A new Illinois law requires restaurants to accept cash for in-person purchases under $500—and most owners haven't heard about it yet.
Most Illinois restaurant owners don't realize that a provision buried in HB4592 will reshape how they handle payments starting January 1, 2028. The law mandates that restaurants with a human cashier on staff must accept cash for any in-person transaction under $500, or face escalating fines.
This isn't optional. It's a legal requirement that applies to restaurants alongside fuel stations, grocery stores, and pharmacies—any business that staffs a cashier and processes in-person sales.
Under Section 10(a) of HB4592, restaurants cannot refuse cash payments for transactions under $500. If your business has someone working a register or taking payments in person, you must accept cash. The law recognizes a 30-day cure window: if you're caught in violation, you'll have 30 days to fix the problem before any fine is imposed.
The penalty structure is escalating. A first violation costs $50. A second violation costs $100. A third or subsequent violation costs $500 per incident. However, fines are capped at $5,000 per calendar year, so the total exposure is limited.
This applies only to transactions under $500. Larger purchases are not covered by the mandate.
The mandate applies to restaurants that have staff accepting payments in person. If your restaurant operates entirely through a kiosk, app, or delivery platform with no human cashier, this law doesn't apply to you. But if you have a front-of-house employee taking cash or card payments, you're covered.
The law doesn't require you to encourage cash or advertise it. It simply prohibits you from refusing it when a customer offers it for a sub-$500 purchase.
If your restaurant has already moved to cashless or card-only payment systems, you'll need to plan for cash acceptance by January 1, 2028. This means ensuring your POS system can process cash, that your staff is trained to handle it, and that you have secure cash handling procedures in place.
For restaurants that already accept cash, compliance is straightforward—no changes needed. For those that have gone cashless, the transition requires planning: cash drawers, change management, reconciliation procedures, and staff training.
The 30-day cure window is important. If a violation is discovered, you won't face a fine immediately. You'll have a month to come into compliance. This gives restaurants time to adjust if an issue is identified.
January 1, 2028 is still ahead. Restaurants should begin reviewing their payment systems now to understand what changes, if any, will be needed. If you operate cashless by design, consult with your POS provider about cash payment capabilities and with your accountant about cash handling procedures.
The Illinois Restaurant Association and other trade groups have resources available to help members understand compliance requirements specific to their operations.
Source: HB4592, Section 10(a), Page 2. Effective January 1, 2028.