The Chicago City Council is considering proposals to eliminate the tip credit in restaurants, forcing an increase in labor costs of over 144%.
Chicago’s small businesses and working families are struggling after years of pandemic restrictions and high inflation. They can’t afford more meddling from City Hall.
– Tipped workers report earning more than Chicago’s minimum wage ($15.51/hour) on average. Tipped workers can make as high as $84 per hour.
– A 2022 study from University of California-Irvine found that for every $1 increase in the tipped minimum wage, there is a corresponding 6.1% decrease in tipped restaurant employment.
– Tipped workers are 20% less likely to be poor than standard minimum-wage workers.
– 97% of tipped employees and 82% of restaurant patrons support the tip structure.
Restaurants and service industry employees make Chicago the place that we know and love. They operate on some of the thinnest profit margins of any businesses in our city. Stand with them and ask your alderman to save the tip credit!
