Chicago City Council to vote on bid to halt increase in subminimum wage for tipped workers
A bid to halt the phase-out of Chicago's subminimum wage for tipped workers is expected to get a vote by the City Council on Wednesday, but Mayor Brandon Johnson is standing behind one of the first signature wins of his progressive agenda.
In 2023, the City Council approved the "One Fair Wage Ordinance," which would gradually eliminate the subminimum wage for tipped workers, raising it to the full minimum wage by July 1, 2028.
Before the ordinance passed, businesses were allowed to pay tipped workers 60% of the standard minimum wage, but if tipped workers' wages and tips did not add up to the full minimum wage, their employer had to make up the difference.
After two pay increases under the "One Fair Wage Ordinance," tipped workers are currently paid 76% of the full minimum wage, or $12.62 an hour. On July 1, that will go up to 84% of the full minimum wage, and by July 1, 2028, it will go up to the full minimum wage.
A group of Johnson's opponents last week filed a notice with the City Clerk that they intend to force floor vote on an attempt to pause that ordinance, and keep the subminimum wage for tipped workers at 76% of the full minimum wage.
Critics of the "One Fair Wage Ordinance" have argued it has forced restaurants to reduce staffing, raise prices, or close altogether.
Bronzeville Winery owner Eric Williams said, if the subminimum wage for tipped workers continues to go up, he might be forced to go out of business.
Williams said he understands the intent of the ordinance, but believes it's actually hurt tipped workers by forcing restaurants to cut back on staffing and/or increase menu prices, driving away customers.
"The more you increase your prices, the less people come," Williams said. "So, because of that, we've had to cut service, because we have less customers coming. So now we go from five servers to having three. So because of the $3 increase per hour, they're losing $30 or $40 per hour in what they were making tips."
Supporters of the bid to freeze the increase in the subminimum wage for tipped workers would need 26 votes to pass it, but 34 votes to survive a likely veto from Mayor Brandon Johnson, who has defended the "One Fair Wage Ordinance."
In an interview on WBEZ-FM's "Ask the Mayor" program this week, Johnson vowed to continue fighting to keep the phaseout in place.
"At a time in which affordability is top of mind for the entire country, Democrats have to pay attention to what the voters in the city of Chicago are calling for, and quite frankly, what voters across America are expecting from leadership," Johnson said. "It is becoming increasingly more difficult to afford to raise a family in this country. Democrats rolling back the wages of Black and Brown women, again, that is not only tone-deaf, but it's irresponsible."
In other business on Wednesday, the City Council also is expected to vote on a proposal to strengthen penalties for animal cruelty offenses. The ordinance would add new requirements for owners to provide pets with breed-appropriate food, ventilated shelter large enough for animals to move about freely, and reasonable medical care.
It also would prohibit pet owners from leaving their animals staked out outside for more than two hours at a time, or for more than 30 minutes overnight when temperatures drop below 45° or if there is a weather advisory in place, unless there is an appropriate shelter outside.
Fines for animal cruelty would increase from $1,000 to $5,000.
Alders also are expected to give final approval to a $27 million settlement with the family of a mother of six killed in a crash during a high-speed police chase in 2017.
The settlement would go to the family of Stacy Vaughn-Harrell, who was driving with her daughter, Kimberlyn Myers, near 59th and LaSalle streets in Englewood on June 24, 2017, when their car was hit by a white Kia Sorrento fleeing from police.
Attorneys for the family have said officers involved in the chase violated Chicago Police Department rules regarding vehicle pursuits by failing to activate their lights or sirens, tried to cover up what happened by turning off or failing to activate their body cameras, and did not try to help Myers or Vaughn-Harrell after the crash.
If the settlement is approved by the full City Council next week, the deal would call for taxpayers to cover $20 million of the settlement, with the city's insurance company paying $7 million.
And Ald. Ruth Cruz (30th) is leading the charge for the City Council to approve a resolution urging Congress to pass legislation known as "Medicare for All" to provide health care coverage for all Americans with no co-pays, deductibles, or other out-of-pocket costs.
"No one should be left at home waiting to die due to our dysfunctional healthcare system. We can and must do better," Cruz said.
Doctors who support "Medicare for All" spoke about burnout due to low morale at a press conference shortly before Wednesday's City Council meeting.
"Physicians are frustrated by their inability to offer their patients the most appropriate care. They are stymied by required prior authorizations that issue inappropriate denials of care," said Dr. Claudia Fegan, with Physicians for a National Health Program.