IRA, Restaurateurs, Servers Rally to Save Tip Credit; Mayor Lightfoot Introduces New Ordinance

Earlier this week, more than 40 restaurant operators, servers, and bartenders attended an IRA press conference at Norman's Bistro to share their clear opposition to the ordinance that would eliminate the tip credit by 2023 and force a 144% labor cost increase on employers with tipped employees. Thank you again to everyone that was able to join us or send your team members. 

Yesterday, Mayor Lightfoot introduced a version of a $15 minimum wage ordinance within her Fiscal Year 2020 budget proposal that maintains the tip credit at the 60/40 ratio permitted by state law. Click here to read the ordinance (which begins on page 31).  

If passed, the tipped wage would increase to $8.40 on July 1, 2020, when the city of Chicago’s minimum wage would go to $14.00. Tipped wage would increase to $9.00 on July 1, 2021, when the city of Chicago's minimum wage would go to $15.00. 

Read more from Chicago Tribune, Restaurant Business, and Crain's Chicago. 

There are two scheduled City Council meetings in November. The City Council is expected to vote on Mayor Lightfoot's Fiscal Year 2020 budget package - including her $15 minimum wage ordinance that maintains tip credit - by the end of November. 

The IRA will continue to work to protect the industry on this important issue in the coming weeks. Please contact Matt Quinn with any questions.