What do Chicago's tipped workers think of the new sub-minimum wage raise plan?

Craig Wall Image
Tuesday, September 19, 2023
What do Chicago's tipped workers think of new minimum wage plan?
As the Chicago City Council prepares ot vote on a new compromise plan to raise base wages for tipped workers, what do those workers think of the proposal?

CHICAGO (WLS) -- The Chicago City Council will vote on a new compromise proposal to raise the wages of tipped workers in the city.

Mayor Brandon Johnson touted the plan during his campaign, though it was encountered some stumbling blocks since he took office.

Right now, tipped workers are paid 60% of Chicago's minimum wage, but under the new agreement their pay would go up by 8% every year until it hits 100% in 2028, meaning the increase would be phased in over five years. The city initially proposed a two year phase-in.

The deal was worked out between city council leaders and the Illinois Restaurant Association, whose president, Sam Toia, praised the mayor for being willing to compromise.

"I'm in support of it," said J'Wann Smith, a server at Kindling restaurant downtown. "I personally don't like relying on tips or feeling like I have to. So a higher wage is always good."

Smith estimates with tips he averages $30 to $35 an hour. He thinks the new wage scale oculd cause some people to tip a little less.

Zach Currie, another server at Kindling, said he believes a higher base wage will help people in the industry earn a livable income even if tips drop.

"I think it will balance out in the long run. So it doesn't concern me that much," he said.

A recent online survey of 300 restaurant owners show 77% anticipated a very negative impact on operations, while 67% predicted overall wages will actually decrease for tipped employees.

Owners said the new wage rules will require new business strategies that may take some time to figure out.

"Phased in over five years, I think we've got some time to talk to our customers and determine whether we move into a more of a service charge model or we, you know, have to raise our prices a little bit," said Scott Weiner, co-owner of the Fifty/50 Restaurant Group.

Mayor Johnson declined to address those concerns, saying he has delivered on a campaign promise that the Illinois Restaurant Association signed off on.

"We were able to collaborate, bring all stakeholders together to finally abolish a system that really kept primarily black and brown women in a perpetual state of despair and economic depravity," Johnson said.

At least one customer ABC7 spoke to said the changes won't impact his dining habits.

"I don't think that's gonna affect how I tip I think good service deserves good tips, whether it's at the restaurant or any service industry," Ali Siddique said.

A city council committee will vote on the updated proposal Wednesday. If it passes, it will go before the full council on October 4.