The Windy City has abolished the sub-minimum wage for tipped workers.
Now for the rest of the country:
Chicago on Friday became the largest American city to independently require that tipped employees make a full minimum wage, following a relatively easy City Council vote that delivered one of Mayor Brandon Johnson’s biggest political wins for his progressive agenda.
In a 36-10 vote, aldermen approved the measure that advocates said was direly needed for the lowest-paid service workers and that opponents countered would backfire, causing some employees in the service industry to be paid less and lead to higher menu prices and staff cuts. The ordinance becomes law immediately but the full impact won’t take effect for five years.
Starting next July, the gap between tipped and minimum wages will shrink by 8% until parity is reached by July 1, 2028.
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Los Angeles, which has a larger population than Chicago, already bans a subminimum wage for tipped workers but that’s under a California state law that requires employers to pay those employees the full minimum wage. Besides California, Alaska, Minnesota, Montana, Nevada, Oregon and Washington also have abolished the lower tipped wage, according to the U.S. Department of Labor.
It looks like the fight against this particular abusive practice is picking up steam.
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