What percentage of tips do hair stylists keep in Chicago?
Almost all Chicago stylists keep 100% of their tips — federal law in the U.S. prohibits salon owners from taking employee tips. Some salons require small tip-outs to assistants or shampoo techs, but the bulk always stays with the stylist who provided the service.
Federal protection
Under the Fair Labor Standards Act, tips belong to the employee who earned them. Salon owners and managers in your state cannot legally pocket employee tips. Stylists may voluntarily share with assistants but it cannot be forced as a condition of employment.
Tip-outs to assistants
When a shampoo assistant or apprentice supports the service, the stylist commonly tips out 5–10% of their own tip to that team member. This is voluntary and stylist-initiated.
Booth renters and tips
Booth renters in Chicago are independent contractors and keep 100% of tips by default. They report tips as income on Schedule C at tax time.
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