Can Illinois restaurants still add a service charge in 2027?
Quick answer
Only as an automatic gratuity whose percentage is disclosed in every priced menu, offer or ad, and whose full amount goes to employees. From January 1, 2027, any other mandatory fee, such as a kitchen or service fee the restaurant keeps, must be built into the listed price (815 ILCS 505/2MMMM, Public Act 104-0472).
Effective Jan 1, 2027: Illinois prices must include every mandatory fee (815 ILCS 505/2MMMM, Public Act 104-0472). Source: Public Act 104-0472
Short version: the answer is above. If you need to comply, the Illinois hidden fees (all-in price) kit gives you the templates, checklist and official sources for this law. $49 one-time, instant download.
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Law | 815 ILCS 505/2MMMM, added by Public Act 104-0472 (HB 228); effective January 1, 2027 | Official source |
| Rule | Advertised, displayed or offered prices must include all mandatory fees or surcharges; government taxes and actual shipping costs excluded | Official source |
| Restaurants and hotels | Automatic and mandatory gratuities comply if every offer or ad with pricing clearly discloses the percentage; all other mandatory fees go in the price (2MMMM(h)) | Official source |
| Gratuity | Money paid above the price, the total amount of which is received by the employees, none retained by the business | Official source |
| Delivery apps | Must show each restaurant's delivery cost and fees and an itemized subtotal before checkout (2MMMM(c)) | Official source |
| Penalty | Up to $50,000, or up to $50,000 per violation with intent to defraud, plus up to $10,000 per violation against a person 65 or older (815 ILCS 505/7) | Official source |
| Private suits | Section 10a private actions do not apply to violations of 2MMMM (subsection (m)) | Official source |
| Last verified | October 20, 2026 | Astor Ventures |
Is an automatic gratuity still allowed?
Yes. A food or beverage service establishment, including a hotel, complies for automatic and mandatory gratuities if every offer or advertisement that includes pricing clearly and conspicuously discloses the percentage. The Act defines a gratuity as money whose total amount is received by the employees who provide the service, with none kept by the business.
What about a kitchen fee or a 3% service fee?
If the customer has to pay it, it is a mandatory fee, and from January 1, 2027 it has to be inside the price on the menu, menu board, website or ad. The carve-out covers only automatic and mandatory gratuities. Taxes that a government requires you to collect can still be added at checkout.
What is the fine?
A violation is an unlawful practice under the Consumer Fraud Act. The Attorney General or a State's Attorney can ask a court for up to $50,000, up to $50,000 per violation if there was intent to defraud, and up to $10,000 more per violation against a person aged 65 or older. Subsection (m) says the private-action section, 10a, does not apply.
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What else do people ask?
When does the Illinois law start?
January 1, 2027 (Public Act 104-0472).
Can the restaurant keep part of an automatic gratuity?
The Act defines gratuities as amounts received in full by employees, with none retained by the business. A charge the business keeps does not fit that definition.
Do delivery apps have their own rules?
Yes. Subsection (c) sets disclosure and subtotal rules for food delivery platforms.
Is this legal advice?
No. General information only.
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