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Illinois Restaurant Association Drops
Opposition to Abolishing Tipped Minimum Wage
The tipped minimum wage in Chicago will be phased out over five years. Each year, the current minimum wage of $9.48 will increase by 8% until it matches Chicago’s standard hourly minimum wage of $15.48. This gradual increase allows restaurants to adjust, which could mean raising prices, changing menu options, or applying service fees.
The revised ordinance, which comes up for a vote in October, goes into effect in July 2024. A $500,000 pool from private funds will help smaller restaurants transition; the measure also includes a carve-out for unionized restaurants to pay lower wages if they have contracts.
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