‘A new day in Chicago’: Wages rise for tipped restaurant workers

CHICAGO — Wages went up Monday for tipped Chicago restaurant workers.

The increase from $9.48 an hour to $11.02 per hour is part of a five-year plan passed by the City Council. The goal is to reach parity with the city’s standard minimum wage.

The Illinois Restaurant Association and many Chicago restaurants have been vocal in their opposition to the wage increase. They argue that it will do more harm than good and that thousands could lose their jobs.

But in many Chicago neighborhoods, like Avondale, some restaurant owners who spoke with WGN News say they are embracing the new ordinance, though they concede that it could force them to raise prices.

Peter Shen, owner of Poke Okie , a Hawaiian-themed restaurant in the 2900 block of N. Milwaukee, hopes he doesn’t have to raise prices.

“Even though it’s a challenge, it’s not as fearful because I feel like we’re all in it together,” Shen said.

Chicago alderperson Carols Ramirez-Rosa (35th Ward) said he saw strong support for the push to parity in his ward.

“This historic change was made as a result of a coalition of restaurant workers and restaurant owners advocating for this change collectively, together,” Ramirez-Rosa said. “Over 64 restaurants in the city of Chicago were part of our coalition pushing for this change.”

Back in October, Ramirez-Rosa and others on the council voted to pass the “One-Fair Wage” ordinance. Chicago Mayor Brandon Johnson, who championed the measure, celebrated the July 1, 2024 milestone by declaring a “new day in Chicago.”

In a written statement, Johnson added: “Over 60,000 service industry employees just got a raise and over 1.38 million workers just doubled their paid time off. We are making Chicago the most pro-worker city in the country while growing our local economy.”

Ramirez-Rosa says that when it’s been tried in other cities, such as Los Angeles and Minneapolis, better-paid workers had more money to spend, which was good for business.

“We know that a rising tide lifts all boats,” the alderman said.

Opponents point to similar wage increases in Washington D.C., however. The Illinois Restaurant Association believes the wage hikes had a negative effect.

“Since May 2023 when Washington, D.C. became the first jurisdiction in the nation in more than 20 years to begin eliminating the tip credit, more than 3,700 full-service restaurant jobs have been lost,” said Sam Toia, president of the Illinois Restaurant Association.

For the latest news, weather, sports, and streaming video, head to WGN-TV.