Now paid 60% of Chicago's minimum wage, tipped workers would qualify for full minimum wage by 2028.
Ald. Carlos Ramirez Rosa, 35th, at a news conference about a restaurant worker wage proposal before the City Council meeting at City Hall on July 19, 2023.
“This mayor is prioritizing Black women and Latinas that are the head of households, who oftentimes struggle to make ends meet, who often struggle in the restaurant industry to make enough money and tips to even reach the minimum wage,” the mayor’s floor leader, Ald. Carlos Ramirez-Rosa, 35th, said Monday. “And so, it was important to make sure that the mayor delivered on this important campaign promise.
Los Angeles already bans a subminimum wage for tipped workers but that’s under a California state requirement that employers pay those employees the full minimum wage. Besides California, Alaska, Minnesota, Montana, Nevada, Oregon and Washington also have abolished the tipped wage,Chicago’s minimum wage for tipped workers is currently 60% of the city’s $15.80 per hour minimum wage, or $9.48 per hour. If tipped workers do not receive enough in gratuities to reach the $15.
Toia’s group late Friday floated its counterproposal, which would have brought the tipped wage up to $20.54 but only for restaurants earning over $3 million in annual revenue. It failed to gain traction. “Today’s announcement marks a seismic shift in the movement to end the subminimum wage for tipped workers nationwide,” Jayaraman wrote in a statement. “We aren’t just celebrating a policy change, we are witnessing a surging momentum for worker power. This breakthrough is an example of what is possible when workers, advocates, and elected leaders with the political courage stand together.”
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