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Approved Amendment to HB 2982 Could Cost State $270 Million Per Year
SPRINGFIELD – Protect Illinois Hospitality, a coalition of tipped workers, service operators, and local business owners, released the following statement after the House Executive Committee approved HB 2982, which will eliminate the state tip credit by 2027.The bill includes a recent amendment to offer a $1.50 tax credit per hour per employee for employers who choose to forego the tip credit before it is eliminated. The 120,000 servers and bartenders in Illinois work a total of approximately 180 million hours per year. If every restaurant took the $1.50 tax credit, the state would lose $270 million in taxes per year.
“We’re disappointed that the House Executive Committee approved legislation that would not only lead to less take-home pay for workers and increased costs for both restaurants and consumers, but could cause the state to lose $270 million in taxes per year at a time when lawmakers should be focused on growing revenue. Current law already requires that every tipped employee in Illinois make at least minimum wage, with the median tipped restaurant worker in Illinois earning an average of $28.48 per hour under the current system. Eliminating the tip credit would fundamentally alter the earning potential of tipped workers in restaurants, bars, breweries, hotels, and other businesses. It would also mean higher prices for customers, job loss for workers, and have a devastating impact on local business owners. The only thing this legislation will succeed at is guaranteeing less money for the state, for hardworking tipped workers, for local businesses owners, and for consumers. Simply put, nobody wins in this scenario and Illinois residents deserve better.”
About Protect Illinois Hospitality
Protect Illinois Hospitality is a coalition of tipped workers, chambers of commerce, service operators, and local small businesses who strongly support keeping the tip credit available for Illinois businesses. The coalition includes the National Restaurant Association, Illinois Restaurant Association, Bolingbrook Chamber of Commerce, Chicagoland Chamber of Commerce, Chicago Southland Black Chamber of Commerce, Cosmetologists Chicago, Greater Oakbrook Chamber of Commerce, Greater Springfield Chamber of Commerce, Hospitality Business Association of Chicago, Illinois Licensed Beverage Association, Illinois Chamber of Commerce, Illinois Craft Brewers Guild, Illinois Grape Growers and Vintners Alliance, Illinois Hispanic Chamber of Commerce, Illinois Hotel and Lodging Association, Illinois Retail Merchants Association, McLean County Chamber of Commerce, Magnificent Mile Association, Naperville Area Chamber of Commerce, Naperville Development Partnership, National Federation of Independent Business, Quad Cities Chamber of Commerce, Sysco, Takeout 25, Wine and Spirits Distributors of Illinois, and the Woodstock Chamber of Commerce.
