Tip Credit Saved in Chicago! City Council Approves Mayor Lightfoot's Budget, $15 Min. Wage Ordinance

Earlier today, the Chicago City Council voted 39-11 in favor of Mayor Lightfoot’s 2020 budget proposal – including the $15 minimum wage ordinance that maintains the tip credit at the 60/40 ratio allowed by state law. Click here to read the ordinance (which begins on page 31). 

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

The IRA commends Mayor Lightfoot and the City Council for listening to hundreds of local restaurant operators, servers, and bartenders that have shared their support of maintaining the current tip credit model. 

We thank all IRA members that have been actively engaged on this crucial issue for the past several months. Without your help, the City Council would have passed a drastic minimum wage ordinance that would have eliminated tip credit entirely.

Read more from Chicago Tribune, Eater Chicago, and Nation's Restaurant News.  Click here to watch comments from Mayor Lightfoot, IRA President & CEO Sam Toia, and other stakeholders after today's vote. Sam's comments begin at the 15:20 mark. Contact Matt Quinn with any questions.