103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3898

 

Introduced 2/17/2023, by Rep. Camille Y. Lilly

 

SYNOPSIS AS INTRODUCED:
 
New Act
820 ILCS 105/4  from Ch. 48, par. 1004

    Creates the High Roads Kitchen Program Act. Provides that the Department of Labor shall create the High Roads Kitchen Program to recognize restaurants that voluntarily take no allowance for gratuities under the Minimum Wage Law. Provides for program eligibility requirements, benefits, and revocation of certification. Provides that the Department may adopt rules to implement and enforce the program. Amends the Minimum Wage Law. Provides that, from July 1, 2024 through December 31, 2024, the allowance for gratuities to which an employer is entitled for an employee engaged in an occupation in which gratuities have been recognized as part of the remuneration shall not exceed 20% of the applicable minimum wage rate. Provides that, from January 1, 2025 through December 31, 2025, the allowance for gratuities shall not exceed 20% of the applicable minimum wage rate. Provides that, on and after January 1, 2026, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate.


LRB103 25782 SPS 52131 b

 

 

A BILL FOR

 

HB3898LRB103 25782 SPS 52131 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the High
5Roads Kitchen Program Act.
 
6    Section 5. High Roads Kitchen Program.
7    (a) The Department of Labor shall create the High Roads
8Kitchen Program to recognize restaurants that voluntarily take
9no allowance for gratuities under subsection (c) of Section 4
10of the Minimum Wage Law.
11    (b) To qualify for recognition as a High Road Kitchen
12Restaurant under the program, an owner of a restaurant must
13certify, on a form created by the Department, that the
14restaurant has satisfied the following requirements:
15        (1) that it takes no allowance for gratuities under
16    subsection (c) of Section 4 of the Minimum Wage Law;
17        (2) that all of the restaurant's owners and employees
18    have completed an equity training program approved by the
19    Department under Section 10; and
20        (3) that it has not been found to have violated the
21    Illinois Wage Payment and Collection Act or the Minimum
22    Wage Law by the Department or a court within the prior 3
23    years.
 

 

 

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1    Section 10. Equity training program. The Department of
2Labor shall approve an equity training program that trains
3restaurant owners and employees on how to achieve equity among
4employees in the restaurant while maintaining profitability
5and eliminating the subminimum wage for workers who have
6customarily received gratuities. To develop the content of the
7training and provide the training, the Department may work
8with non-profit organizations with an established history of
9working toward the goal of a full minimum wage plus gratuities
10for employees who have customarily received gratuities,
11eliminating the subminimum wage for such employees, and with a
12history of advancing racial equity in restaurants. The
13Director of Labor shall have the authority to approve any
14equity training program under this Section and certify any
15organization to provide the training that meets the criteria
16described in this Section. Under no circumstances may a
17restaurant owner charge an employee a fee for participation in
18an equity training program.
 
19    Section 15. Benefits of program membership. The Department
20of Labor shall certify restaurants participating in the High
21Roads Kitchen Program that satisfy the requirements described
22in subsection (b) of Section 5 and provide those restaurants
23with the following benefits:
24        (1) issuing the owner of a restaurant a certificate

 

 

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1    identifying the restaurant as a certified High Road
2    Kitchen Restaurant, that may be posted inside of the
3    restaurant; and
4        (2) listing the restaurant on its website as a
5    certified member of the High Road Kitchen Program.
 
6    Section 20. Revocation of certification under the program.
7    (a) Upon a finding that a restaurant certified under this
8Act has committed a substantial violation of the Illinois Wage
9Payment and Collection Act or the Minimum Wage Law, the
10Department of Labor shall revoke the certification as soon as
11practicable. Upon written notice of the revocation of its
12certification, the restaurant shall be removed from the
13Department's website and shall not be permitted to display the
14program certification.
15    (b) The Department shall fine any restaurant that violates
16any provision of this Act up to $1,500 per day for each
17violation, payable to the Wage Theft Enforcement Fund.
 
18    Section 25. Rulemaking. The Department of Labor may adopt
19rules to implement and enforce the provisions of this Act.
 
