East Central Reporter

State Rep. Blaine Wilhour, R-Beecher City, is vehemently opposing House Bill 5345, a proposed change to the law that allows lower hourly wages for Illinoisans who receive cash tips, particularly those in the restaurant and delivery sectors. Wilhour expressed his concerns about the potential consequences of the legislation, stating, “you’re going to see less restaurants, you’re going to see less jobs. The consumers are going to be the ones who pay, that’s who always pays the bill at the end of the day. It’s basically a regressive tax on working people.”

Moreover, Wilhour emphasized that implementing a full minimum wage would burden businesses that are still recovering from the impact of the pandemic, rather than allowing the free market to naturally adjust. He believes that the current system, which relies on a blend of base wages and tips to ensure a living wage for tipped employees, is effective in supporting both workers and businesses.

The Illinois Restaurant Association echoes Wilhour's sentiments, highlighting that the current law mandates that tipped employees must earn at least the $14/hour minimum wage, dispelling the misconception that tipped workers earn less than minimum wage. Removing the tip credit, as proposed in HB 5345, would shift the entire financial burden onto operators, significantly increasing their payroll costs and potentially resulting in lower wages for employees. The association also points out that the median tipped restaurant worker in Illinois currently earns over $28.00 per hour.

A recent CorCom study revealed that a majority of tipped employees are apprehensive about the possibility of customers ceasing to tip if restaurants impose a surcharge to offset expenses. Additionally, 87% of those surveyed believe that the existing system works effectively and should not be altered.

In solidarity against House Bill 5345, the Illinois Restaurant Association is part of Protect Illinois Hospitality, a coalition comprising chambers of commerce, service operators, trade organizations, and local small business groups. The coalition is actively opposing the proposed change and encourages individuals to reach out to their state legislators through protectillinoishospitality.com for further information and engagement in the cause.