For the first time in Chicago’s history, tipped workers shall earn the same minimum wage as others. This comes after a long struggle from service workers and general workers to end what they called “the subminimum wage.” Before this policy passed tipped workers had a much lower minimum wage than the rest of the working class in Chicago. This was because tipped workers receive tips and so the logic was that its fine that they make lower because people tip them.
This way of doing things as wrong, some people would get tipped a lot one one day and receive very little tips the next day. Many tipped workers would have their tips stolen by their bosses. This means while, yes, some workers were seeing gratitude, many workers weren’t being tipped enough or were having their tips stolen. By making the minimum wage equal for all, Chicago has placed the wages for tipped workers right next to every other kind of worker.
Wage Rollout
Tipped workers won’t be receiving an equal wage immediately. However, by 2025, the wages shall be equal. “Under the guidelines, the $9 hourly wage would rise by 8% for five years until it reaches the $15.80 total,” according to NBC Chicago.
Furthermore, 2025 is only one and a half years away, so that means that the gradual increase of tipped workers wages wasn’t delated for too long.
When generally talking about wages increases, there is typically a gradual increase to allow the economy to prepare. The current minimum wage will keep up with inflation as a result of policy decisions earlier this year. So, as inflation increases the minimum wage of Chicago shall match it to reflect the pre inflated wage. Tipped workers organized for years to make this happen and now all of their effort has paid off. Tipped worker wages will begin increasing on July 1.
Written by Kenneth Mazerat
Sources
NBC Chicago: Chicago eliminates subminimum wage for tipped workers. Here’s what that means
USA Today: Historic change for tipped workers: Subminimum wage to end in Chicago restaurants, bars by Sara Chernikoff
Illinois Policy: Tipped workers in Chicago will be phased into the city’s $15.80 minimum wage. Proponents said higher wages will help staffing shortages, but opponents said it will lead to higher costs, fewer jobs and maybe backfire for tipped workers’ pay. by Dylan Sharkey
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