New "tip credit" freeze advances in Chicago City Council

CHICAGO CITY HALL (WBBM Newsradio) -- Restaurant and bar workers in Chicago may have to wait a little longer for that raise after all, under a new proposal advanced in City Council.

The measure receiving preliminary approval during a committee meeting Tuesday is the latest attempt to tap the brakes on Chicago's ordinance phasing out the "tip credit" for hospitality workers, as restaurant owners raise concerns about higher costs.

The compromise from West side Ald. Walter "Red" Burnett would freeze the "tipped" minimum wage at its current level of $12.62 for two years, with an additional two-year freeze for smaller restaurants. The freshman City Council member who represents the Fulton Market restaurant enclave says it's the result of weeks of conversations with restaurant owners and labor groups.

"They have been expressing concerns from both sides," Ald. Burnett (27th Ward) said before the vote. "They want to increase their wages, but they don't want to lose their jobs. This allows for more time for it to be done right."

Representatives of industry and labor groups, who have argued publicly for years about the impact of the "One Fair Wage" law on businesses, signaled they would not oppose this compromise.

"We will always oppose elimination of tip credits," Sam Toia from the Illinois Restaurant Association said, adding "We can support the substitute." Saru Jayaraman from the One Fair Wage coalition told aldermen the group can "live with" the substitute, noting that it "should be the end of the conversation" about delaying any increase in wages for service workers.

Northwest side Ald. Jessie Fuentes (26th Ward), who sponsored the original "One Fair Wage" ordinance, echoed that sentiment: "I hope this is the last time we have to litigate this in the city of Chicago ... because both workers and business owners deserve the very best of us."

The proposal is now headed for the full Council.