HIGH ROADS KITCHEN PROGRAM
The bill modifies existing laws governing the allowance for gratuities, particularly affecting the timeline from which such allowances can be claimed. Starting July 1, 2024, the allowance for gratuities that employers can claim will be limited to 20% of the applicable minimum wage during the subsequent years, culminating in a complete elimination of gratuity allowances after January 1, 2026. Consequently, restaurants will be required to pay their employees at least the full minimum wage without considering tips, which could have significant implications for their business models and wage structures in the industry.
House Bill 3898, known as the High Roads Kitchen Program Act, aims to support and recognize restaurants that choose not to take any allowance for gratuities as part of their employee remuneration under the Minimum Wage Law. The bill establishes a program administered by the Illinois Department of Labor, which will certify participating restaurants that meet specific eligibility requirements. These requirements include not reducing employee wages through gratuity allowances, completing approved equity training programs, and maintaining a clean record regarding wage law compliance over the previous three years. This initiative is intended to promote fair labor practices and enhance equitable treatment of restaurant workers.
Supporters of HB 3898 argue that the elimination of gratuity allowances will lead to greater wage stability and reduce the reliance of restaurant workers on tips, promoting a more equitable pay structure. They also highlight the importance of equity training for staff as a means of fostering a fair workplace environment. However, opponents may raise concerns regarding the potential financial strain on small restaurant owners who may struggle to maintain profitability under these new wage requirements, fearing it could lead to job losses or operational closures.