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That's fairly common. At least in New England.
The way it works is there's the tipped worker minimum wage, and if that + their tips fails to meet the local minimum, the employer is obligated to pay the difference.
So, $2.13/hr for a 4-10 shift is $12.78.
Chicago minimum wage is $15.80/hr. For a 6 hr shift, that's $94.80.
So if the employee didn't get $82.02 in tips that shift, the owner would have to cover that difference.
That is probably roughly what is made in tips on an above average 4 top in Chicago.
Don't get me wrong, industry workers are severely underpaid. If the restaurants didn't feed them most would probably not be able to afford rent.
This change seems like it will just hurt restaurants, not help employees meaningfully, and raise menu prices.
Someone in the industry in Chicago please correct me if I'm wrong about that initial assumption, because that's how it works in Boston, Portland, and a few others in New England.
Edit: lots of downvotes for explaining how it works. Cool platform! Glad to be here.
I'm a bartender of 12 years. Just telling y'all how it fucking works. Christ.
I love in Seattle where it is the same minimum wage for tipped workers as it is for everyone else at $16.50/hr for small employers. They predicted a restaurant Armageddon. Guess what did not happen?
As for prices at restaurants, they are basically the same as any other large city.
They're only obligated if they think they'll get caught not doing it.
The change doesn't outlaw tips. So now they're getting better base pay, plus tips, and the owner is still paying the absolute minimum instead of slave wages. If ANY company can't afford minimum wage they shouldn't be in business. And honestly fuck you for being more concerned about the business than actual people.
It's bullshit. Tips are supposed to be a bonus for good work, not your actual wage.
Yeah agreed. I'm just saying this change doesn't address that very much.
Just because the employer is legally obligated to do something doesn't mean that it often works that way in practice.