CHICAGO (WBBM Newsradio) - There is a growing movement nationally and here in Chicago to eliminate the sub-minimum wage for tipped workers. It’s sparking a potential fight with restaurant owners.
The City of Chicago is weighing a measure that would gradually increase the minimum wage for tipped workers by 40%, according to a recent report from Crain's Chicago Business.
“That's an extremely high number to move from nine to 15, and the employees still get tips,” said Izzy Kharasch, president of Hospitality Works in Chicago.
Kharasch joined the WBBM Noon Business Hour to explain that money has to come from somewhere.
“Of course, that’s going to affect the people going out to eat when they see menu prices start to really go up…because already restaurants profitability...margins have been cut in half since Covid and driven down even further,” he said.
Kharasch said an increase in payroll will also likely lead to downsizing in the hospitality industry if the measure moves forward.
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