Commentary: Chicago's tipped wage hikes are failing workers. Don’t bring them statewide.
Commentary: Chicago's tipped wage hikes are failing workers. Don’t bring them statewide.
- May 12, 2025
- David Neumark, economics, Crain’s Chicago Business, May 12, 2025 (Commentary)
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When restaurants raise prices or add service charges, customers feel the pinch and choose to dine out less frequently. This hurts both operators and their employees. When tipped wage rates are increased, one Cornell University researcher found, tip percentages left by customers fall. As a result, University of California-Irvine economists found, tipped workers’ earnings decline.
For the full story, please visit https://www.chicagobusiness.com/elevate/hiking-tipped-wages-illinois-would-be-mistake-opinion.
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