Skip to main content

Chicago’s Mayor Proposes Quicker Minimum Wage Hike For Many, But Not All, Workers


Last week, Chicago Mayor Lori Lightfoot, announced her proposal for hourly workers in the city to earn $15/hour by 2021, four years sooner than the rest of the state.  However, this proposal would only see tipped workers in the city earning 60% of that.

Many readers are likely wondering what the specifics are of the Mayor’s proposal.  Let us take a closer look:


  • Chicago’s $13/hour minimum wage rate would rise to $14/hour on July 1, 2020 and then again to $15/hour in 2021. 
  • Further wage hikes would be guaranteed and tied to the consumer price index.  However, further wage hikes would be capped at 2.5%. 
  • Hourly workers under the age of 18 would be able to obtain a $15/hour wage more gradually, eventually reaching that wage rate by 2024. 
  • By 2025, the city would abolish the minimum wage exemption for teen workers. 
  • Employers with 20 or fewer employees would be given more time to raise their hourly pay rates, eventually reaching $15/hour by 2023.
  • Employers with 4 or fewer employees would be exempt. 

Some might wonder why the Mayor’s proposal would only minimally impact tipped workers.  The Mayor indicated these tipped workers were for the large part excluded from her proposal, out of concern for how it would impact small businesses.

Many Chicago politicians expressed concern over the fact that tipped workers would not benefit from this proposal, namely because poverty apparently plagues many tipped workers in the city.  (Only allowing these hourly workers to realize a 60% benefit of the proposal would therefore do little to help poverty rates in the city.)  While I do not think the Mayor’s proposal will ultimately be approved, I would expect this to be a stepping stone to helping hourly workers in the city see their wages increase before the rest of the state.  Whether tipped workers in the city can find their way into this, or another, proposal is likely the key thing to watch going forward.



Comments

Post a Comment

Popular posts from this blog

NLRB: Discussion Among Employees About Tip Pooling is Protected Concerted Activity

  This Advice Memorandum from the National Labor Relations Board’s Associate General Counsel, Jayme Sophir, addressed whether employees which discussed and complained about tip pooling at work constituted protected concerted activity. In relevant part, an employer in New York operated a chain of steakhouses.  While tip pooling was in place at these steakhouses, some of the employees objected to it on the grounds that it was not transparent and improperly divided tips among the workers.  Employees were told not to complain or talk to each other about the tip pool and were told that doing so would endanger their jobs.  Despite the employer later attempting to provide some clarity as to how the tips were being divided, rancor still existed among some employees.  At one point, the employees were told by a general manager that some employees that had been talking about the tip pool were “cleared out” and the employer would continue to do so. In the Advice Memorandum,...
Post a Comment
Read more

Breaking: Labor Secretary Rumored to Be Leaving Administration

A few hours ago, word leaked out that Labor Secretary Marty Walsh (“Walsh”) is in the midst of negotiations to head up the NHL Players Union and leave his position at the Labor Department. Walsh, who has served as the sole Labor Secretary under President Biden, has taken part in a labor renaissance of sorts as support for organized labor has increased during his term as Labor Secretary (although the number of workers that have joined a union over the past two years has not grown as mush as some expected.)  He has also overseen the ongoing negotiations with rail workers over a new contract, although that matter is still on shaky ground and playing out as we speak. As for who might step into the vacant Labor Secretary role, there are already rumblings that President Biden should nominate Deputy Labor Secretary Julie Su (a strong labor advocate) or even a progressive like Senator Bernie Sanders.  Until Walsh officially gives his notice, however, I would expect some/many potential...
Post a Comment
Read more

San Diego Rolls Back Vaccine Mandate For City Workers

Last Tuesday, the San Diego City Council voted to do away with the vaccine mandate for city employees. The city’s vaccine mandate that was in place required city workers to get the coronavirus vaccine or risk termination.  Perhaps to this surprise of no one, the city’s policy came under fire with 14 employees being terminated and over 100 other employees resigning.  With the coronavirus subsiding, including in Southern California, the San Diego City Council took action. Now, bear in mind, the repeal of the vaccine mandate does not take place immediately. With that being said, the mandate will be repealed March 8th.  I suppose the question now is, what other cities or regions follow San Diego’s lead? For additional information:   https://www.sandiegouniontribune.com/news/politics/story/2023-01-24/san-diego-repeals-controversial-covid-19-vaccine-mandate-citing-drop-in-cases-hospitalizations
Post a Comment
Read more