|
Today, the Chicago City Council introduced two ordinances that will have a profound impact on you and the future of our industry.
The first ordinance, the elimination of the tip credit over two years, would bring the current rate of $9.48 for tipped employees to the Chicago minimum wage over two years, starting July 1, 2024. The ordinance was introduced by Alderperson Jessie Fuentes, 26th Ward, and includes 25 co-sponsors. In a procedural move, Alderman Anthony Beale, 9th Ward, had the ordinance referred to the Rules Committee. Coverage of the tip credit ordinance can be found here.
The second ordinance, an increase in paid sick leave for Chicago workers, would require employers to give workers one hour of paid time off for every 15 hours worked, no matter the reason. Under the new ordinance, introduced by Alderman Michael Rodriguez, 22nd Ward, all employees that work at least two hours in a two-week period would be eligible to take paid sick leave. This ordinance, co-sponsored by 28 Alderpersons, if passed, would go into effect on January 1, 2024 for all employers of the city of Chicago, no matter the number of employees.
Given the introduction of both ordinances at the same time, our Association strongly urges members of the Chicago City Council to listen to you, to proceed cautiously, and to examine these issues carefully and dispassionately before committing to any kind of resolution or timeline for implementation.
Members of the Illinois Restaurant Association have opinions on all sides of this debate. Our responsibility today is to work tirelessly to educate everyone on the challenges you face and to bring our membership to the table.
The elimination of the tip credit will fundamentally change the model of restaurants and the future of the industry, including the potential for possible job losses, restaurant closures and price increases for consumers. Small businesses like your own are in a fragile state of recovery as you try to rebuild from years of financial distress following the pandemic in addition to current challenges posed by inflation and the cost of goods. In addition to these new financial burdens, the ordinance will introduce labor-related costs, such as an increase in FICA and workers’ comp insurance obligations.
In the coming days, we will look to share critical news and updates. Given the variety of voices on these complex issues, it is critically important to make your opinion heard directly and contact your elected officials. Please continue to reach out to the IRA with you questions and concerns.
We are resolute in our advocacy for you and the need to arrive at solutions that work for all Chicagoans.
Sincerely,
Sam Toia
President & CEO
| 
