Efforts to abolish Chicago’s tipped-minimum wage make progress

Ongoing legislative efforts to eliminate Chicago’s tipped-minimum wage are advancing after the City Council Rules Committee approved a measure to phase out the wage disparity on Wednesday. The initiative to eliminate sub-minimum wage could be fully approved as early as October, according to Crain’s.

Introduced in July, the legislative effort seeks to gradually raise the sub-minimum wage by approximately $6 over a 2-year period. This change would equate the tipped wage to Chicago's standard minimum wage—currently $15.80 for companies with over 21 employees and $15 for smaller enterprises. If the proposed wage hike comes into effect, tips would still be an additional income for workers.

Mayor Brandon Johnson has been outspoken in his support of the initiative, which also garners support from the national One Fair Wage campaign. The path to reform has faced opposition from business owners and restaurant groups.

In an interview with CNBC, Scott Weiner, co-owner of Chicago-area restaurant group 50/Fifty expressed criticisms of the proposed legislation. “Coming through a pandemic, with inflation, it's just really not a great time to start upending the entire restaurant industry”, said Weiner.

The Illinois Restaurant Association has also campaigned against the legislation, citing data that suggests eliminating the tipped-minimum wage could lead to mass layoffs, increased menu prices, and lower overall pay for service workers.

As the city gears up for more discussions on this critical issue, proponents of the ordinance continue to rally support, emphasizing the drive to ensure fair compensation for all workers in Chicago.

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