Can my boss keep my tips or make me pool them in Illinois?

The short answer

Your boss can’t keep them. The Illinois Department of Labor says gratuities are the property of employees and employers can’t retain them. Tips have to reach you within 13 days after the end of the pay period you earned them in. A tip pool among employees, where the law permits one, is still allowed. Separately, your employer may credit tips toward up to 40% of your wages.

The rule in Illinois

Who owns tipsGratuities are the property of employees. Employers can’t retain them.
Payout deadlineWithin 13 days after the end of the pay period in which the tips were earned.
Tip poolsThe law doesn’t prohibit a tip pooling arrangement among employees as permitted by law.
Tip creditSince January 1, 2025, an employer may credit tips toward no more than 40% of the wages.
“The law requires gratuities to be paid to employees within 13 days after the end of the pay period during which the gratuities were earned.” (Illinois Department of Labor: gratuities press release (Feb. 10, 2020))

What’s different in Illinois

The federal rule says who may join a required pool and bars managers from it. Illinois adds its own payout clock in state law: your tips can’t sit with the house past 13 days after the pay period closes.

Your pay floor is also higher. The state lets employers take a tip credit capped at 40% of wages, which leaves a $9.00 cash wage against a $15.00 minimum, well above the federal $2.13. The press release from the labor department doesn’t spell out who can be in a pool; it says pooling among employees is allowed where the law permits it, so the federal limits on managers and supervisors are a good starting point.

Official sources

Last verified

. Checked the agency pages linked above.

Still open: The pooling statement comes from a 2020 Illinois Department of Labor press release, not a rule page, and it doesn’t list who may join a pool.

TipMax Answers explains public government guidance on pay and workplace rules in plain English for tipped workers. It is not legal, tax, or accounting advice. Rules change and local rules can add to them. Confirm with the agency linked on this page or a qualified professional. TipMax the app helps you track tips and pay; it doesn’t enforce wage law or decide disputes.