But Will You Still Tip? Chicago City Council Votes to End Tipped Minimum Wage (how much, home)

[chasfh]

As reported here:

https://news.wttw.com/2023/10/06/chi...d-minimum-wage

From the story:

The measure approved by the City Council represents a compromise between [Chicago Mayor Brandon] Johnson and the Illinois Restaurant Association that will give restaurants five years to prepare for the end of the tipped minimum wage on July 1, 2028, while giving servers and other workers who earn gratuities annual 8% raises starting July 1, 2024.

Chicago’s minimum wage for most workers rose to $15.80 per hour on July 1, an increase of 40 cents, to keep pace with inflation.

The minimum hourly wage for employees of large Chicago businesses who earn tips rose by 48 cents on July 1 to $9.48 per hour, officials said. If a worker’s tips are not sufficient to cover the gap between employees’ wages and the city’s minimum wage, employers are required to make up the difference.

Federal cash minimum wage for tipped employees currently stands at $2.13, something that is fairly well-known, and this is indeed the same cash wage tipped employees receive in 16 states, while in six other states it is still $3.00 or less. In Illinois, though, the minimum cash wage for tipped employees is currently $7.80. See, here:

https://www.dol.gov/agencies/whd/sta...um-wage/tipped

In Chicago, as reported in the story above, the minimum cash wage for tipped employees is currently $9.48, and will go up 8% a year until full parity with non-tipped minimum wage is achieved in 2028.

That brings us to the question at hand:

Will you still tip people who work in what have been traditionally tip-based jobs even once the minimum wage becomes the same as that for non-tipped employees? Remember that the argument for tipping employees had long been based specifically on the idea that, since they haven't been making minimum wage, they needed customers to tip them in order to bring them up to at least the same living wage as a non-tipped minimum wage worker makes.

Since they will be at wage parity in five years—will you still be tipping them?

[Master Jay]

I may. A little something extra never hurts!

[GWoodle]

Simple answer would be to not go to Chicago restaurant. There are plenty of choices elsewhere. Won't have time to know if the server is getting $10/hour or what. Could be slow day/time.

In the e economy tips may be added to the bill electronically. You no longer need to tip at the table. You can choose the amount you tip. Depends if you want to tip 10%,20%, or some amount.

I would hope for good service would continue to tip & be generous.

[heavymind]

Originally Posted by chasfh

Will you still tip people who work in what have been traditionally tip-based jobs even once the minimum wage becomes the same as that for non-tipped employees?

No. This has been a long time coming and I hope it spreads nationally.

Lots of other jobs are also hard work and have to engage with the public, and they don't get tips. Just get rid of it across the board. Finally restaurants will actually pay their employees salaries like every other business on the planet. Why the customer has been subsidizing wages for restaurant workers for so long is puzzling.

If someone goes out of their way for me and is genuinely helpful I won't hesitate to offer them a tip, no matter what line of business they're in. If it's inappropriate to offer cash, I may send or drop off a token of thanks (food, booze, gift card, etc.) later on.

[Master Jay]

When I go through a grocery store or Menards, I will offer to buy the cashier a candy bar or something from the display near the register.

I've tipped people at McDonald's, especially if they keep their cool and are polite, particularly if they are beyond busy and the customers are being rude.

[chasfh]

Originally Posted by heavymind

{snip}

Lots of other jobs are also hard work and have to engage with the public, and they don't get tips. Just get rid of it across the board. Finally restaurants will actually pay their employees salaries like every other business on the planet. Why the customer has been subsidizing wages for restaurant workers for so long is puzzling.

{snip}

I think the main reason it persists today is to allow restaurants and others to show low prices to the customer, even though they don't reflect the final cost you will pay. I think that's also the same reason tax is line-itemed out and not folded into the price, either.

So if there's an entree you see on the menu that costs $29.99 and you order it, once you get billed and after they add some 10% tax and, say, 20% tip to it, which many people consider the minimum, all of a sudden you're paying $39 for the entree, not the $29.99 presented to you. It's a basic form of dishonest deception that we have come to accept, and restaurants have no interest in getting rid of the situation that leads to it, because having to show you the higher price you would actually pay will only cost them business.

Also, not for nothing, tipping relieves the employer of the responsibility of having to pay the employee a living wage and shifts that burden directly onto us, the customer. So, instead of the employer being the bad guy for failing to pay the employee a living wage in the first place, we the customers are the bad guy for not tipping them, or even for tipping them less than what they think they are due, which, these days, is 20% minimum. Pretty neat deal for the employer, huh?

[Treeman1]

So servers will be making $15.80/hr in five years. Did I read that correctly? So $130/shift or so?

A pretty far cry from the $200+/shift they generally make today after tipping out in today's dollars at mid-tier places.

Good for those working in crappy restaurants, bad for those at mid- to-upper tier eateries.

People will still tip, however. That, or restaurants will continue raising wages. For instance I don't see the Aviary bartenders coming home with only $130 a night; otherwise, goodbye Aviary

[heavymind]

Upper-tier eateries should be able to afford to pay their workers a higher wage, as opposed to McDonald's, which should rightfully pay around minimum wage...it's an entry level job. Upper tier servers are more skilled and professional and should be compensated for that.

As with any other industry on the planet, if it doesn't pay enough or you need to make more money, get into a different line of work that offers that.

[Kmanshouse]

I hope we can get to the Iberian way. The price on the menu is what you pay, period. And tips are occasional and usually just rounding up. E.g if a bill is $42 throw down $45 and they keep the change. It's awesome and freeing for both the customer and the server.

[HodgePodge]

I've always found tipping @ restaurants as a strange thing to do. I mean I do it because it's expected.

But how often have you had horrible service or even rude service? At those times I don't tip. My thoughts are that you are suppose to tip for decent / great service.

TBF at a busy restaurant, the servers make a lot of their earnings via tip... unless the business rips them off by taking a chunk.

I'd like to know how much $$$ the typical restaurant makes and if they are super profitable, then they are doing it off the backs of the servers by underpaying them, putting the burden of paying them on us customers.

I say get rid of this antiquated way... the price you see is the price you pay.