CHICAGO (WBBM NEWSRADIO) -- Some key Chicago Aldermen, labor leaders and others are joining in a push to do away with the so-called "sub-minimum" wage paid to those who also earn tips.
In theory, restaurant workers can be paid a salary lower than the minimum wage, because they make up for it in the tips they earn, but labor advocates say that doesn't happen by a long shot, so they want servers and others to get minimum wage plus tips.
Sam Toia, President of the Illinois Restaurant Association, said the industry is suffering right now due to the effects of the pandemic and inflation.
"If we eliminate the tipped credit, you're gonna have more empty storefronts," he explained. "Small businesses are in a very fragile state of recovery as they try to rebuild from years of financial distress following the pandemic."
But Saru Jayaraman, President of the national group One Fair Wage, said there is evidence that's not the case. She said that seven states that already require full minimum wage with tips for restaurant workers.
"Small businesses are growing faster in those states, so in fact California's small business restaurant growth rate is double Illinois' small business restaurant growth rate."
City Council Budget Chairman Carlos Ramirez-Rosa, Mayor Brandon Johnson's Floor Leader is among those leading the charge for a new law.
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