Chicago passes tipped minimum wage compromise
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Illustration: Maura Losch/Axios
After months of back-and-forth, alders voted Wednesday to slow scheduled increases in the tipped minimum wage.
Why it matters: The fight over tipped wages has become one of the city's most contentious debates, pitting worker advocates against restaurant owners worried about rising labor costs.
Catch up quick: For decades, the service industry has operated under a two-tiered system in which tipped workers get paid a lower subminimum base wage before tips.
- In 2023, the City Council voted to gradually raise the subminimum wage (currently $12.62) to parity with the regular minimum wage ($16.60) by 2028.
- But in response to concerns from restaurant owners, alders voted this spring to freeze the increases. That vote was swiftly vetoed by Mayor Brandon Johnson.
- Last week, a committee advanced a compromise from Ald. Walter "Red" Burnett that would require larger restaurants to reach full wage parity by 2030 and smaller restaurants by 2033.
Between the lines: Burnett, whose ward includes restaurant-heavy Fulton Market, emerged as a key broker between restaurant owners and labor supporters.
What they're saying: Advocates for both sides shared muted approval.
- Illinois Restaurant Association CEO Sam Toia said it's "not perfect" but "gives the industry more time to adjust and better manage increased labor costs. "
- One Fair Wage president Saru Jayaraman said that it proves an eventual "living wage for all is inevitable."
Yes, but the measure's original sponsor, Ald. Jessie Fuentes, urged her colleagues, "Let this be the last time we litigate this issue."

In other council news, alders voted to:
- Confirm David Glockner as the city's next inspector general.
- Restrict Chicago police officers from associating with extremist groups, including the Proud Boys and Oath Keepers.
- Adopt the Jesse L. Jackson Jr. Fair Access to Democracy Ordinance, to protect poll and other government workers.
