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.

...

[yldstrk]

I am older 67.

[Svartalfiar]

“ It’s like they sit up at night fretting over a dishwasher could be, somewhere making $20.00/hr.”

I doubt anyone cares what a dishwasher is paid except the dishwasher. If I eat in a restaurant, I hope he did a good job. Frankly, I hate tipping. Just pay the employee.

The problem isn't if a dishwasher is making $20/hr, it's when dishwashers in general are making $20 an hour. That's similar to what much more advanced or technical jobs make. So when the dishwashers are making double their 'normal' wage, that's gonna mean prices need to go up to cover that, and every other job's wages need to be twice as much to cover the boost.

The issue is that a job for someone with little to no skills, experience, or training should only be worth a minimal amount. And when that minimal amount goes up, so does everything.

[Night Hides Not]

Hey gator, the correct name of The restaurant is Der Lendinbaum. That’s as close as I’m going to get, I’m considering my level of life as intoxication. I’m having a great time…lol.

[EVO X]

The problem isn't if a dishwasher is making $20/hr, it's when dishwashers in general are making $20 an hour. That's similar to what much more advanced or technical jobs make.

I live in a Midwest metro area with a population of about +200K people. Good luck trying to find anybody to clean your house or cut your grass for less than $20 per hour.

[cyclotic]

I’ll have to remember not to tip in Chicago.

[cyclotic]

As food costs have been one of the fastest inflation sectors, I’ve lowered my tip percentage to 15 or so.

Unless the service is stellar.

I travel an inordinate amount for my job. Usually 2-5 nights a week. We ate st a high end steakhouse s few weeks ago. The service was exemplary he dared his tip. Over $100 for five diners.

[central_va]

So when the dishwashers are making double their 'normal' wage, The issue is that a job for someone with little to no skills, experience, or training should only be worth a minimal amount. And when that minimal amount goes up, so does everything.

Republican do yo ever listen to yourself? There is no such thing as a "normal wage". Wages are set by supply a demand, get it? When that minimal amount goes up, so does everything go up MINIMALLY.

[central_va]

So when the dishwashers are making double their 'normal' wage, that's gonna mean prices need to go up to cover that, and every other job's wages need to be twice as much to cover the boost.

Do you actaully believe that BS?

[CFW]

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

—

That is why so many of us in the south go to the Waffle House for our “dining out” experience, especially when traveling. Whether for breakfast, lunch, or supper, you can count on getting both a great meal and a friendly and competent waitresses (your sweet tea glass or coffee mug always stays full). Although I do recommend that you avoid the 2:00 to 3:00 a.m. experience which is just after the bars close.

We always tip the waitress very well because the service is always fantastic. Plus, you have to be a hard worker if you are working at the WH.

[ByteMercenary]

“What is good for thee is not good for me.”

For most politicians it is “What is good for thee does not interest me.”

[Svartalfiar]

There is no such thing as a "normal wage". Wages are set by supply a demand, get it? When that minimal amount goes up, so does everything go up MINIMALLY.

If there's no normal wage, why do similar jobs always tend to pay about the same?

Supply and demand of the market and the resource pool is what sets wages, companies aren't going to supply a ton of money just because the workers demand some large number.

Do you even know why businesses exist? It's to make money. If the ownership doesn't make more money than they put in, and enough of it to pay for all their personal expenses, the business isn't going to last. And labor costs are not a minimal expense, they're often 25-30% of the businesses expenses, and can easily go up to 50% or more in service industries. If you suddenly have to spend 50-75% more on 1/3 of your costs, that's big. And that's not it - your prices go up 15%, you take a 5% pay cut to cover the rest of the raise.
But wait - many of your suppliers have people making $10-15 and hour. Why would they butcher cows and make paper plates for that, when a dishwasher makes $20? So now they get raises, and your food/supplies costs (say 50% of the budget) are now going up by 20%. Guess you need to raise your prices again to make up for that. But your landlord is now paying 30% for his lawn mowers and painters and office staff and his personal pay, so your rent is getting a 20% boost also.

Hey look - now your "minimal" increase of doubling your dishwashers' pay (and obviously the rest of the employees wanted more, too!) is gonna result in you kicking prices up by quite a bit in the long term. Or taking a big cut on your personal pay.

A huge increase in no-skill jobs is gonna be felt everywhere, not just at the bar where the dude now has a bigger budget for beer.

[Svartalfiar]

I live in a Midwest metro area with a population of about +200K people. Good luck trying to find anybody to clean your house or cut your grass for less than $20 per hour.

I live in the DFW area. There are plenty of jobs all over that make $10-15 an hour. Almost all of which require more skill than washing dishes.

[EVO X]

The city of Chicago has a minimum wage of $15.8 for most workers and $9 or so for tipped workers. If the employee doesn’t make minimum wage during the shift, the employer is suppose pay the difference. The rest of the state will have a minimum wage of $15 by Jan 1, 2025.

[central_va]

If there's no normal wage, why do similar jobs always tend to pay about the same?

Because the capitalist system is corrupt, flawed and setting wages is evil. Having said that, Capitalism is the worst economic system except for all the others.

It eventually kills itself because really it is race to the bottom trying to see how little someone can be paid and still show up for work.

The goal is to always have a labor surplus so the working class can never have even playing field. Hence H-1B, H-2 visas and an open border.

[central_va]

And labor costs are not a minimal expense, they're often 25-30% of the businesses expenses, and can easily go up to 50% or more in service industries. If you suddenly have to spend 50-75% more on 1/3 of your costs, that's big. And that's not it - your prices go up 15%, you take a 5% pay cut to cover the rest of the raise.

But your competitors use the same labor pool so the point is? There is none.....

[central_va]

Evil governmetal wreckless spending creates inflation and the working class pays for it with the war on wages to keep the balance.

[Svartalfiar]

But your competitors use the same labor pool so the point is? There is none.....

...So their costs are going up just like yours, and their prices are compensating just the same? If anything, your statement enforces my earlier point that one random dishwasher at $20 is whatever. Every dishwasher at $20 is not good.

[Svartalfiar]

The city of Chicago has a minimum wage of $15.8 for most workers and $9 or so for tipped workers. If the employee doesn’t make minimum wage during the shift, the employer is suppose pay the difference. The rest of the state will have a minimum wage of $15 by Jan 1, 2025.

Well that's just one reason among many others that Chicago is down ~1.2MM people from its peak in 1950, while Dallas is up 800M in the same time frame.

Look at the bigger area, and the Chicago metroplex has gone from 5.5MM to 9.6MM from '50 to '20 (less than double), while DFW has gone from under a million to almost 8MM (8-9x growth) in the same time.

[EVO X]

Chicago definitely killed the goose that laid the golden egg. I suspect a fair amount of that loss was due to people moving to the suburbs and collar counties over the years.

[central_va]

..So their costs are going up just like yours, and their prices are compensating just the same? If anything, your statement enforces my earlier point that one random dishwasher at $20 is whatever. Every dishwasher at $20 is not good.

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.