Chicago City Council votes to keep subminimum wage for tipped workers, despite mayor’s opposition

CHICAGO - The Chicago City Council voted to keep a subminimum wage for tipped workers, over the objections of Mayor Brandon Johnson.

The council voted 30-18 to keep the subminimum wage, which is below the required two-thirds margin to override a veto by the mayor.

The policy, known as the "One Fair Wage Ordinance," was passed in 2023 and required businesses that employ tipped workers like servers and bartenders, to pay them a higher wage each year until they reach parity with the city’s standard minimum wage, which is $16.60 as of last year.

Johnson called the move "shameful" and suggested he would veto the measure. After a veto, the City Council can vote to override it, but that would require 34 votes. 

The mayor has also framed the issue as one related to racial justice. His office said more than half of tipped workers are women and 60% are Black or Latino, so they'd benefit from higher wages.

"At some point, y’all gotta stop picking on Black and brown women and if I got to veto something to make sure Black and brown women are protected, then veto it is," he said.

The backstory:

Prior to the law’s passage, employers were required to pay at least 60% of the city’s hourly minimum wage, but as of July 1, 2025, that percentage increased to 76%. The proposal approved on Wednesday would freeze the percentage employers need to pay at 76%.

Some business owners and organizations have argued that the phasing out of the subminimum wage hurts businesses and threatens local service jobs and worker pay.

Ald. Samantha Nugent (39th Ward) argued the increase of the subminimum wage was well intentioned, but has had a lot of "unintended consequences."

"At the end of the day, this has just driven up costs for local restaurants in every corner of the city," Nugent said. "Myself and many of my colleagues are hearing that restaurateurs just can't afford payroll, they can't afford to keep their doors open."

The Illinois Restaurant Association said in a news release that the most recent increase in the subminimum wage forced restaurants to "[scramble] to stay afloat," especially since full-service restaurant jobs remain well below pre-pandemic levels. The association said 89% of restaurants have increased their menu prices and 79% have had to cut workers’ hours over the past year.

"The continued phase-out of the tip credit will cause irreparable damage to Chicago’s world-renowned, independent, neighborhood restaurants, and to the dedicated workers they employ," said Sam Toia, President and CEO, Illinois Restaurant Association in a statement. "We need to freeze the tip credit and give our restaurants a fighting chance."

Opponents of phasing out the subminimum wage said restaurants were already required to ensure tipped workers made the equivalent of the standard minimum wage if their tips earnings fell short.

The other side:

But Johnson has argued for continuing to do away with the subminimum wage. In a social media post, his office said Johnson "will continue standing up for our tipped workers and One Fair Wage." 

His office claimed that contrary to claims from opponents of the policy, restaurants are not leaving the city and that more than 1,500 new retail food establishment licenses have been issued in Chicago since July 1, 2024. More than 80% of restaurant licenses were renewed in both 2024 and 2025, according to the mayor’s office.

Probes into sanctuary law complaints

Dig deeper:

The aldermen also approved a measure that gives the Civilian Office of Police Accountability (COPA) the power to investigate potential violations of the city law that limits how Chicago police can cooperate with federal immigration enforcement.

Supporters of the measure said this was intended just to clarify which agency would investigate when an allegation of wrongdoing arises.

"Transparency and accountability begin with government, and the COPA amendment provides the infrastructure we need to investigate Welcoming City Ordinance complaints," said Ald. Jessie Fuentes (28th Ward) in a statement.

The change comes after the Trump administration’s stepped-up immigration raids and arrests last year. Some aldermen expressed concerns that members of the Chicago Police Department have done too much to facilitate the immigration operations.

COPA is an independent agency that investigates alleged misconduct by CPD officers, including anytime an officer fires their gun.