Chicago City Wire

Elizabeth "Lisa" Hernandez introduced HB2982 in the Illinois House on Feb. 6, 2025, during the general assembly session 104, according to the Illinois General Assembly.

According to the Illinois General Assembly site, the legislature summarized the bill's official text as follows: "Amends the Minimum Wage Law. Provides that, on and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in the Act. Provides for additional notice requirements that employers must provide to employees who receive gratuities. Provides that any employer or his agent, or the officer or agent of any private employer who violates that provision shall be liable to the Department of Labor for a penalty of up to $1,500 per day for each violation, payable to the Department's Wage Theft Enforcement Fund. Provides that every employer shall provide each employee who receives gratuities a notice containing specified information concerning the rate of pay. Amends the Illinois Wage Payment and Collection Act. Provides that no employer shall withhold from gratuities paid by credit card any credit card processing fees that the employer must pay in connection with the transaction. Provides that any service charge imposed by an employer on a customer shall be a gratuity and is the property of the employees. Effective July 1, 2025."

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill, effective July 1, 2025, amends the Illinois Minimum Wage Law to eliminate the allowance for gratuities by 2027, requiring employers to pay at least the applicable minimum wage rate without tip credits. Employers must provide written notice to employees who receive gratuities, detailing pay rates and employee rights regarding tips. It imposes penalties of up to $1,500 per day for violations. The bill also revises the Illinois Wage Payment and Collection Act to clarify that gratuities are employee property, prohibits credit card processing fee deductions from tips, and defines service charges as gratuities for employees. All funds from service charges must be disclosed as employee gratuities, and tip pooling remains permitted under the law.

Elizabeth "Lisa" Hernandez has proposed another three bills since the beginning of the 104th session.

Hernandez graduated from Morton College in 2001 with an AA and again in 2014 from Northeastern University with a BA.

Elizabeth "Lisa" Hernandez is currently serving in the Illinois State House, representing the state's 2nd House District. She replaced previous state representative Theresa Mah in 2023.

Bills in Illinois follow a multi-step legislative process, beginning with introduction in either the House or Senate, followed by committee review, floor debates, and votes in both chambers before reaching the governor for approval or veto. The General Assembly operates on a biennial schedule, and while typically thousands of bills are introduced each session, only a fraction successfully pass through the process to become law.

You can read more about bills and other measures here.

Bill Number	Date Introduced	Short Description
HB2982	02/06/2025	Amends the Minimum Wage Law. Provides that, on and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in the Act. Provides for additional notice requirements that employers must provide to employees who receive gratuities. Provides that any employer or his agent, or the officer or agent of any private employer who violates that provision shall be liable to the Department of Labor for a penalty of up to $1,500 per day for each violation, payable to the Department's Wage Theft Enforcement Fund. Provides that every employer shall provide each employee who receives gratuities a notice containing specified information concerning the rate of pay. Amends the Illinois Wage Payment and Collection Act. Provides that no employer shall withhold from gratuities paid by credit card any credit card processing fees that the employer must pay in connection with the transaction. Provides that any service charge imposed by an employer on a customer shall be a gratuity and is the property of the employees. Effective July 1, 2025.
HB2952	02/05/2025	Amends the Equitable Restrooms Act. In provisions concerning baby changing stations, provides that hotels and lodging facilities; public and private schools and educational institutions; small entertainment venues including, movie theaters and bowling alleys; healthcare facilities with public restrooms; transit public parks with restroom facilities; and standalone public parks with restroom facilities are subject to the provisions. Provides that a retail store of more than 3,000 square feet (rather than 5,000 square feet) that contain a restroom open to the public are subject to the provisions. Provides that a restaurant that has an occupancy of at least 40 persons (rather than 60 persons), among other criteria, are subject to the provisions of the Act.
HB2706	02/04/2025	Amends the Illinois TRUST Act. Provides that law enforcement may not: (i) retain information regarding the citizenship or immigration status or place of birth of any individual; (ii) give any immigration agent access, including by telephone or other communication medium (rather than only including by telephone), to any individual who is in that agency's custody; (iii) permit immigration agents' use of agency facilities or equipment, including any agency electronic databases not available to the public (rather than permit immigration agents use of agency facilities or equipment, including any agency electronic databases not available to the public, for investigative interviews or other investigative or immigration enforcement purpose); or (iv) provide information to any immigration agent regarding any individual in the agency's custody (rather than provide information in response to any immigration agent's inquiry or request for information regarding any individual in the agency's custody). Provides that law enforcement may not enter into or maintain any agreement regarding direct access to any electronic database or other data-sharing platform maintained by a law enforcement agency, or otherwise provide such direct access to a federal entity enforcing civil immigration law or any third parties unless such third parties certify that the information will not be used for civil immigration purposes or knowingly disseminated for any purpose related to civil immigration enforcement. Adds provisions from the Keep Illinois Families Together Act to the Illinois TRUST Act. Changes reporting requirements. Removes certain provisions from the legislative purpose. Changes definitions. Repeals the Keep Illinois Families Together Act. Effective immediately.
HB1867	01/29/2025	Amends the Property Tax Code. Provides that the maximum income limitation under the Low-Income Senior Citizens Assessment Freeze Homestead Exemption shall be adjusted each year by the annual cost of living increase, if any, in Social Security and Supplemental Security Income benefits that took effect during the immediately preceding calendar year. Amends the Energy Assistance Act. Provides that eligibility limits under the energy assistance program may not exceed the greater of (1) 150% of the federal nonfarm poverty level as established by the federal Office of Management and Budget or 60% of the State median income for the current State fiscal year as established by the U.S. Department of Health and Human Services, whichever is higher; or (2) the eligibility limit for the immediately preceding calendar year, increased by the annual cost of living increase, if any, in Social Security and Supplemental Security Income benefits that took effect during the immediately preceding calendar year. Effective immediately.