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Chicago City Council Votes to Freeze Tipped Wage at 76%, Setting Up Likely Mayoral Veto

The move would pause the city’s 2023 phaseout of the tip credit.

Overview

  • The council approved the freeze 30–18, a margin that falls short of the 34 votes needed to override a veto.
  • The measure holds base pay for tipped workers at 76% of the city minimum, or $12.62 an hour, instead of rising to 84% on July 1 under the existing schedule.
  • Mayor Brandon Johnson has defended the One Fair Wage ordinance and is expected to veto any attempt to halt its phaseout.
  • Restaurant owners and trade groups say higher mandated wages have driven price increases, staffing cuts, and closures, while worker advocates argue a freeze would strip expected raises during a period of high living costs.
  • The mayor’s office countered claims of a restaurant exodus, noting more than 1,500 new retail food establishment licenses since mid-2024 and license renewal rates above 80% in 2024 and 2025.