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A new proposal would give restaurants two years to have all
tipped workers increased to Chicago’s minimum wage, which is
$15.80 an hour, plus any tips they earn. Tipped workers
currently make $9 an hour plus tips, but employers are required
to make up the difference if the combined amount of hourly pay
and tips does not equal the full minimum wage.
Chicago Mayor Brandon Johnson has endorsed the One Fair Wage
movement, saying workers who earn the so-called tipped minimum
wage are more vulnerable to sexual harassment and abuse than
other employees.
“This is about investing in people, Black women, brown women,
heads of households, because by investing in people we
strengthen the backbone of our economy,” Johnson said.
Rebekah Paxton, director of research at the nonprofit Employment
Policies Institute, said one-flat-wage states see lower tips and
some workers will most likely lose their jobs.
“American economists across the board agree that if you raise
the minimum wage, jobs suffer, because obviously that raises
labor costs for any business,” Paxton said.
The Illinois Restaurant Association has gone on record opposing
the idea, saying it will reduce the workforce in bars and
restaurants.
Paxton said there has been pushback from tipped restaurant
employees, including servers and bartenders, who say it would
result in lower tip income.
“They don’t want this to be changed because essentially it turns
it into a flat wage job,” said Paxton. “A lot of people are
attracted to the hospitality and restaurant industry because
they can make tips and interact with customers, so a lot of
servers are pretty opposed to this.”
The research shows that six out of seven states that have
eliminated their tip credit are in the bottom half of all state
tipping percentages.
The statewide minimum wage in Illinois increased to $13 on Jan.
1, and will increase to $14 Jan. 1, 2024. Tipped workers get 60%
of the state’s minimum wage or $7.80 per hour for workers age 18
and older. A proposal to bring a minimum wage for tipped workers
statewide never advanced at the Illinois Statehouse.
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