House Bill 5345 would phase out the subminimum wage for tipped workers over a two-year period.
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Chicago is taking its time to fully phase out the subminimum wage for restaurant servers, bartenders and other tipped workers.
It won’t be until 2028 when businesses will required by law to give all those employees a base pay of $15.80 per hour — the citywide minimum wage.
As Illinois lawmakers move forward in their discussions on a proposed bill that would eliminate the state’s subminimum wage for tipped workers across the state over a two-year period, similar restraint should be thrown on the table. Or at least consideration to let the legislation simmer a bit while gauging how the city fares after it implements its first 8% raise on the current $9.48 wage for Chicago’s tipped workers in July.
Watch and wait and at least take a “minute” for the sake of smaller restaurants, as we suggested last year to the City Council, which took into account the concerns of the Illinois Restaurant Association before moving forward.
If ma-and-pa establishments in a bustling foodie city like ours won’t be able to survive as subminimum wage is eased out, it could leave a much more lasting, bitter aftertaste for restaurants in sleepier parts of Illinois where fewer tourists venture.
Menu prices are sure to to jump up, making restaurant visits less appetizing should House Bill 5345 be passed into law, opponents said at a Springfield press conference last week.
State Rep. Elizabeth “Lisa” Hernandez, D-Cicero, the bill’s sponsor, said she won’t be making any hasty decisions. She vowed during a committee meeting Wednesday that the measure won’t be put to vote to the full House before negotiating amendments, according to Capitol News Illinois.
Hernandez’s proposal would require that service charges such as tips go to employees, not their bosses. It would also require that tips bring workers to the full minimum wage — currently $14 an hour in Illinois but slated to go up to $15 in 2025 — on a per shift basis, instead of weekly or biweekly.
It is understandable why Illinois’ $8.40 subminimum wage is indigestible to Hernandez, “One Fair Wage” campaign and other supporters.
Plenty of restaurant owners skirt the law by refusing to make up the difference when their employees don’t make the full minimum wage without tips. And it is the overlooked Black women and Latinas who will benefit significantly if the subminimum wage is axed, according to a 2021 report by the Center for American Progress.
No one should be robbed of the wages they deserve. A dash of patience and careful study throw into the mix would just go a long way before a subminimum wage-free Illinois is served.
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