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Ask The Times: Tip wages

Q. Do employees who earn tips make less money than minimum wage?

A. The minimum wage in Illinois is $8.25 per hour, but state law allows employers to claim a tip credit. The credit is 40 percent of the minimum wage. This means employers may pay tipped employees an hourly wage as low as $4.95 (or $4.65 for the first 90 days of employment).

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