How Chicago Phased Out the Tipped Minimum Wage

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Chicago’s restaurants will have to adapt as the tipped minimum wage comes to an end in 2028

Earlier in October, Chicago’s City Council, in a historic vote, abolished the tipped minimum wage, which will greatly impact restaurants in all 77 neighborhoods.

Supporters, including Mayor Brandon Johnson, pushed the One Fair Wage in hopes of protecting low-income workers. One Fair Wage is a national movement, and while Chicago’s tipped minimum wage of $9.80 per hour is higher than the federal standard of $2.13 per hour, red states — such as Indiana — have areas that pay workers the lower federal hourly wage.

Chicago’s transition over the next five years will be fascinating, as the city joins noted dining cities like San Francisco, LA, and D.C. Restaurants could start adding service fees or changing service models, leaning on QR code ordering and food running instead of traditional servers. Check out Eater Chicago’s coverage in the stories below.

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