20    Section 90. The Minimum Wage Law is amended by changing
21Section 4 as follows:
 
22    (820 ILCS 105/4)  (from Ch. 48, par. 1004)

 

 

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1    Sec. 4. (a)(1) Every employer shall pay to each of his
2employees in every occupation wages of not less than $2.30 per
3hour or in the case of employees under 18 years of age wages of
4not less than $1.95 per hour, except as provided in Sections 5
5and 6 of this Act, and on and after January 1, 1984, every
6employer shall pay to each of his employees in every
7occupation wages of not less than $2.65 per hour or in the case
8of employees under 18 years of age wages of not less than $2.25
9per hour, and on and after October 1, 1984 every employer shall
10pay to each of his employees in every occupation wages of not
11less than $3.00 per hour or in the case of employees under 18
12years of age wages of not less than $2.55 per hour, and on or
13after July 1, 1985 every employer shall pay to each of his
14employees in every occupation wages of not less than $3.35 per
15hour or in the case of employees under 18 years of age wages of
16not less than $2.85 per hour, and from January 1, 2004 through
17December 31, 2004 every employer shall pay to each of his or
18her employees who is 18 years of age or older in every
19occupation wages of not less than $5.50 per hour, and from
20January 1, 2005 through June 30, 2007 every employer shall pay
21to each of his or her employees who is 18 years of age or older
22in every occupation wages of not less than $6.50 per hour, and
23from July 1, 2007 through June 30, 2008 every employer shall
24pay to each of his or her employees who is 18 years of age or
25older in every occupation wages of not less than $7.50 per
26hour, and from July 1, 2008 through June 30, 2009 every

 

 

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1employer shall pay to each of his or her employees who is 18
2years of age or older in every occupation wages of not less
3than $7.75 per hour, and from July 1, 2009 through June 30,
42010 every employer shall pay to each of his or her employees
5who is 18 years of age or older in every occupation wages of
6not less than $8.00 per hour, and from July 1, 2010 through
7December 31, 2019 every employer shall pay to each of his or
8her employees who is 18 years of age or older in every
9occupation wages of not less than $8.25 per hour, and from
10January 1, 2020 through June 30, 2020, every employer shall
11pay to each of his or her employees who is 18 years of age or
12older in every occupation wages of not less than $9.25 per
13hour, and from July 1, 2020 through December 31, 2020 every
14employer shall pay to each of his or her employees who is 18
15years of age or older in every occupation wages of not less
16than $10 per hour, and from January 1, 2021 through December
1731, 2021 every employer shall pay to each of his or her
18employees who is 18 years of age or older in every occupation
19wages of not less than $11 per hour, and from January 1, 2022
20through December 31, 2022 every employer shall pay to each of
21his or her employees who is 18 years of age or older in every
22occupation wages of not less than $12 per hour, and from
23January 1, 2023 through December 31, 2023 every employer shall
24pay to each of his or her employees who is 18 years of age or
25older in every occupation wages of not less than $13 per hour,
26and from January 1, 2024 through December 31, 2024, every

 

 

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1employer shall pay to each of his or her employees who is 18
2years of age or older in every occupation wages of not less
3than $14 per hour; and on and after January 1, 2025, every
4employer shall pay to each of his or her employees who is 18
5years of age or older in every occupation wages of not less
6than $15 per hour.
7    (2) Unless an employee's wages are reduced under Section
86, then in lieu of the rate prescribed in item (1) of this
9subsection (a), an employer may pay an employee who is 18 years
10of age or older, during the first 90 consecutive calendar days
11after the employee is initially employed by the employer, a
12wage that is not more than 50¢ less than the wage prescribed in
13item (1) of this subsection (a); however, an employer shall
14pay not less than the rate prescribed in item (1) of this
15subsection (a) to:
16        (A) a day or temporary laborer, as defined in Section
17    5 of the Day and Temporary Labor Services Act, who is 18
18    years of age or older; and
19        (B) an employee who is 18 years of age or older and
20    whose employment is occasional or irregular and requires
21    not more than 90 days to complete.
22    (3) At no time on or before December 31, 2019 shall the
23wages paid to any employee under 18 years of age be more than
2450¢ less than the wage required to be paid to employees who are
25at least 18 years of age under item (1) of this subsection (a).
26Beginning on January 1, 2020, every employer shall pay to each

