
CHICAGO (WBBM NEWSRADIO) - How much do restaurant workers deserve to get paid?
Locally, the question has sparked quite the debate. This week’s Looped In: Chicago podcast episode offers perspectives from both sides of the table of the sub-minimum wage argument.
A portion of a federal law known as the Fair Labor Standards Act (FLSA) enables certified businesses, including restaurants the ability to pay tipped workers below the minimum wage. As it stands, Illinois remains one of 43 states that still allows restaurants and other service oriented business that allow sub-minimum wage.
That soon could change however. There’s momentum in the City of Chicago to eliminate the sub-minimum wage.
WBBM Political Editor Craig Dellimore joined the podcast to share insight on the issue as well as takeaways from his prior interviews with influential leaders in both the restaurant industry and fair-wage movement.
Sam Toia, president and CEO of the Illinois Restaurant Association, opposes the change and believes many smaller-type restaurants would go out of business if they had to pay workers a minimum wage.
Dellimore noted that since the COVID pandemic it has been a struggle for much of the restaurant industry.
“We lost, what, 20% of our restaurants? Maybe more? So, it is a financial issue. But...is it surmountable? In some ways, yes,” Dellimore said.
Toia echoed those sentiments to Dellimore earlier this summer.
“Small businesses are right now in a very fragile state of recovery as they try to rebuild from years of financial distress following the pandemic. So,any kind of legislation will have a profound impact on these businesses and the future of the restaurant industry for many years to come,” Toia said.
On the other end of the argument is Saru Jayaraman, president of the One Fair Wage, a nonprofit on a mission to create a full federal minimum wage and onw in which service workers can live off of.
In a recent conversation on WBBM’s At Issue program, Jayarman said those most hurt by the sub-minimum wage in the industry are women.
“The truth is that the overwhelming majority of these workers are women, still disproportionately women of color. Highest rates of single mothers of any occupation, highest rates of both poverty and sexual harassment of any industry,” said Jayarman. “These are mostly single moms working in very casual restaurants and dive bars across Chicago, Illinois and the nation.”
Ultimately, Dellimore envisions the City and the restaurant industry coming to a mutual agreement.
“What the compromise will probably be is phase-in time, in other words, how long the restaurants have to build up to it,” Dellimore said.
He believes both parties could settle on a five year period.
You can listen to the full episode in the audio player embedded in this story. You can also find this episode on the Audacy app or wherever you get your podcasts.
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