40% Deduction in Tips

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Z in Chicago, Illinois

31 months ago

I currently work in a Restaurant for almost a year now and I have heard about a 40% deduction somewhere in your payroll, but now that I do my research, all I find out is it is called Tip Credit. So the minimum wage in Illinois is $8.25 so that 40% deduction is taken out of your hourly wage. So the minimum hourly wage for servers is $4.95. My question is, is it legal for employers to take a 40% out of your total tips from your hourly wage, EX. I make $100 in tips and worked for 10 hours. My wage for those hours are $49.50. I take my $100 cash tips home and from my paycheck, I receive $9.50 due to the 40% deduction from my tips. Is this legal?

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