The Chicago City Council voted on March 18 to halt future increases in the subminimum wage for tipped workers, but Mayor Brandon Johnson said he intends to veto the measure. The ordinance passed by a 30-18 vote would pause the current tipped wage rate at $12.62 and eliminate further scheduled increases through 2028.
The issue is significant as it affects thousands of service industry workers in Chicago who rely on tips and have seen gradual increases in their base pay since the city passed the One Fair Wage ordinance in 2023. Supporters say these hikes are necessary for worker stability, while opponents argue they strain restaurant businesses.
Chicago’s minimum wage for most workers is $16.60 an hour, but tipped employees can be paid less if tips make up the difference. The One Fair Wage law aimed to phase out this structure over five years, with incremental raises for tipped workers until their base pay matches the citywide minimum by 2028. Backers of eliminating the tipped wage say it supports workers whose income from tips can be unpredictable and subject to factors beyond their control.
Mayor Johnson called a potential freeze “irresponsible” and said, “Now more than ever, we must ensure that we are doing everything in our power to protect working people. The self-proclaimed Democrats who stripped away resources and wages from hardworking Chicagoans is shameful.” Overriding his promised veto would require four more council votes than those cast in favor of the ordinance.
The Illinois Restaurant Association criticized Johnson’s planned veto, stating, “A veto of the ordinance would further threaten jobs, reduce take-home pay for workers, raise prices for customers, and accelerate restaurant closures in neighborhoods across the city.” According to a recent survey by the association of about 200 full-service restaurants, most reported raising menu prices and cutting employee hours after recent minimum wage hikes.
Some restaurant owners expressed concern that continued increases could force them out of business. Eric Williams, owner of Bronzeville Winery, said at a press conference that higher labor costs are unsustainable: “It’s not a sustainable model, and I would hate to see my servers have to lose their job and go find other work that wouldn’t be in our neighborhood.” Gina Barge of Wax Vinyl Bar and Ramen Shop described running her business as “death by a thousand cuts” due to rising costs.
Supporters of phasing out the tipped wage acknowledged challenges facing restaurants but pointed to other pressures such as food prices and rent. Raeghn Draper, bartender and director of CHAAD (Chicago Hospitality Accountability and Advocacy Database Project), said eliminating the tipped wage provides needed stability: “I have experienced firsthand the instability, uncertainty, racism and sexual harassment that comes with the tipped wage,” Draper said Wednesday. “This proposal to freeze our wages will not only hurt me… it would hurt thousands of workers in this city.”
Johnson’s promised veto marks his third since taking office; previous vetoes included measures related to hemp product sales and police curfews.
