Chicago becomes largest US city to independently abolish subminimum wage for tipped workers

Chicago Tribune ^ | Oct 06, 2023 | Alice Yin

[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.

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[MinorityRepublican]

Up to Chicago to come up with the law but making things more expensive is not going to help.

[Svartalfiar]

It is not good or bad because FREE MARKETS for labor are good. Look , a lot of so called right wing Republicans are market hypocrites - just like you. Don't feel too bad most don't realize it; but now you do.

How is it a free market if employers are forced to pay a certain amount to employees doing stuff that isn't worth that amount? If the market can't freely correct it the easy way (pay the job what it's worth), then it will correct in other ways, by eliminating/reducing those jobs, or increasing the $$ numbers everywhere until a new equilibrium is reached, with every other job getting paid more and everything costing more.

[central_va]

“worth” is determined by the laws of supply and demand. The floor on wages i.e. the minimum wage doesn’t change that fact. Maybe we need ceiling on “maximum” profits? Or here is one you’d love a ceiling on “maximum” wages.

[Svartalfiar]

“worth” is determined by the laws of supply and demand. The floor on wages i.e. the minimum wage doesn’t change that fact. Maybe we need ceiling on “maximum” profits? Or here is one you’d love a ceiling on “maximum” wages.

A floor doesn't change that fact, it only moves the line on whether your value is enough for the employer to hire you or not. If your value is significantly below the floor, your job is likely to get doubled-up or otherwise covered by other jobs and the position eliminated. If you're worth $5, and the floor if $10, those ten open positions are gonna get reduced to five or six openings, that simply have the same duties as the ten original spots.

And why wouldn't you want a ceiling on maximum profits? That's very Communist of you... And a ceiling on wages makes as much sense as putting in a floor.

[cherry]

I am personally rethinking this tipping business...used to give at min. 18% but usually 20%....I’m thinking now “why”?...the workers are getting much better pay now....

[cherry]

I mean, you’re paying a good chunk for a service....why pay MORE for that service?...its not like they’re giving you free stuff or extra service...