Chicago’s effort to eliminate the tipped minimum wage remains on track after a closely watched City Council vote, with Mayor Brandon Johnson defending the policy by linking it to the legacy of slavery and “broader economic inequality.”
The Chicago City Council voted 30–19 on Wednesday in an attempt to override Johnson’s veto of a measure that would have slowed or altered the phaseout. The effort fell four votes short, allowing the mayor’s decision to stand and marking his third successful veto since taking office.
Wage Policy Moves Forward
Under the current ordinance, tipped workers—such as restaurant servers—will see their base wages gradually rise until they match the city’s standard minimum wage, which is scheduled to reach $16.60 per hour by July 2028. The plan includes annual increases of roughly 8% each summer until parity is achieved.
Supporters argue the policy provides more stable income for workers who rely heavily on tips, while critics say it could increase costs for restaurants and potentially reduce jobs or hours.
Johnson’s Remarks Spark Debate
While responding to questions about a separate initiative, Johnson defended the wage changes by describing the tipped wage system as historically rooted in “inequities” that trace back to the antebellum era. He argued that eliminating the lower base wage is part of a broader effort to address longstanding disparities in the labor market. Johnson has previously framed the tipped wage system as a “vestige of slavery” despite service industry workers often taking their jobs knowing that they have the potential to earn more in tips than they would making minimum wage.
If they begin making minimum wage, industry experts also warn of a potential decrease in tips from customers.
Reparations Initiative and Broader Agenda
The mayor’s comments came as he addressed questions about a city-backed reparations initiative. In 2024, Johnson launched a task force to “examine historical harms experienced by black residents” and “explore potential policy responses.”
Johnson has framed both the wage policy and the reparations initiative as part of a broader agenda focused on economic equity and labor rights while critics caution against them as destructive and divisive.
Opposition and Economic Concerns
Business groups and policymakers remain skeptical of the tipped wage phaseout, arguing that raising base wages would place additional financial pressure on restaurants, particularly small businesses already operating on thin margins.
Organizations such as the Employment Policies Institute have cited early economic indicators that point to the policy negatively affecting the restaurant industry. They contend that higher labor costs could lead to reduced hiring, increased menu prices, or changes to tipping practices.
Ongoing Debate
The outcome of the City Council vote ensures that Chicago will continue implementing one of the more ambitious tipped wage reforms in the country.
As the phased increases continue over the next several years, both supporters and critics will be watching closely to see how the policy affects workers, businesses, and the city’s broader economy.
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