Chicago’s Tipped Workers
Chicago’s City Council passed a vote, on October 6, to raise the subminimum wage of tipped workers in the city. Tipped workers make a subminimum wage, meaning they have abase pay that is supported by tips. However, the average minimum wage worker doesn’t get tipped and has a base pay.
The raise will allow tipped Chicago workers to go from the usual wage of $9-$9.48 up to the minimum wage pay of $15.80 per hour. This is under the One Fair Wage Ordinance, helping the likes of waitresses, bartenders, and other tipped workers.
The ordinance was introduced this past summer, it won by 36 to 10 votes. Mayor Brandon Johnson supported it and also helped negotiate an agreement with the Illinois Restaurant Association.
Subminimum Pay
The subminimum wage was set by the Fair Labor Standards Act (FLSA), setting the minimum pay at $2.13 per hour. However, most states don’t fully abide by this and pay a slightly higher wage. While a few other states pay workers the set minimum wage before they are tipped.
The pay raise will start July 1, 2024. The increase will be gradual. With the current subminimum rate being about 60% less than regular minimum wage, there is a five year plan to help raise it. Every year the subminimum rate will rise by eight percent each July 1 until it is equal to the minimum wage rate of $15.80.
Those in advocacy of erasing the law, believe it will now allow for working class citizens to have a livable wage as well address issues of racism and sexism within the restaurant industry. Moreover, advocates of the One Fair Wage Ordinance believe it represents a major win for an industry that is majorly filled with young women of color.
Wage Change
While many are in support of the new legislation just as many aren’t. Some believe that to raise the wage will cause financial strain on restaurants as well as raise prices for customers. However, Chicago isn’t the first city to do this. Multiple states have allowed workers to get full wage and tips such as California, Montana, Washington, Nevada and more.
Written by AriAnna Rathers
Sources
USA Today– Historic change for tipped workers: Subminimum wage to end in Chicago restaurants, bars
CBS News– Chicago City Council votes to phase out subminimum wage for tipped workers
NBC Chicago– Chicago eliminates subminimum wage for tipped workers. Here’s what that means
Featured and Top Image Courtesy of Thomas Hawk’s Flickr Page – Creative Commons License
Inset Image Courtesy of Iain Farrell’s Flickr Page – Creative Commons License
