Politics

Mayor Vetoes Measure That Would Block End to Tipped Minimum Wage

Mayor Brandon Johnson on Wednesday vetoed an ordinance that would reverse a 2023 City Council vote to phase out the tipped minimum wage, keeping one of his major legislative accomplishments intact — for now.

The Chicago City Council voted 30-18 on March 18 to scuttle a plan approved nearly two and half years ago that gave restaurants until July 1, 2028, to phase out the tipped minimum wage, while giving servers and other workers who earn gratuities 8% raises annually on July 1.

All Chicago businesses should be required to pay their workers the same minimum hourly wage, regardless of whether they also earn tips, Johnson said before vetoing the measure at Let’s Eat to Live in Woodlawn.

The mayor, who faces reelection in less than a year, cast the fight over the tipped minimum wage as a battle against those who would block Black and Latina women working in the service industry from being paid fairly. Johnson signed the veto at an event designed as a pep rally attended by allies and supportive members of the City Council.

“There’s never been a right time, ever, to roll back the rights and gains of women, particularly women of color,” Johnson said, decrying the increase in the cost of gas, rent and groceries. “It’s especially tone deaf and disturbing to see individuals attempt to do that in this moment.”

It will take 34 votes for the City Council to override Johnson’s veto, the third he has issued in less than a year. That effort is expected to take place on April 15.

Budget Committee Chair Ald. Jason Ervin (28th Ward) flanked Johnson as he signed the veto, an indication he would not vote to override the mayor, even though he left the chamber on March 18 rather than cast a vote on the measure to roll back the elimination of the tipped minimum wage. The other alderperson not to vote on the measure was Education Committee Chair Ald. Jeanette Taylor, whose 20th Ward includes the restaurant where Johnson held Wednesday’s event.

Johnson, who has has consistently blamed wealthy business leaders in Chicago for opposing his policies and initiatives, said he was proud “to stand here to resist every single attempt to undermine workers in this city.”

Johnson urged Chicagoans who support his push to keep the elimination of Chicago’s tipped minimum wage to call their alderperson and urge them not to override his veto. 

“This is yet another opportunity to call the people of Chicago to action,” Johnson said. “And here’s what we’re asking you to do: If you believe that women who serve this city, who are raising families in this city, who pay taxes in this city, if you believe that they deserve equal pay for the work that they are doing, call your alderperson and tell them that you agree with that.” 

The measure vetoed by Johnson was designed to freeze the subminimum wage at 24% of the city’s $16.60 per hour minimum wage.

Supporters of that freeze said it was a mistake for Chicago to join Alaska, California, Guam, Minnesota, Montana, Nevada, Oregon and Washington. In June, Washington, D.C., leaders put their efforts to phase out the minimum wage on ice.

Sam Toia, the CEO of the Illinois Restaurant Association, in a statement called Johnson’s veto “misguided.”

“It will eliminate jobs, reduce take-home pay for restaurant workers and cause irreparable damage to the vibrant restaurant industry in each of Chicago’s 77 communities,” Toia said.

Tipped workers must now be paid $12.62 per hour by their employers, assuming tips account for at least another $3.98 per hour.

Restaurant industry groups and supporters of the measure to keep the tipped minimum wage on the books contend that the pay raises have cut into restaurants’ already thin margins, forcing them to cut jobs and shelve expansion plans.

There is no sign that the pace of restaurants closed at a higher rate after the City Council’s vote in 2023, Johnson said, dismissing critics’ concerns.

Johnson has also said ending the tipped minimum wage would protect workers who rely on tips because they are more vulnerable to sexual harassment, wage theft and abuse than other employees.

The 2023 vote was a major victory for Johnson, who vowed to end the tipped minimum wage during his campaign for mayor, calling it a vestige of slavery since most of those who rely on tips to earn a living wage are more likely to be Black and Latina women.

The Service Employees International Union Healthcare Illinois is part of the national campaign to end the tipped minimum wage known as One Fair Wage.

Contact Heather Cherone: @HeatherCherone | (773) 569-1863 | [email protected]

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