(The Center Square) – Activists are calling for Chicago’s tipped worker raises to be expanded across Illinois, but a state senator from Chicago says all voices need to be at the table.
One Fair Wage organizers held an event in Chicago Monday, marking a year since the city began the five-year process of eliminating the sub-minimum wage for tipped workers.
One Fair Wage National Policy Director Richard Rodriguez said tipped workers have seen a 42% increase in income over the last four years.
“Chicago is showing that fair wages and strong businesses go hand in hand,” Rodriguez said.
Rodriguez thanked more than a dozen labor unions and other coalition partners that fought for the elimination of the tipped wage.
Supporters noted that tipped workers in the city will see their hourly wage rise from $11.02 to $12.62 on July 1.
Mayor Brandon Johnson joined several elected officials from Chicago and Cook County at Monday’s event on the city’s West Side.
State Sen. Lakesia Collins, D-Chicago, did not attend, although several One Fair Wage press releases announcing the event included her name.
When asked about the increased tipped wage, Collins said she has heard some mixed reviews from tipped workers.
“You know a lot of them are going without health insurance and they’re struggling to make ends meet, and then I hear some who say they liked things the old way, but the reality is that wages are just too low,” Collins told The Center Square.
Collins represents active business districts in Chicago’s West Loop area.
“I think what the city has done and the work they’ve done in partnering with the businesses is a great attempt to promote more workers into the industry,” Collins said.
Citing data from the U.S. Bureau of Labor Statistics, Illinois Restaurant Association President Sam Toia said Chicago lost 5,200 jobs from the beginning of the tipped credit elimination last July 1 through Dec. 31, 2024.
“We also know that the beginning of the elimination of tipped credit here in the city of Chicago has led to higher menu prices, reduced hours for waiters and waitresses and bartenders, and business closures,” Toia told The Center Square.
Toia said over a hundred restaurants have closed in Chicago since 2024, adding that empty storefronts can be seen up and down Chicago’s commercial streets.
“So the more and more you mandate these independent restaurants, the more closures you’re gonna see. As I mentioned earlier, over a hundred have closed in the city of Chicago since 2024,” Toia said.
Toia said Washington, D.C. officials “put a pause” on raising the tipped wage and Mayor Muriel Bowser called for the law’s repeal after the city experienced restaurant closures and job losses. Toia said he did not understand why “California activists” keep pushing tipped wage elimination in Illinois.
One Fair Wage offered statistics from Johnson’s administration, which said Chicago has issued 856 new retail food establishment licenses. The group also said business license cancellations are down by 50%.
When asked about a move to expand the measure statewide, Collins said all voices need to be at the table.
“I am listening not only to the workers but I’m listening to the business owners. I’m listening to the small business owners as well, and then I’m listening to the community. I think when we’re making decisions like this at the state level, we have to look at the whole picture,” Collins explained.
The senator said some small business owners have said they can’t afford the higher wages.
Collins noted there have been attempts to increase wages for tipped workers across Illinois.
“There are different issues community by community statewide. I’ve heard from different business owners and different workers who have come down and talked about this issue,” Collins said. “It’s going to take a longer conversation at the state level, to be honest with you. I know that a lot of my colleagues, they all feel the same.”
State Rep. Lisa Hernandez, D-Cicero, filed House Bill 2982 to eliminate the sub-minimum wage, but the measure was not called for a floor vote before the end of session May 31.
Collins said legislators raised the minimum wage at the state level, but she said there are too many mixed reviews regarding tipped workers to pinpoint the direction lawmakers should take.
“The conversations are still happening,” Collins said. “We know that businesses in our communities are the economic drivers.”
