East Central Reporter

State Representative Adam Niemerg (R-Dieterich) has taken a stand in support of service industry workers by opposing House Bill 5345, which seeks to eliminate the tip credit in Illinois. The bill, if passed, could have detrimental effects on both employees and consumers, prompting Niemerg to urge workers and the public to voice their opposition to their state representatives and senators.

Speaking out against the proposed legislation, Rep. Adam Niemerg highlighted the negative impact it could have on service industry workers, stating, "This proposal is so bad for service industry workers that the Democrats on the committee had to be substituted out so they wouldn’t be on record voting for a bill that hurts their own constituents." Niemerg emphasized the bipartisan nature of the opposition vote in the Labor Committee, expressing hope that the growing resistance could prevent the bill's passage and protect restaurant jobs while keeping costs down for consumers.

According to information provided by the Illinois Restaurant Association, the median tipped employee in Illinois currently earns more than $28/hr, significantly higher than the state minimum wage of $14/hr. Additionally, existing laws mandate that tipped employees must earn at least the minimum wage, with restaurant owners required to make up the difference if necessary. The potential elimination of the tip credit could lead to increased labor costs for operators, potentially resulting in raised menu prices, reduced staff hours, job cuts, and even closures.

Moreover, data from states that have already eliminated the tip credit show lower tip percentages, with California and Washington ranking at the bottom. Should the legislation be enacted, customers may face higher costs when dining out, with service charges becoming more common.

In essence, the proposed bill threatens to disrupt the established payment structure for servers and bartenders in Illinois, jeopardizing employee earnings and imposing significant financial burdens on restaurant owners. Rep. Adam Niemerg's opposition underscores the importance of protecting the livelihoods of service industry workers and maintaining affordability for consumers.