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Chicago Prepares to Raise Tipped Minimum to $12.62 Under One Fair Wage Law

The scheduled July increase marks the second step of a five-year phaseout drawing criticism from hospitality groups citing economic strain.

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Cook County Commissioner Tara Stamps speaks alongside other elected officials at a One Fair Wage rally at the TNT Rooftop Restaurant in Chicago, June 23, 2025. (Antonio Perez/Chicago Tribune)
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Overview

  • On July 1 tipped workers’ hourly wage will increase from $11.02 to $12.62, while Chicago’s full minimum wage rises to $16.60 under the One Fair Wage schedule.
  • Mayor Brandon Johnson said he remains “crystal clear” in his commitment to phase out the subminimum wage and bring tipped pay to parity by 2028.
  • The Illinois Restaurant Association reported more than 100 closures since 2024 and urged City Council to pause the scheduled raises.
  • Ald. Bennett Lawson’s motion to overturn the pay bumps has been delayed by Johnson allies, and Ald. Michael Rodriguez pledged to oppose any repeal effort.
  • One Fair Wage data shows Chicago tipped employees have seen a 49 percent income increase since 2021, the largest gain in the country.