Chicago tipped workers’ pay freeze approved by City Council, prompting mayoral veto fight

On March 19, 2026, Chicago tipped workers were at the center of a contentious City Council decision that freezes a scheduled phaseout of the subminimum wage. The Council voted 30-18 to halt the five-year reduction in the tip credit, effectively keeping tipped employees at 76% of the city’s $16.60 minimum wage — about $12.62 an hour — and setting up what Mayor Brandon Johnson has indicated will be his next veto. Thirty-four votes would be required to override that veto.

The move was driven in large part by organized restaurant industry pressure. The Illinois Restaurant Association backed the freeze and presented surveys it says document widespread strain: nearly 500 restaurant closures in the first half of 2025, a full-service restaurant workforce still roughly 7,800 jobs below pre-pandemic levels, and business adjustments that include price increases and reduced staffing. Far South Side Ald. Anthony Beale urged colleagues to prioritize struggling neighborhood businesses, warning that continued pressure could push establishments to close or relocate outside the city.

Opponents of the freeze framed the vote as a blow to low-wage service workers, particularly women of color, and Mayor Johnson called the Council action "shameful," saying he will veto to protect vulnerable employees. Johnson has already exercised veto power on other measures this term, and council members including Ald. Anthony Quezada and Ald. Byron Sigcho-Lopez vocally opposed depriving tipped workers of the planned wage gains. The decision leaves the city headed toward a high-stakes showdown over wages, affordability and the future of neighborhood restaurants.