A provision in HB4592 will require Illinois restaurants to accept cash for 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 require them to accept cash for transactions under $500 starting January 1, 2028. If your restaurant has at least one human cashier on staff, this law will affect how you handle payments.
Under Section 10(a) of HB4592, small businesses—including restaurants—that employ at least one cashier must accept U.S. coin and paper currency for any in-person transaction under $500. This applies whether customers want to pay entirely in cash or use it as part of a mixed payment method.
The law is straightforward: if a customer offers cash and the transaction is under $500, you cannot refuse it. You cannot direct them to card-only payment, digital wallets, or any other method.
The requirement applies to covered small businesses, which include restaurants, fuel stations, grocery stores, and pharmacies. The key trigger is whether you have at least one human cashier working. If your restaurant operates exclusively through digital ordering, kiosks, or app-based payment with no cashier present, this provision may not apply—but most full-service and counter-service restaurants will be affected.
Refusing to accept cash is classified as a petty offense. The penalties escalate:
However, the law includes a 30-day cure period. If you're found in violation, you'll have 30 days to correct the issue before any fine is imposed. This gives restaurants time to update policies, train staff, and adjust systems.
The law takes effect on January 1, 2028. You have time to prepare, but it's worth planning now—especially if your payment systems, POS software, or staff training need updates to accommodate cash handling.
Many restaurants have moved toward cashless or card-preferred models to reduce handling costs and speed up transactions. This law reverses that trend for transactions under $500, requiring you to maintain cash-handling capabilities. Consider the operational impact: you'll need to ensure your registers can process cash, your staff is trained to handle it, and your reconciliation procedures account for it.
The $500 threshold is also worth noting. Most restaurant transactions fall below this amount, so the requirement will apply to the vast majority of your daily sales.
Review your current payment policies and POS system capabilities. If you've eliminated cash handling, you'll need to reinstate it by January 1, 2028. Train your staff on the requirement and the 30-day cure period so they understand the law's intent. If you have questions specific to your operation, consult your accountant or legal advisor.
Source: Illinois HB4592, Section 10(a), Page 2. Effective January 1, 2028.