Chicago Takes a Stand: No More Subminimum Wage for Tipped Workers

Chicago has become the largest city in the United States to independently require that tipped employees receive a full minimum wage, following a City Council vote. The measure aims to address income inequality and uplift the lowest-paid service workers. Starting next July, the gap between tipped and minimum wages will shrink from 60% to 40%, gradually decreasing until parity is reached by July 2028. While advocates celebrate the move, opponents argue that it could lead to lower wages, higher menu prices, and staff cuts in the service industry.