Ald. Jessie Fuentes (26th Ward) is sponsoring a Chicago ordinance that would eliminate the subminimum wage for tipped workers. Why?
- Currently, tipped workers such as restaurant servers, bartenders, bussers and runners make a subminimum wage of $9.48 per hour.
- Chicago’s current minimum wage for all other workers is $15.80 per hour for companies with at least 21 employees. (It’s $15 for companies with 20 employees or less.)
- When an employee’s hourly wage plus tips doesn’t add up to $15.80, employers are currently required by law to make up the difference.
- The ordinance now being considered would phase out the city’s lower wage for tipped workers over a two-year period, and it has the backing of Mayor Brandon Johnson.
Opponents fear the move could lead to reduced hours for workers, as well as layoffs, restaurant automation and even closings.
“Let’s talk about the places where ordinance like this have passed. … There’s California, Oregon, Washington and…
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