The Chicago City Council is set to vote on an ordinance that would restore the subminimum wage for tipped workers, potentially setting up a veto showdown with Mayor Brandon Johnson. The legislation aims to pause the One Fair Wage policy, passed in 2023 and scheduled for full implementation by July 2028.
Key Takeaways
Chicago's City Council is set to vote on an ordinance that would restore the subminimum wage for tipped workers, potentially leading to a veto showdown with Mayor Brandon Johnson. The One Fair Wage policy, passed in 2023, aims to eliminate the tip credit and ensure servers are paid the full minimum wage by July 2028.
- City Council poised to vote on restoring subminimum wage for tipped workers
- Policy could lead to a veto showdown between Mayor Johnson and council opponents
- One Fair Wage policy aims to phase out tip credit by July 2028
- Restaurant owners argue the policy has hurt business, while supporters say it benefits workers
The policy requires servers to be paid the city’s full minimum wage on top of tips. Opponents of the policy argue that it has hurt the restaurant industry and its workers, with some restaurateurs claiming they have had to cut hours or close down due to increased labor costs. According to the Chicago Tribune, Northwest Side Ald. Samantha Nugent said the policy has been detrimental in her community.
Supporters of One Fair Wage argue that it benefits Black and Latino workers who have suffered from tipping culture being a driver of income inequality. Mayor Johnson, who often mentions that the adoption of tipping in the U.S. is rooted in slavery, reaffirmed his support for the policy last summer.
The impending clash would be one of many between Johnson and an antagonistic council bloc. He has issued two mayoral vetoes already in his first term, after City Hall had gone since 2006 without one. Johnson spokesperson Griffin Krueger did not directly answer questions about a potential veto but stood firmly behind the ordinance.
The editorial board of the Chicago Tribune argued that aldermen should vote to give restaurants a fighting chance to soldier on, maintain the jobs they provide now, and create more such jobs in the future. They also said that the city's finances are a shambles and that Johnson is still smarting from losing the budget battle last year.
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