Chicago Mayor’s Veto Stands: Minimum Wage Increase for Tipped Workers Moves Forward

In a pivotal decision on Wednesday, the Chicago City Council was unable to overturn Mayor Brandon Johnson’s veto concerning a proposed pause on the scheduled increase in minimum wage for tipped workers. The council’s vote, which concluded at 30-19, fell short of the 34 votes necessary to override the mayor’s decision.

The ordinance, known as One Fair Wage, had originally been passed in 2023, aiming to ensure more equitable pay for restaurant workers by gradually eliminating the subminimum wage. Mayor Johnson, standing firm on his veto, hailed the outcome as a triumph for laborers striving for fair compensation.

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However, not everyone is celebrating this development. Restaurant owners have expressed concerns, arguing that the rising wages are putting a strain on their financial stability, potentially affecting their business operations and profitability.

Despite the pushback from the business sector, Mayor Johnson’s stance reflects a broader commitment to economic justice for workers in the service industry, emphasizing the importance of fair wages as a fundamental right.

Mayor Brandon Johnson called it a victory for working people: an effort to eliminate subminimum wages for restaurant workers.

The Illinois Restaurant Association said in a statement, “While we are disappointed that the mayor vetoed the tip credit freeze, we are hopeful that the 60 percent of the Chicago City Council who stood up for our operators and servers will help us find a path forward that will protect restaurants and save our jobs. We urge the mayor to listen to the 30 aldermen who heard from hundreds of servers and operators from across the city that something needs to be done to support these restaurants. Their margins are slim and the risks are high for these businesses and inaction will only lead to more closures. Neighborhoods will slowly lose establishments that are integral to their communities, and the places that make this city special will eventually disappear. We seek a good faith effort from this administration to find a viable solution. Although there wasn’t enough support to override the mayor’s veto, the majority of the City Council recognized the urgent need for immediate action. We hope the mayor’s office acknowledges this widespread support, recognizes the significant concerns with the current plan, and commits to finding a solution that genuinely supports our restaurant workers, small businesses, and all 77 of the communities they serve.”

“We want to make sure that we’re supporting these small businesses because there is an opportunity to get to a compromise. We need the administration to stop talking about standing firm and actually get to the table so that we can land this negotiation,” 36th Ward Ald. Gilbert Villegas said.

Villegas said there will be a round two in his effort to freeze Johnson’s “One Fair Wage Ordinance.”

The measure gives tipped workers a bump in pay over a period of five years.

Villegas and the restaurant industry said 20% of Chicago’s neighborhood restaurants have gone out of businesses since the ordinance passed three years ago.

“I’m worried about our small independent restaurants and making sure we don’t see more empty storefronts throughout our great city,” said Sam Toia, with the Illinois Restaurant Association.

But, mayoral supporters say the ordinance has not stopped some new restaurants from opening. Northwest Side Alderman Jessie Fuentes led the way to successfully uphold Johnson’s veto of the freeze.

“It is not a moment to take away raises for people, raises for people when everything around them is more expensive and when people are struggling. Now than ever, we are watching people become homeless,” 26th Ward Alderman Fuentes said.

The mayor says he refuses to back down on his commitment to working people. He blames the struggles of small restaurant owners on Trump administration tariffs, not on his progressive policies.

“We’ve seen a well-organized corporate-funded effort to blame rising costs on Black and brown workers, while seeking to take a hard fought raises away from the very same workers,” Johnson said.

Johnson said it’s time to stop pitting workers against restaurant owners, but he appears to stand firm with the ordinance.

Progressive Alderwoman Jeanette Taylor says both sides must compromise.

“I want tip workers to get paid; I want them to make a living wage. But I also don’t want to see the Soulés and Virtue or small businesses close either,” Taylor said.

City Council approved a sizeable fare increase for taxis in Chicago.

The mayor is bumping up the cost of cabs by 20%, in both per mile and time charges.

It also includes new fees for rush hour and overnight rides and higher flat rates from airports to downtown.

Villegas was named chair of the Zoning Committee Wednesday, as well.