Throughout 2019, the IRA achieved several legislative goals and addressed regulatory challenges at the local, state, and federal levels. 

When the Illinois General Assembly and Governor Pritzker planned to raise the state's minimum wage to $15 in early 2019, the IRA worked relentlessly to protect the current 60/40 tip credit ratio, and roll out the increase over a period of six years - despite calls to eliminate or reduce tip credit and ramp up the minimum wage at a faster pace.

After more than two years of debate, the Chicago City Council passed a Fair Workweek ordinance in July 2019 that will regulate employers' scheduling practices. Throughout the process, the IRA was in constant communication with Mayor Lightfoot and her team, aldermen, and stakeholders from all sides in order to maintain and secure restaurant-friendly concessions in the final ordinance. Restaurants with less than 250 employees and less than 30 global locations are exempt from this ordinance. We commend Mayor Lightfoot and her administration for their commitment to ensuring all sides were heard in the crafting of this legislation. 

In late 2019, the Chicago City Council passed a $15 minimum wage ordinance that maintains the tip credit at the 60/40 ratio allowed by state law. For months, the IRA worked to educate members of the City Council and Mayor Lightfoot about the crucial importance of the tip credit for employers. Without the persistent advocacy of IRA operators and their employees, the City Council would have passed a drastic minimum wage ordinance that would have eliminated tip credit entirely. We commend Mayor Lightfoot and the City Council for listening to hundreds of local restaurant operators, servers, and bartenders that shared their steadfast support of maintaining the current tip credit model. 

The IRA held productive Lobby Days in Springfield and Washington D.C., attended the NRA/CSRA Government Affairs Conference in Tucson, Arizona, and hosted several IRA PAC events that help support elected officials who understand the issues of the restaurant and hospitality industry. 

The National Restaurant Association continues to advocate for a fix to the restaurant depreciation tax credit (QIP), a joint-employer standard benefiting franchisees, and comprehensive immigration reform.

New Laws in Effect January 1, 2020

Local

Chicago Restaurant Tax Increase

The Chicago City Council has passed a 0.25% increase to the city's current 0.25% restaurant tax in the 2020 budget package.  Starting January 1, 2020, the city of Chicago's restaurant tax rate will be 0.50%.

Starting January 1, 2020, the total sales tax for restaurants in the city of Chicago will be 10.75% (inclusive of the city of Chicago's 0.50% restaurant tax). For restaurants located within the MPEA Food and Beverage Tax zone, the total sales tax will be 11.75% (inclusive of the city of Chicago's 0.50% restaurant tax and the 1.00% MPEA food and beverage tax).

State

Illinois Minimum Wage Increase

Effective January 1, 2020, Illinois' minimum wage for nontipped employees will increase to $9.25/hour. The minimum wage for tipped employees will increase to $5.55/hour. 

Effective July 1, 2020, Illinois' minimum wage for nontipped employees will increase to $10/hour. The minimum wage for tipped employees will increase to $6.00/hour. 

Click here for Illinois' upcoming minimum wage rates by year.

Sexual Harassment Prevention and Policy Law

New legislation takes effect on January 1, 2020 that requires restaurant and bar employers to have a written sexual harassment policy, available in English and Spanish. The IRA has developed a policy template exclusively for IRA members that has been vetted by our attorneys. Click here to sign in and download the policy template policy in English and Spanish. 

The Illinois Department of Human Rights has announced that employers have until December 31, 2020 to comply with the training requirement of the new law. Approved online training is available through ServSafe's Sexual Harassment Prevention for the Restaurant Industry program in English and Spanish. 

Click here for more information on the new sexual harassment prevention law.

Single-Occupancy Restroom Signage Law

Effective January 1, 2020, all single-occupancy restrooms in public bathrooms must be outfitted with exterior signage that marks the single-occupancy restroom as a restroom and does not indicate any specific gender (rather than exterior signage indicating "all-gender" or "gender-neutral").

The IRA is currently in communication with the Illinois Department of Public Health (IDPH) regarding the roll out of this new law. IDPH will be issuing additional guidance for businesses in the coming weeks. 

Click here to read the law.