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Chicago becomes largest US city to independently abolish subminimum wage for tipped workers
Chicago Tribune ^ | Oct 06, 2023 | Alice Yin

Posted on 10/07/2023 4:51:02 AM PDT by Salman

Chicago on Friday became the largest American city to independently require that tipped employees make a full minimum wage, following a relatively easy City Council vote that delivered one of Mayor Brandon Johnson’s biggest political wins for his progressive agenda.

In a 36-10 vote, aldermen approved the measure that advocates said was direly needed for the lowest-paid service workers and that opponents countered would backfire, causing some employees in the service industry to be paid less and lead to higher menu prices and staff cuts. The ordinance becomes law immediately but the full impact won’t take effect for five years.

...

(Excerpt) Read more at chicagotribune.com ...


TOPICS: Culture/Society; Government; News/Current Events; US: Illinois
KEYWORDS: chicago; nomoretips
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At one time, I would have said this will kill Chicago's fancy restaurant business.

But crime has already killed it.

People coming in from the suburbs to shop was a major chunk of that customer base. That is gone.

1 posted on 10/07/2023 4:51:02 AM PDT by Salman
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To: Salman
Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.

Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

2 posted on 10/07/2023 4:53:05 AM PDT by mewzilla (Never give up; never surrender!)
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To: Salman

Unreal. Couldn’t stand missing out on the tax revenue.


3 posted on 10/07/2023 4:53:34 AM PDT by Rural_Michigan
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To: mewzilla
“ Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy”

Read that book after graduating from college. That should be mandatory reading in DIE schools instead of the Regressive Nonsense they are forcing on kids now.

4 posted on 10/07/2023 4:57:14 AM PDT by Chgogal (Welcome to Fuhrer Biden's Weaponized Fascist Banana Republic! It's the road to he)
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To: Chgogal

It’s the best book on economics, and real life, I’ve ever read.


5 posted on 10/07/2023 4:58:52 AM PDT by mewzilla (Never give up; never surrender!)
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To: Salman

Cool - no more tipping in Chicago.


6 posted on 10/07/2023 4:59:20 AM PDT by meyer (FBI = KGB for the DNC; IRS = Gestapo)
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To: meyer

Tipping was always 10%. Then suddenly 20%. A fifth of the invoice. What a rip off.


7 posted on 10/07/2023 5:09:46 AM PDT by yldstrk (Bingo! We have a winner!)
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To: Salman

The Bear dies in Season 3.


8 posted on 10/07/2023 5:13:53 AM PDT by HotKat (Politicians are like diapers; they need to be changed often and for the same reason. Mark Twain)
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To: Salman

Never understood the need for tipping. Pay staff whatever rate is appropriate. If the service isn’t acceptable, management should be aware of it and fix it. Or, the customer will fix it for them by not being a customer anymore.

I’d imagine the counter argument will be that going out for a meal will become more expensive. I think that ship has already left the dock and heading to open water.


9 posted on 10/07/2023 5:22:51 AM PDT by Made In The USA (Ellen Ate Dynamite Good Bye Ellen)
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To: Salman

Great news for restaurant frequenters in Chicago - at least for those that prefer sub-standard service.


10 posted on 10/07/2023 5:25:31 AM PDT by FLNittany (Autotune is jealous of Karen Carpenter)
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To: meyer

A few states pay tipped employees over $15 an hour. But we need to fork over 20% of our bloated bill, too.


11 posted on 10/07/2023 5:26:36 AM PDT by jean michael
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To: Made In The USA

If you ever go to Europe, you will quickly see the difference in service between workers who rely on tips and those who do not.

I just returned from Amsterdam, a city I love, but the service is typically far below standards for an American. No tipping there. You will wait much longer for service before, during and after the meal. Much, much longer. In Italy, it is even more pronounced.

I’ve learned to just relax when eating out in Europe, so I can take it either way. Tips, no tips. Whatever. I live in NYC and won’t be going to Chicago anyway.


12 posted on 10/07/2023 5:29:00 AM PDT by OA5599
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To: Made In The USA
“Never understood the need for tipping.”

Think of servers as independent contractors.

They provide the link between the kitchen and the table, they provide the base for the dinning experience.

A smiling, friendly, attentive server makes the meal a pleasant night. Well worth paying for.

13 posted on 10/07/2023 5:30:46 AM PDT by 1of10 (be vigilant , be strong, be safe, be 1 of 10 .)
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To: Made In The USA

Wrong. I am a frequent cruiser. I in old days waiters received cash tips on last day of cruise. Service was very good. Now they include tips in bill. Service has become erratic.


14 posted on 10/07/2023 5:31:12 AM PDT by entropy12 (Career politicians like Desantis build wealth. Trump sacrificed his wealth to serve people. GO TRUMP)
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To: OA5599

I’m waiting for NYC to dip their toe in this pool - in places like NYC and Chicago you need to turn that table over two or three times a night on busy nights to make a profit. That won’t happen with these goofy wage laws. I’ve also been to Amsterdam (and I’m from NYC) and seen the difference in service. That attitude will come here and table times will rise, which means three times a night will quickly dwindle to two... which is hard to justify the rent on a restaurant when you consider how expensive a storefront is in Manhattan.

Prices will go up, service will go down. Owners will be miserable, landlords will have to deal with folks who can’t manage the change.

That’s not to say that this model can’t work - it’s just extremely difficult. I know one guy (we went to school together, he should be a Freeper) who owns two restaurants in Oregon - he owns both buildings and pays his staff a salary and does not accept tips. Service is great but he doesn’t have the pressure of doing 3 covers per table on a Saturday night... because all of low rent (i.e. managable mortgage). He operates in niches so he doesn’t have to defend his prices much - which, mind you, would be “moderate” in a big city like NYC or Chicago.


15 posted on 10/07/2023 5:50:02 AM PDT by mjustice (Apparently common sense isn't so common.)
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To: Salman

when you pay for your meal you are paying for the product...when you tip you are paying for the labor.


16 posted on 10/07/2023 6:00:33 AM PDT by Paddyboy (Roma Omnia Vincit)
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To: Salman

Gonna need deep pockets to afford a Chicago deep dish pizza.


17 posted on 10/07/2023 6:03:22 AM PDT by dblshot
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To: Salman

Most Freepers are fascinated with the lowest rungs of the ecnomic ladder. It’s like they sit up at night fretting over a dishwasher could be, somewhere making $20.00/hr. Like it is a crises.


18 posted on 10/07/2023 6:04:23 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: Salman

That’s is then. A sit down meal is going to cost $1000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000.00 + tip.


19 posted on 10/07/2023 6:05:09 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: Salman

In Chicago, the tips will probably become $1/person if the service is efficient and also $1/person if the service is extraordinary.


20 posted on 10/07/2023 6:17:37 AM PDT by Brian Griffin
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