CHICAGO – In a significant move, Chicago Mayor Brandon Johnson is anticipated to veto the City Council’s recent decision to halt the progression of tipped wage increases within the city, a decision set to be announced on Wednesday.
The One Fair Wage ordinance, implemented two years ago, was designed to incrementally raise the wages of tipped workers to match the full minimum wage, aiming to ensure fair compensation for these employees.
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However, in a surprising turn of events, the City Council voted last week to put a hold on this wage increase, a move that Mayor Johnson has openly criticized, labeling it as “shameful.”
Restaurant owners, on the other hand, argue that the financial strain is becoming unbearable. They assert that operating on narrow profit margins, coupled with rising expenses, has already led many establishments to shut their doors.
At present, tipped workers in Chicago earn an hourly wage of $12.62, a figure that has been a focal point in the ongoing debate over fair wages and business sustainability.
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.
Mayor Johnson says active food business licenses have gone up by more than 1,400 since One Fair Wage took effect.
“We can ensure our workers have the support they need and grow business in our city,” Johnson said. “And, for these reasons, I will continue to act in my full authority and ensure that this ordinance does not see the full light of day.”
City Council’s vote was only four votes shy of reaching the threshold needed to avoid a veto by the mayor.
This would be the mayor’s third veto in office.
Former Mayors Lori Lightfoot and Rahm Emanuel never issued one.
The video in the player above is from an earlier report.
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