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Chicago Panel Backs Deal to Delay Tipped-Wage Hike, Freeze Base at 76%

A full Council vote will decide whether the slowdown in the phase-out becomes law.

Overview

  • The City Council’s Workforce Development Committee advanced a compromise that would push the next tipped-wage increase to July 1, 2027 and move full parity with the city minimum to 2029.
  • Under the plan, the tipped base would be set at 76% of Chicago’s minimum wage for two years for larger restaurants and four years for smaller ones.
  • The proposal now heads to the full City Council for a vote next week.
  • Mayor Brandon Johnson opposes the delay and the Illinois Restaurant Association backs it as more workable for restaurants facing higher costs.
  • Tipped workers now earn $12.62 an hour versus a $16.60 city minimum, and employers must make up any gap when tips and base pay fall short.