In Chicago, servers who depend mostly on gratuities may disappear by the end of the decade.
Why it matters: Tipped work (some lucrative, lots not) has been a part of our economy for more than 150 years, and ending it could massively shift how Chicagoans pay for services, run businesses and earn a living.
Driving the news: On Wednesday, the City Council Committee on Workforce Development is expected to introduce and advance a proposal to phase out the minimum wage for tipped workers (currently $9.48 an hour) over five years.
Catch up fast: The proposed ordinance was recently revised in a deal hammered out between Mayor Brandon Johnson, alders and the Illinois Restaurant Association (IRA).
What they’re saying: “I can count votes, and I saw the writing on the wall,” IRA president Sam Toia tells Axios. “I think they probably could have pushed this through with a two-year phase-in. The five-year phase-in is much easier to bake into [a restaurant’s] numbers.”
The other side: Saru Jayaraman, president of One Fair Wage, in a statement called the effort a “breakthrough,” saying it serves as “an example of what is possible when workers, advocates and elected leaders with the political courage stand together.”
The big picture: If the measure passes, Chicago would follow in the footsteps of California and D.C. The latter is phasing out its tipped minimum wage from $5.35 in May to at least $17 by 2027.
What we’re watching: If Johnson can pass OFW and Bring Chicago Home — his real estate transfer tax proposal to raise money for homeless services — during his first year in office, it will mark a swift shift to the left for city code and a delivery of key campaign promises.
What’s next: If the compromise ordinance is approved in Wednesday’s meeting, it will advance to a full council vote on Oct. 4. If it passes, incremental raises could start in July 2024.
Source: axios.com
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