Share and Follow
In the bustling corridors of Chicago City Hall, a heated debate is brewing over the future of tipped wages. This issue promises to spark a significant discussion, as some City Council members push to put a freeze on these wages.
The ordinance in question, which was put into place two years ago, aims to gradually increase the earnings of tipped workers. However, this initiative has not been without its challenges. Owners of restaurants and small businesses across Chicago argue that the incremental wage hikes have placed an undue burden on their operations.
ABC7 Chicago is now streaming 24/7. Click here to watch
Leading the charge to halt this wage increase is a coalition of aldermen and restaurant leaders, who are rallying support with the backing of The Illinois Restaurant Association. This group contends that the current system is squeezing their businesses too tightly.
Sam Toia, the president and CEO of The Illinois Restaurant Association, has been vocal about the implications of the existing wage structure. He emphasizes that if tipped workers do not reach the minimum wage through their base pay combined with tips, employers are obligated to bridge the gap. “Everyone makes at least the minimum wage,” Toia assures, highlighting the safety net provided by current legislation.
“If tip workers don’t make the minimum wage through a combination of their base wage and their tips, their employer is required to make up the difference. Everyone makes at least the minimum wage,” Sam Toia, Illinois Restaurant Association president and CEO.
The current One Fair Wage ordinance phases out sub-minimum wages over five years, and eventually, tipped workers will earn the full minimum wage, plus their tips.
Right now, the hourly wage for tipped workers is $12.62/hour.
Chicago’s minimum wage is $16.60 for employers with four or more employees.
The proposal before City Council, however, would freeze the city’s tip credit, providing needed stability. Proponents say for restaurants like Bronzeville Winery, facing growing costs and economic uncertainty.
The owner, Eric Williams, said he cannot stay in business if wages continue to increase and City Council doesn’t step in.
“Last year, to be very transparent., we lost $60,000,” Williams said. “Of that $60,000, $40,000 of that was because of the One Fair Wage and the increase in the minimum wage for tip workers, I put in it’s a lot of my own money just to keep the place going,” Eric Williams, owner of Bronzeville Winery, said.
“I am really concerned, because I make significantly more from tips than I would from a flat hourly wage, but because restaurants are facing higher base costs, they have had to cut hours,” Shanell Oliver, a server at Bronzeville Winery. “I’m working fewer shifts. I’m taking home much less money, which is putting a real strain on my family.”
An opposing group of restaurant workers impacted by the proposed wage freeze also rallied at City Hall Wednesday morning, saying this vote could take away raises they were counting on at a time when rent, groceries, childcare and transportation costs continue to rise.
“I find it disgusting that some in City Council would think that it’s appropriate to take wages from workers during such an economically and politically volatile time, not just in our city, but in our country,” Raegn Draper, executive director of CHAAD Project.
“Sub minimum wage is not enough for anyone to live on and to try to freeze it or stop it at this point is inhumane, like rent is ridiculous,” bartender Cheryl Taylor said. “Rent has gone up over 40% in the last two years, and if you freeze our wages, how do you expect us to live? Some of us actually go food pantries, to make it week.”
If the effort were to pass, Mayor Brandon Johnson is expected to veto it.
Copyright © 2026 WLS-TV. All Rights Reserved.