The Chicago City Council has given its approval to the One Fair Wage ordinance, marking a significant step toward eliminating the subminimum wage for tipped workers within the city over the next five years.
The move makes Chicago the largest city in the country requiring tipped workers to make the full minimum wage.
Beyond improving wages for tipped workers such as restaurant servers, bartenders, bussers, and runners—who currently earn just $9.48 per hour—the ordinance outlines an annual 8% wage increase until they reach parity with Chicago’s standard minimum wage of $15.80 per hour.
“The One Fair Wage ordinance embodies Chicago’s values of uplifting working people and addressing systemic inequities in the restaurant and hospitality industry, which in turn, will create a better economic future for tipped workers and our city,” said Mayor Brandon Johnson.
“This legislation is the culmination of years of advocacy and outreach by the One Fair Wage coalition, restaurant workers, and advocates, and will help address and support our work around youth unemployment and staffing in the restaurant industry.
Friday’s approval followed negotiations involving Mayor Johnson, the City Council, the One Fair Wage campaign and the Illinois Restaurant Association. Ald. Jessie Fuentes of the 26th Ward introduced the legislation, which garnered support with a 9-3 vote from the City Council’s Committee on Workforce Development.
This measure also seeks to address the staffing challenges faced by the restaurant industry and expand job opportunities for young individuals.
However, not every council member was on board, as it passed by a 36-10 vote. The 10 alderpeople who voted against it included Brian Hopkins (2nd), Nicole Lee (11th), Marty Quinn (13th), Matthew O’Shea (19th), Scott Waguespack (33rd), Nicholas Sposato (38th), Samantha Nugent (39th), Anthony Napolitano (41st), Brendan Reilly (42nd) and James Gardiner (45th).
Opponents of the ordinance argue that as restaurants and bars increase their prices to accommodate higher wages, customers may reduce their tips, and these added costs could become an excessive burden for businesses already grappling with financial challenges.
The current tipped minimum wage in Chicago stands at 60% of the full minimum wage. However, as part of the 5-year plan to phase out the tipped minimum wage in the city, the tipped minimum wage will gradually increase to:
- 68% of the full minimum wage on July 1, 2024
- 76% of the full minimum wage on July 1, 2025
- 84% of the full minimum wage on July 1, 2026
- 92% of the full minimum wage on July 1, 2027
- 100% of the full minimum wage on July 1, 2028
In addition to the ordinance itself, One Fair Wage, a national non-profit organization, has plans to provide capacity-building grants to small or BIPOC-owned businesses. These grants aim to support the transition, particularly benefiting full-service restaurants with tipped workers who may encounter unique challenges.
“Nearly one hundred years after the Pullman car porters won One Fair Wage in Chicago, the Black women who are the majority of tipped workers in Chicago are finally about to win a full, livable wage plus tips,” said Saru Jayaraman, President of One Fair Wage.
“This incredible victory is not only going to improve the lives of hundreds of thousands of Chicagoans and help small businesses by bringing workers back into the restaurant industry; it’s also going to kick off a series of wins for low-wage service workers in cities and states across the country that will raise wages for millions nationwide.”
WBBM-TV Chicago contributed to this report.