CHICAGO (WLS) — Anticipation builds at Chicago City Hall today as discussions intensify over the future of tipped wages, setting the stage for a potential face-off.
Some City Council members are advocating to halt the gradual increase in tipped wages.
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Two years ago, an ordinance was introduced to incrementally raise the earnings of tipped employees. However, various Chicago restaurants and small enterprises argue that this change has significantly impacted their financial health.
This initiative is spearheaded by a coalition of aldermen and restaurant proprietors, with support from The Illinois Restaurant Association.
“Employers are obligated to ensure that tipped workers make at least the minimum wage by supplementing their base pay with tips if necessary,” explained Sam Toia, the president and CEO of the Illinois Restaurant Association.
The existing One Fair Wage ordinance is designed to eliminate sub-minimum wages within five years, ultimately ensuring that tipped workers receive the full minimum wage in addition to their tips.
Right now, the hourly wage for tipped workers is $12.62/hour.
Chicago’s minimum wage is $16.60 for employers with four or more employees.
The proposal before City Council, however, would freeze the city’s tip credit, providing needed stability. Proponents say for restaurants like Bronzeville Winery, facing growing costs and economic uncertainty.
The owner, Eric Williams, said he cannot stay in business if wages continue to increase and City Council doesn’t step in.
“Last year, to be very transparent., we lost $60,000,” Williams said. “Of that $60,000, $40,000 of that was because of the One Fair Wage and the increase in the minimum wage for tip workers, I put in it’s a lot of my own money just to keep the place going,” Eric Williams, owner of Bronzeville Winery, said.
“I am really concerned, because I make significantly more from tips than I would from a flat hourly wage, but because restaurants are facing higher base costs, they have had to cut hours,” Shanell Oliver, a server at Bronzeville Winery. “I’m working fewer shifts. I’m taking home much less money, which is putting a real strain on my family.”
An opposing group of restaurant workers impacted by the proposed wage freeze also rallied at City Hall Wednesday morning, saying this vote could take away raises they were counting on at a time when rent, groceries, childcare and transportation costs continue to rise.
“I find it disgusting that some in City Council would think that it’s appropriate to take wages from workers during such an economically and politically volatile time, not just in our city, but in our country,” Raegn Draper, executive director of CHAAD Project.
“Sub minimum wage is not enough for anyone to live on and to try to freeze it or stop it at this point is inhumane, like rent is ridiculous,” bartender Cheryl Taylor said. “Rent has gone up over 40% in the last two years, and if you freeze our wages, how do you expect us to live? Some of us actually go food pantries, to make it week.”
If the effort were to pass, Mayor Brandon Johnson is expected to veto it.
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