A City Council committee discussed the possibility Wednesday of eliminating sub-minimum wage for tipped workers in the city, NBC Chicago’s Christian Farr reports.
In an era where "tipping fatigue" has become a common term and etiquette becomes more unclear, could changes soon be in store for restaurants in Chicago?
A City Council committee discussed the possibility Wednesday of eliminating sub-minimum wage for tipped workers in the city.
The move would mean raising the minimum wage for tipped workers from $9 to $15.80, though such employees could still get tips.
Some advocates say the move will offer a fair wage for many restaurant workers who have long gone underpaid, but others have acknowledged the change could put increased pressure on restaurants, with some saying the city would need an expansion of outdoor dining, for example, to offset the costs.
Some have cautioned that changes to labor costs could end up costing consumers even more, as many battle surcharges due to inflation and more.
The debate comes as many across the U.S. have a negative view on tipping, according to a new survey.
BankRate reported recently that a survey found "roughly two in three U.S. adults have a negative view about tipping." But at the same time, 41% of Americans said they believe "businesses should pay employees better rather than relying so much on tips."
"In industry, an operator only has two things that he or she controls - that's either product costs and, or labor costs because fixed costs are fixed costs," said Illinois Restaurant Association President Sam Toia.
Still, according to the BankRate survey, fewer people are tipping waitstaff every year, with only 65% saying they always tip a server when dining at a sit-down restaurant, down from 73% in 2022 and 75% in 2021.
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One move some experts say should stay off the table, however, is the elimination of a tipped wage entirely.
"So we really think the tip credit model works," said Toia. "But you see some people saying we should get rid of the tip credit model and that will bring even more chaos because you'll see more service charges and then the consumer does not know if he or she should tip on top of that."
Toia noted that some workers might prefer a tipped wage over a fixed one.
"I think the majority of the wait people like the tip credit wage because they have a four- or five-table station- that's like their own little restaurant," he said. "Then they could, you know, basically upsell, you know, desserts, they could sell wine, they could sell spirits, you know what I mean? And give better service and when you get better service again ... it's in our DNA here in the United States to tip."
The committee vote could set the stage for a larger City Council vote.
