payment from the employer, but their tips count toward meeting the full minimum wage. If the combined total of the cash wage and tips does not reach the minimum wage, the employer must make up the difference. Workers in Illinois should receive clear information from their employer about how their wages are calculated, what the cash wage rate is, and what protections apply if their tips fall short. This transparency allows tipped workers to verify that they are receiving proper compensation and understand their rights under Illinois wage law. If you have not received this information, you should ask your employer for clarification about your wage classification and rate.
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.
Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)
Your employer, your manager and your supervisor may not keep your tips
Illinois law protects tipped workers' right to keep the tips they earn. Employers, managers, and supervisors are prohibited from keeping any portion of an employee's tips. The cash wage for tipped workers in Illinois is set at $7.80 per hour for 2023, but this reduced rate is only permitted because the worker retains their tips. The law recognizes that tips belong to the worker who receives them from customers, not to the business or its management. While employers may require participation in valid tip pools among eligible workers, they cannot take tips for themselves or use tips to offset business costs. The requirement that employers must make up the difference if tips fall short further reinforces that tips are the worker's compensation. If a worker's tips plus the cash wage do not reach the minimum wage, the employer pays the shortfall. This structure ensures that tips serve their intended purpose: compensating the worker who provided service. Any employer in Illinois who keeps employee tips violates state law.
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.
Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)
Which tip pools you can be made to join
In Illinois, tip pools must be limited to workers in occupations where they customarily and regularly receive tips. While the law permits employers to require participation in tip pooling arrangements, these pools cannot include workers who do not typically earn tips as part of their regular compensation. For tipped workers receiving the cash wage of $7.80 per hour in 2023, this means tip pools should only include other workers in similar tipped positions such as servers, bartenders, bussers, and other service staff who regularly interact with customers and receive tips. The law protects tipped workers by ensuring their tips are shared only among eligible workers who also depend on tips as part of their compensation. Employers cannot require tipped workers to share their tips with managers, supervisors, or back-of-house staff who do not customarily receive tips. This restriction prevents dilution of tip income and ensures the tip credit system functions as intended. Workers in Illinois should verify that any tip pool they are required to join meets these eligibility requirements.
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.
Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)
Doing two jobs for one employer
In Illinois, when a worker performs both tipped and non-tipped duties for the same employer, special rules apply to determine their wage classification. A worker who performs dual jobs—for example, someone who works as a server during busy periods and as a host during slow periods—is only considered a tipped employee with respect to the time spent in the tipped role. For the hours worked in the non-tipped position, the employer must pay the full minimum wage rather than the reduced cash wage of $7.80 that applies to tipped work. This means employers cannot simply classify a worker as tipped for their entire shift if part of that shift involves work that does not regularly produce tips. The law requires employers to track which duties are tipped and which are not, and to apply the appropriate wage rate to each. Workers in Illinois who perform mixed duties should verify that they are receiving the correct wage for each type of work. If a significant portion of your shift does not involve tip-generating work, you may be entitled to the full minimum wage for those hours rather than the lower tipped wage.
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.
Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Increase Coming for Illinois Minimum Wage on Jan. 1 (Illinois Department of Labor)
- Minimum cash wage
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1;
Other years
Every Illinois Tipped Minimum Wage year · Tipped Minimum Wage in every state