 

 

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1of his or her employees who is under 18 years of age that has
2worked more than 650 hours for the employer during any
3calendar year a wage not less than the wage required for
4employees who are 18 years of age or older under paragraph (1)
5of subsection (a) of Section 4 of this Act. Every employer
6shall pay to each of his or her employees who is under 18 years
7of age that has not worked more than 650 hours for the employer
8during any calendar year: (1) $8 per hour from January 1, 2020
9through December 31, 2020; (2) $8.50 per hour from January 1,
102021 through December 31, 2021; (3) $9.25 per hour from
11January 1, 2022 through December 31, 2022; (4) $10.50 per hour
12from January 1, 2023 through December 31, 2023; (5) $12 per
13hour from January 1, 2024 through December 31, 2024; and (6)
14$13 per hour on and after January 1, 2025.
15    (b) No employer shall discriminate between employees on
16the basis of sex or mental or physical disability, except as
17otherwise provided in this Act by paying wages to employees at
18a rate less than the rate at which he pays wages to employees
19for the same or substantially similar work on jobs the
20performance of which requires equal skill, effort, and
21responsibility, and which are performed under similar working
22conditions, except where such payment is made pursuant to (1)
23a seniority system; (2) a merit system; (3) a system which
24measures earnings by quantity or quality of production; or (4)
25a differential based on any other factor other than sex or
26mental or physical disability, except as otherwise provided in

 

 

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1this Act.
2    (c) Every employer of an employee engaged in an occupation
3in which gratuities have customarily and usually constituted
4and have been recognized as part of the remuneration for hire
5purposes is entitled to an allowance for gratuities as part of
6the hourly wage rate provided in Section 4, subsection (a) in
7an amount not to exceed 40% of the applicable minimum wage rate
8through June 30, 2024. From July 1, 2024 through December 31,
92024, such allowance for gratuities shall not exceed 20% of
10the applicable minimum wage rate. From January 1, 2024 through
11December 31, 2025, such allowance for gratuities shall not
12exceed 10% of the applicable minimum wage rate. The Director
13shall require each employer desiring an allowance for
14gratuities to provide substantial evidence that the amount
15claimed, which may not exceed the allowance amount prescribed
16in this subsection 40% of the applicable minimum wage rate,
17was received by the employee in the period for which the claim
18of exemption is made, and no part thereof was returned to the
19employer. On and after January 1, 2026, an employer shall not
20be entitled to an allowance for gratuities and shall pay each
21employee no less than the applicable minimum wage rate. An
22employer may not keep any gratuities received by its employees
23for any purposes or allow managers or supervisors to keep any
24portion of employees' gratuities, regardless of whether or not
25the employer takes an allowance for gratuities. Nothing in
26this subsection shall be construed to prohibit an otherwise

 

 

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1valid pooling of gratuities among nonmanagerial and
2nonsupervisory employees.
3    (d) No camp counselor who resides on the premises of a
4seasonal camp of an organized not-for-profit corporation shall
5be subject to the adult minimum wage if the camp counselor (1)
6works 40 or more hours per week, and (2) receives a total
7weekly salary of not less than the adult minimum wage for a
840-hour week. If the counselor works less than 40 hours per
9week, the counselor shall be paid the minimum hourly wage for
10each hour worked. Every employer of a camp counselor under
11this subsection is entitled to an allowance for meals and
12lodging as part of the hourly wage rate provided in Section 4,
13subsection (a), in an amount not to exceed 25% of the minimum
14wage rate.
15    (e) A camp counselor employed at a day camp is not subject
16to the adult minimum wage if the camp counselor is paid a
17stipend on a onetime or periodic basis and, if the camp
18counselor is a minor, the minor's parent, guardian or other
19custodian has consented in writing to the terms of payment
20before the commencement of such employment.
21(Source: P.A. 101-1, eff. 2-19-19.)