The City Council voted 49-1 Wednesday, May 20, to freeze Chicago’s tipped minimum wage at $12.62 for two years, ending months of conflict between Mayor Brandon Johnson’s administration and aldermen over how to handle the sub-minimum wage.
Starting in year three, the tipped wage will rise with the Consumer Price Index. If minimum wage climbs 2.5 percent on July 1, 2026, as expected, the tipped wage will rise to $12.93, according to Sam Toia, president and CEO of the Illinois Restaurant Association.
“It’s froze at 24 percent,” Toia said. “So right now, minimum wage is $16.60 and tip credit is $12.62. But if minimum wage goes up with the cost of living, like 2.5 percent, which we think it will, then so will the tip credit.”…