Chicago’s City Council Votes to Freeze Tipped Worker Wage Increases

On Wednesday, the Chicago City Council voted to freeze the city’s “One Fair Wage” ordinance. This decision halts scheduled wage increases for tipped workers, such as waiters, who currently earn less than the city’s minimum wage. The council’s move stops the increases for a minimum of two years.

The vote was overwhelmingly in favor of the freeze, with only one alderman opposing. This outcome hints at future efforts by the restaurant industry to completely eliminate these wage raises. The decision is a setback for Mayor Brandon Johnson, who had championed the measure as part of his working-class agenda. Mayor Johnson, although disappointed, described the decision as a compromise and chose not to veto it. He emphasized his ongoing commitment to dialogue and compromise, despite being “not completely satisfied” with the result.

Previously, in March, aldermen had voted to indefinitely halt the “One Fair Wage” ordinance, which Mayor Johnson vetoed, arguing that the subminimum wage has historical links to slavery. The latest vote, however, has enough support to override another veto. The compromise delays the annual pay increases for tipped workers for two years at large restaurants and four years at smaller ones. Both supporters of the original wage structure and opponents have grudgingly accepted the compromise.

Alderman Walter “Red” Burnett, who was instrumental in pushing for the freeze, argued for the necessity of the measure to prevent restaurant closures. He stated that the compromise aims to balance the needs of both workers and restaurateurs. Alderman Gilbert Villegas echoed Burnett’s concerns about rising costs and high taxes affecting restaurants, suggesting that it was prudent to pause and reassess the economic situation.

Alderman Jessie Fuentes, who supported the wage increase, expressed her disappointment yet voted for the freeze. She urged her colleagues to ensure that this would be the last delay in wage increases. Mayor Brandon Johnson’s floor leader, Alderman Jason Ervin, criticized the measure as an economic betrayal that would predominantly harm Black residents in Chicago’s South and West sides.

The ordinance that passed revised the timeline set by the original “One Fair Wage” legislation. Wage increases originally scheduled for July 1 and the full elimination of the subminimum wage by 2028 will now be postponed until 2028 for larger restaurants and 2030 for smaller ones, with subsequent gradual implementation.

During recent negotiations, restaurant lobbyists proposed keeping the subminimum wage but ensuring tipped workers receive 124% of the city’s minimum wage when combining tips and wages. Restaurants are tasked with making up any shortfall when tips do not meet the minimum wage, a system critics argue fails to protect workers effectively.

“We do not think tipped credit should be eliminated,” said Sam Toia, President of the Illinois Restaurant Association.

Wednesday’s meeting began with a public apology from GOP gubernatorial candidate Darren Bailey, who had previously labeled Chicago a “hellhole.” He expressed regret and clarified his dissatisfaction with political leaders rather than with Chicago itself.

The City Council also passed several measures, including an ordinance honoring Rev. Jesse Jackson with initiatives focused on voting rights protection. They approved a settlement with disability advocacy group Access Living and a tax break for the “1901 Project” development near the United Center.