Proposal to hike minimum wage for tipped workers clears legislative roadblock

CHICAGO (CBS) -- The push to eliminate a lower minimum wage for tipped workers in Chicago moved a step closer to reality on Wednesday.

This measure was first introduced in July. It would give restaurants two years to have all tipped workers increased to Chicago's minimum wage, which is $15.80 an hour, plus any tips they earn.

Those workers currently make a minimum of $9 dollars an hour plus tips, but employers are required to make up the difference if the combined amount of hourly pay and tips does not equal the full minimum wage.

When the proposal was introduced to the City Council in July, it was shuttled to the Rules Committee, where legislation is often left to languish without a vote, but on Wednesday the committee sent the ordinance to the Workforce Development Committee for consideration.

That could set up a committee vote in October, with possible passage by the full City Council during the annual city budget process. Mayor Brandon Johnson has backed the proposal.

The plan would be to phase out the sub-minimum wage for tipped workers over two years once the ordinance is passed.

Supporters of the measure say restaurant workers aren't making enough. Particularly, in an industry where the workforce is overwhelmingly made up of young women of color.

On the other hand, opponents and some small businesses owners say the measure would put many restaurants out of business.

"It's going to impact them dramatically as to their expansion, the amount of employees they can hire. It may reduce the number of people working in a restaurant because it's going to be a financial strain ultimately on the business," said Nick Thanas, owner of Lou Mitchell's diner.