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“The Fair Labor Standards Act (FLSA) sets the minimum base wage at $2.13 per hour,…”
tells me all I need to know about this story
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.
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.