(The Center Square) – Restaurant workers rallied at the State Capitol Tuesday demanding an end to the tipped wage in Illinois.
Critics of such a plan argue that under current Illinois law, tipped workers already are required to earn the state minimum wage of $15 and ending the tipped wage would lead to lost jobs and diminish earning potential for tipper workers.
The group One Fair Wage and the Rainbow Push Coalition joined forces in Springfield to call on lawmakers to eliminate the state tip credit. They argue that Black tipped workers are overrepresented in the most casual, lowest-paid segments of the restaurant industry where tips are meager.
Legislation has been introduced that would eliminate the state tip credit by 2027.
Jacqueline Jackson, a member of the Rainbow Push Coalition, says the subminimum wage continues to lock tens of thousands of Black workers into poverty.
“That’s why One Fair Wage is pushing to raise the minimum wage to $15 an hour,” said Jackson. ‘This is a legacy of slavery.”
In 2023, the Chicago City Council voted to eliminate the tipped wage, raising the minimum wage for tipped workers from $9 an hour to $15.80 before tips. The plan will be phased in over five years.
Sam Toia, president of the Illinois Restaurant Association, said there is no need to change the current system.
“We think this is a solution to a problem that doesn’t exist,” said Toia. “Under current law, every tipped employee must earn at least the state minimum wage. That means for some reason, an employee makes less than the minimum wage, the employer must make up the difference, and the notion that tipped employees make less than the minimum wage is simply not true.”
Toia points to a survey his group conducted with the National Restaurant Association that showed 86% of tipped restaurant servers believe they will earn less if the tipped credit is eliminated, and 87% of tipped employees believe the current system works and does not need to be changed.
Protect Illinois Hospitality, a coalition of tipped workers, chambers of commerce, service operators and local small businesses, has voiced support for keeping the tip credit available for Illinois businesses.
“Eliminating the tip credit would fundamentally alter the earning potential of tipped workers in restaurants, bars, breweries, hotels, and other businesses. It would also mean higher prices for customers, job loss for workers, and have a devastating impact on local business owners,” the group said in a statement.
