Tipped restaurant and bar workers in Chicago will make $15.80 per hour through raises over the next few years as subminimum wages are banned.
Tipped restaurant and bar workers in Chicago will make $15.80 per hour through raises over the next few years as subminimum wages are banned.
Will tips still be included though? Or are they eliminating tips?
Washington State changed the minimum wage years ago and mandated it to include tipped workers. It didn’t really change the tipping, but the tips still went to the staff, so at least the workers got a more livable income out of the deal.
I’m just sick of tipping now, I’m done. I won’t go to restaurants anymore because of it
Chicago does tips on top of the wage. That hasn’t changed. So that might mean eliminating tips to some patrons.
Tips will be mostly irrelevant once patrons are not shamed and manipulated into paying tips. If the salaries are already paid, most people will not tip.
Tips finally got to a breaking point in the US and they’re on the way out for good.
Tips would probably go to the company. They’ll get their’s no matter what.
Pretty sure a tip intended for an employee going to the employer is illegal. Employers cannot keep tips.
You think the law will stop them?
The NLRB loves cases like this
The NLRB is not a true friend to workers.
This is true, in Illinois. However, restaurants can do whatever they like with “service charges”, though customarily those go to the service staff. Automatic gratuity is already illegal in Illinois, or at least illegal to enforce, so a lot of restaurants already apply a service charge on large parties… easy enough, and perfectly legal, to expand that and claim it as revenue.
And that’s just the legal route. Wage theft is rampant in this industry, at least in Chicago.
Source: Am current server in Chicago for over decade.
How can they just get away with doing the same thing simply by calling it something else?
Because tips, even automatic ones, go straight to servers and the restaurant isn’t taxed on that money. Service charges are counted as revenue and the restaurant has to pay taxes on it.
So the state has an interest in encouraging the latter, since it gets taxed twice.
Don’t they charge income taxes on tips?
Yes, but with service charges, the restaurant is taxed as revenue AND the sever is taxed as income.
You think it’s just in Chicago? Wage theft is the biggest type of theft in the entire nation. Dollar for dollar, it dwarfs the rest put together.
That would be illegal.
Always has been. https://inthesetimes.com/article/wage-theft-union-labor-biden-iupat#:~:text=Employers steal billions of dollars,common%2C it is rarely reported.