Chicago, Illinois, will begin phasing out its tipped minimum wage and tip credit on July 1, 2024, under an ordinance passed by the city council on Oct. 6.
The tip credit, which is currently 40% of the local minimum wage, will lower to 32% on July 1, 2024; 24% on July 1, 2025; 16% on July 1, 2026; and 8% on July 1, 2027. Effective July 1, 2028, the tip credit will be eliminated, and employers will have to pay tipped employees at least the applicable minimum wage rate, under the ordinance.
Employers that fail to properly pay tipped ...
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