Historic change for tipped workers: Subminimum wage to end in Chicago restaurants, bars
Tipped restaurant and bar workers in Chicago will make $15.80 per hour through raises over the next few years as subminimum wages are banned.
Roll out nation wide end to sub minimum wage and encourage an end to tipping culture at the same time!
Just hit the "no tip" button and move on with life. Sure, it's dumb that it even comes up; but, it's very likely a case of software set at it's defaults and the management thinking, "why not?"
The economic attraction of working for tips was that they were in cash. Most people don’t carry cash anymore, and they all pay with cards.
The world changed and it adapted to keep corporate profits. None of them gave a second thought to people who work to pay their bills. The people whose time and effort made them rich in the first place.
Or end up with an even worse tipping culture after the change anyway, like in Canada
Stupidest shit
“The Fair Labor Standards Act (FLSA) sets the minimum base wage at $2.13 per hour,…”
tells me all I need to know about this story
No doubt that’s why it passed.
That's fairly common. At least in New England.
The way it works is there's the tipped worker minimum wage, and if that + their tips fails to meet the local minimum, the employer is obligated to pay the difference.
So, $2.13/hr for a 4-10 shift is $12.78.
Chicago minimum wage is $15.80/hr. For a 6 hr shift, that's $94.80.
So if the employee didn't get $82.02 in tips that shift, the owner would have to cover that difference.
That is probably roughly what is made in tips on an above average 4 top in Chicago.
Don't get me wrong, industry workers are severely underpaid. If the restaurants didn't feed them most would probably not be able to afford rent.
This change seems like it will just hurt restaurants, not help employees meaningfully, and raise menu prices.
Someone in the industry in Chicago please correct me if I'm wrong about that initial assumption, because that's how it works in Boston, Portland, and a few others in New England.
Edit: lots of downvotes for explaining how it works. Cool platform! Glad to be here.
I'm a bartender of 12 years. Just telling y'all how it fucking works. Christ.
I love in Seattle where it is the same minimum wage for tipped workers as it is for everyone else at $16.50/hr for small employers. They predicted a restaurant Armageddon. Guess what did not happen?
As for prices at restaurants, they are basically the same as any other large city.
The change doesn't outlaw tips. So now they're getting better base pay, plus tips, and the owner is still paying the absolute minimum instead of slave wages. If ANY company can't afford minimum wage they shouldn't be in business. And honestly fuck you for being more concerned about the business than actual people.
They're only obligated if they think they'll get caught not doing it.
Just because the employer is legally obligated to do something doesn't mean that it often works that way in practice.
Excellent progress! Now we can conscionably stop tipping in Chicago too :)
Not immediately, they’re easing into it, 8% at a time, over the next few years, until it reaches parity with the standard minimum.
it sucks so much fucking ass living in a state that goes red 30 seconds after polls close, seeing other states pass progressive legislation that makes a meaningful, material, positive difference in people's lives -- while we're urgently rushing through fucking trans panic book banning horseshit
And the great part is that the more blue states pass reforms that are needed everywhere, the more it becomes a red state problem that no one in a blue state has any incentive to try to fix on a national level.
Of the 8 Democrats who made their utter contempt for workers known by voting against the minimum wage increase, all but two were from states that have a minimum wage higher than 7.25/hr. And the two were both from the same state.
