(WBBM NEWSRADIO) – By Wednesday, the city of Chicago could be well on its way to ending the “subminimum” wage earned by service workers who are tipped.
The City Council Workforce Development Committee is expected to consider a compromise proposal to abolish the subminimum system that exists for employees such as restaurant and tavern employees. Over a period of five years, their wage would rise to match the minimum wage for other employees in Chicago -- $15.80 an hour, currently.
The original phase-in period was two years. But two weeks ago, 26th Ward Ald. Jessie Fuentes, a lead sponsor, indicated they were willing to negotiate. The Illinois Restaurant Association has now agreed to the change.
Some in the hospitality industry had argued many restaurants would go out of business if they have to pay their employees Chicago's full minimum wage, plus their tips. Right now, they make about $6 an hour less.
Some establishments are already paying the higher salaries. Terri Evans, owner of Windy City Ribs and Whiskey, said owners need to take care of their employees. She’s making money, she said.
The compromise has the blessing of Mayor Johnson, so it should progress smoothly.
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