The Illinois Restaurant Association released the following statement in response to the passage of today’s ordinance regarding the tip credit.
“The Illinois Restaurant Association maintains its firm opposition to the elimination of the tip credit. Our position is rooted in the proven benefits we have seen firsthand for both servers and operators.
Over the past several months, we have been engaged in productive dialogue with operators, servers, and alders, regarding a proposal we endorsed that would have bolstered worker protections while guaranteeing tipped workers’ wages equal to 124% of the standard minimum wage. Throughout these negotiations, our primary focus has remained constant: ensuring workers receive the compensation they deserve while allowing employers to keep their doors open.
While we believe our proposal was the best path forward, the ordinance passed by the city council today provides a critical lifeline for restaurants during these challenging economic times, and for that reason, we support its passage.
With Chicago’s full-service dining sector losing 2,100 jobs over the last year, and local businesses facing the pressures of rising costs, thin margins, and ongoing economic hardship, it was essential to collaborate on viable solutions to support this industry.
We thank the Chicago City Council for passing this measure, because it will support our restaurant workers, small businesses, and the 77 communities they serve,” said Sam Toia, President and CEO, Illinois Restaurant Association.
