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Chicago Council Keeps Tipped Wage Phaseout After Veto Override Fails

The vote preserves cost-of-living raises for servers under Chicago’s 2023 One Fair Wage law.

Overview

  • The City Council, which voted 30–19 on Wednesday, fell four votes short of the 34 needed to override Mayor Brandon Johnson’s veto of a freeze on tipped wage hikes.
  • Under One Fair Wage, tipped workers’ base pay will rise each year until it matches the city’s $16.60 minimum by July 1, 2028, and employers must cover any shortfall if tips do not reach that floor.
  • Tipped workers now earn about 76% of the minimum, or roughly $12.62 an hour, and their next adjustment will track the annual cost-of-living increase set each July 1.
  • Johnson and labor groups say the policy offers steadier pay for workers who are largely women and people of color, while restaurant owners and the Illinois Restaurant Association warn of higher prices, reduced hours, and job cuts.
  • A separate proposal on the council agenda would raise taxi fares about 20% with new rush-hour and overnight fees after clearing a committee earlier in the week.