Mayor Brandon Johnson celebrates Chicago's One Fair Wage Ordinance at rally
Tipped workers will see their minimum wage increased to $12.62 on July 1
CHICAGO (WLS) -- Next week, tipped workers at restaurants will make more than they ever have before in Chicago.
Some are celebrating, while others are pushing back, saying the fair wage ordinance is putting restaurants out of business.
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Monday, Mayor Brandon Johnson joined other elected leaders and members of the restaurant industry to celebrate the second phase of Chicago's fair wage ordinance.
The celebration taking place at TNT Rooftop in the Austin neighborhood.
"This was a bold ordinance that reaffirms that right here in Chicago everyone gets to earn a fair wage and here in Chicago, all workers are heard, seen and valued."
The law passed by City Council in 2023 has been gradually increasing the hourly wage for tipped workers.
Starting July 1, tipped workers will see a hike in their hourly wage, from $11.02 to $12.62 per hour.
Chicago's One Fair Wage Ordinance phases out the subminimum wage over five years, so tipped works can earn a full minimum wage with tips on top.
"Here Chicago, leads," Richard Rodriguez, national policy director for One Fair Wage, said. "Too many workers across Illinois are still left behind, stuck on sub minimum wages. Immigrants, women and people of color are the backbone of the service industry and they deserve better."
RELATED: Chicago minimum wage set to increase July 1 along with changes for paid time off
Also taking place on July 1, the minimum wage in Chicago will go up to $16.60 an hour for employers with four or more employees.
The Illinois Restaurant Association has pushed back against the ordinance. They said in a statement in part, "It is an incredibly difficult time for restaurants. Many are struggling to stay open. The policy is pushing independent restaurants to the brink, driving up prices for consumers and putting thousands of tipped employees out of jobs. We strongly urge the Chicago City Council to pause and assess the real harm of the tip credit elimination before more damage is done by considering the ordinance recently introduced by Alder Bennett Lawson."
For more information on the labor laws, visit Chicago.gov/LaborStandards.
