Supporters of ending the tipped wage rally at the state Capitol
[April 23, 2025]
By Kevin Bessler | The Center Square
(The Center Square) – Restaurant workers rallied at the State Capitol
Tuesday demanding an end to the tipped wage in Illinois.
Critics of such a plan argue that under current Illinois law, tipped
workers already are required to earn the state minimum wage of $15 and
ending the tipped wage would lead to lost jobs and diminish earning
potential for tipper workers.
The group One Fair Wage and the Rainbow Push Coalition joined forces in
Springfield to call on lawmakers to eliminate the state tip credit. They
argue that Black tipped workers are overrepresented in the most casual,
lowest-paid segments of the restaurant industry where tips are meager.
Legislation has been introduced that would eliminate the state tip
credit by 2027.
Jacqueline Jackson, a member of the Rainbow Push Coalition, says the
subminimum wage continues to lock tens of thousands of Black workers
into poverty.
“That’s why One Fair Wage is pushing to raise the minimum wage to $15 an
hour,” said Jackson. ‘This is a legacy of slavery.”
In 2023, the Chicago City Council voted to eliminate the tipped wage,
raising the minimum wage for tipped workers from $9 an hour to $15.80
before tips. The plan will be phased in over five years.
Sam Toia, president of the Illinois Restaurant Association, said there
is no need to change the current system.
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Advocates for ending Illinois' tipped wage gather outside the
Illinois State Capitol
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“We think this is a solution to a problem that doesn't exist,” said
Toia. “Under current law, every tipped employee must earn at least
the state minimum wage. That means for some reason, an employee
makes less than the minimum wage, the employer must make up the
difference, and the notion that tipped employees make less than the
minimum wage is simply not true.”
Toia points to a survey his group conducted with the National
Restaurant Association that showed 86% of tipped restaurant servers
believe they will earn less if the tipped credit is eliminated, and
87% of tipped employees believe the current system works and does
not need to be changed.
Protect Illinois Hospitality, a coalition of tipped workers,
chambers of commerce, service operators and local small businesses,
has voiced support for keeping the tip credit available for Illinois
businesses.
“Eliminating the tip credit would fundamentally alter the earning
potential of tipped workers in restaurants, bars, breweries, hotels,
and other businesses. It would also mean higher prices for
customers, job loss for workers, and have a devastating impact on
local business owners,” the group said in a statement. |
