Additionally, new rules for paid time off have started. Workers who work at least 80 hours over 120 days can now get five days of paid leave and five days of paid sick leave, totaling 10 days. This was a compromise from the 15 days initially proposed.

Chicago Mayor Brandon Johnson aims to make Chicago the most worker-friendly city in the country. The wage increases were heavily debated last year. During the pandemic, hospitality workers voiced their struggles with relying on tips. Opponents, like some in the Illinois Restaurant Association, worried that higher wages would lead to increased costs and drive customers away, hurting restaurants.

Mayor Johnson’s election win in 2023 was crucial for passing the ordinance. In September, a new proposal suggested raising the tipped minimum wage to $20.54 per hour in restaurants using the tip credit, but a compromise was reached. The restaurant association agreed to a revised ordinance that set up a $500,000 fund to help smaller restaurants adjust and allowed unionized restaurants to pay lower wages as per their contracts.

People across the U.S. are watching Chicago to see how this change will affect the hospitality industry. Some states like Alaska, California, and Washington already have similar laws. In 2023, Washington D.C. raised its tipped minimum wage from $5.35 to $10 per hour. Legislators in 17 states, including Illinois, have proposed similar raises, but no bills have passed yet.