The Chicago City Council voted on Wednesday to suspend the ‘One Fair Wage’ ordinance, stopping mandatory wage increases for tipped employees, such as waiters, who currently earn below the city’s minimum wage. This decision halts wage increases for a minimum of two years.
The council’s decision to pause the wage hikes had overwhelming support, with only one alderman voting against the change. Instead of concluding the discussion, this action anticipates future efforts from the restaurant industry to completely abolish the wage increases.
The outcome is a significant setback for Mayor Brandon Johnson and his agenda focused on supporting the working class. Despite the decisive vote limiting his options, Johnson characterized the decision as a thoughtful compromise. He stated he would not veto the measure, expressing dissatisfaction with the change but appreciating the willingness to engage in dialogue and compromise.
We’re not going to sit here and act like what just happened isn’t problematic,” he said. “Of course my preference would always be to ensure that raises happen … but in the end, this is the compromise that folks agreed upon.
In March, aldermen voted to halt ‘One Fair Wage’ indefinitely; however, Johnson vetoed that move, arguing the subminimum wage is historically linked to oppression. On Wednesday, the compromise package delayed annual pay increases for tipped workers at large restaurants by two years and at smaller venues by four years. The decision has enough council support to override any veto from Johnson.
Both the national campaign supporting the original measure and the Illinois Restaurant Association opposing it have unwillingly accepted the compromise. Alderman Walter “Red” Burnett, the primary architect of the freeze, justified it as necessary for preserving jobs at restaurants at risk of closure.
Every one of us understands the importance of this moment to compromise to protect workers,” Burnett, 27th, said. “Today is an opportunity to meet the needs of both the workers and the restauranteurs who are trying to employ people in communities.
The decision, argued by Alderman Gilbert Villegas, was urgently needed by restaurants struggling with increased food costs and taxes.
It’s okay to say, ‘Hey, you know what? We tried this, it didn’t work. Let’s pause for a second, and let’s fix this and allow the economics to play out here,’
Alderman Jessie Fuentes expressed heartbreak, despite voting for the freeze. She highlighted that compromise often leaves parties unsatisfied.
Fuentes called on fellow aldermen to allow wage raises to take effect after the pause:
Allow this to be the last time that we litigate this. Let us take the pause. Let businesses have the beat,” she said. “And then let’s give our workers the raises that they deserve.
Despite Fuentes’ support, Alderman Jason Ervin criticized the delay as an economic and moral failure. He warned the delay would disproportionately affect Black Chicagoans.
There’s a difference between compromise and caving in. This is a cave-in on the people in the South and West sides,” he said. “What we’re telling people is to let them eat cake.
The freeze was approved by a voice vote, with Ervin the only alderman expressing formal opposition. The original ordinance, passed by a 36-10 vote in 2023, had raised subminimum wages from $9.48 to $12.62. It aimed to further raise wages on July 1 and eliminate subminimum wages entirely by 2028. The new measure modifies this timeline: wages will be frozen until 2028 at large restaurants and 2030 at smaller ones. After the freeze, gradual implementation of the ordinance will resume.
Based on recent opposition from the Illinois Restaurant Association, efforts may resurface to block the implementation of the raises. Association President Sam Toia didn’t discount future steps to oppose the planned wage increases, reiterating support for maintaining the subminimum wage.
We do not think tipped credit should be eliminated,” he said. “We shall see where things are in two years, but we will always support keeping the tip credit.
Recent negotiations excluded input from Johnson’s administration, according to several sources. During negotiations, Toia proposed maintaining subminimum wages but requiring restaurants to pay tipped workers 124% of the city’s minimum wage, inclusive of tips. Restaurant owners are currently mandated to supplement the gap between lower wages and the city’s minimum wage if tips fall short.
The meeting opened with a surprising apology from former GOP gubernatorial candidate Darren Bailey, addressing his prior campaign remarks referring to Chicago derogatorily. Bailey admitted he spoke inaccurately about the city, clarifying that he intended to criticize political leadership.
The City Council also enacted an ordinance honoring civil rights leader Rev. Jesse Jackson, aiming to protect voting rights through several measures, such as new mailbox requirements and restrictions on sharing government workers’ personal information. The ordinance faced debate over its necessity alongside existing election protocols, but supporters argued it provides essential safeguards amid threats to voting rights.
Aldermen approved a settlement with Access Living, a disability advocacy group, in response to a lawsuit accusing Chicago of insufficient accessible housing for people with disabilities. The agreement includes a $2.25 million payout and a commitment to construct nearly 3,000 units for individuals with mobility, hearing, and sight limitations.
Additional City Council actions included the appointments of William Cheaks as Department of Transportation Commissioner, David Glockner as Inspector General, and activist Anjanette Young on the Community Commission for Public Safety and Accountability.
The council also granted a $55 million tax incentive for the initial phase of the $7 billion ‘1901 Project’ development near the United Center, led by sports team owners Reinsdorf and Wirtz.
A proposal supporting a referendum to establish a city charter was rejected. The charter would outline and potentially revise city governance powers.
Reporter Alice Yin contributed to this article.