FAQ
One Fair Wage
What is One Fair Wage?
Passed in October 2023, One Fair Wage is a historic policy that will phase out the City of Chicago’s subminimum wage for tipped workers over a five-year period. A direct legacy of slavery, the subminimum wage continues to force millions of tipped workers in Illinois and across the country to struggle with the highest rates of economic instability and sexual harassment of any industry in the country. Predominantly comprised of women of color, youth, and immigrants, tipped workers are more likely to experience wage theft, sexual harassment. Tipped workers are often forced to depend on public benefits to make ends meet. Abolishing the subminimum wage will provide a pathway out of poverty and gender inequity.
Who is eligible for raises through One Fair Wage?
One Fair Wage applies to tipped workers or those who do not receive a full minimum wage but receive tips as part of their wages. The only employees exempt from the wage increase are employees with collective bargaining agreements (CBA) that choose to waive the subminimum wage increase in alignment with Section 6-105-060 of the Municipal Code of Chicago. Workers who will likely be eligible for the raises include workers across various industries, such as servers and bartenders in the hospitality industry, nail technicians and hairstylists in the beauty industry, bellhops, and car wash attendants.
When can tipped workers expect to receive a full minimum wage?
The subminimum wage will be phased out over five years, with increases through July 1, 2028, until tipped workers reach a full minimum wage. The first raise will begin on July 1, 2024. Starting this July, tipped workers will see a raise from $9.48 an hour to $11.02.
Will workers still receive tips?
Tipping is customary and not a legally binding policy. Tips have always been at the customer's discretion, which is why many tipped workers struggle to make ends meet. Some restaurants forego tips and pay their workers a living wage, while others pay their workers a sub-minimum wage.
How do I know if tips are included in my bill?
Restaurants must disclose fees and their purpose before providing service and a bill. They must do so verbally and in written form through signage. Business Affairs and Consumer Protection has provided new rules for vendor fees so that customers know where their money is going. Common fees include a “Surcharge Fee,” collected separately from itemized purchases that go to the establishment, not the workers. A “Service Fee” is a fee collected separately from itemized purchases passed on to employees as part of their wages. Neither surcharge nor service fees are tips, as tips are voluntary for services rendered.
What resources are available for restaurant owners?
Restaurant owners can visit the City of Chicago’s Bussiness Affairs and Consumer Protection (BACP) website to learn more about compliance with One Fair Wage.
What resources are available for workers?
Workers are encouraged to file a report with Business Affairs and Consumer Protection if they are victims of wage theft, workplace discrimination, or other work-related issues with their employer. Workers can file a report at the Office of Labor Standards or call the 35th Ward office for assistance filing a report. Additionally, several community-based organizations provide support for workers, including Know Your Rights trainings, legal assistance, and workplace organizing support.
Arise Chicago Worker Center
Arise Chicago Worker Center is a membership-based community resource for immigrant and U.S.-born workers to learn about their rights and organize fellow workers to improve workplace conditions. Workers experiencing issues at their workplace are encouraged to contact Arise by calling (773) 769 - 6000 or visiting www.arisechicago.org.
Arise has a comprehensive Workers Rights manual available online available here.
The Chicago Hospitality Accountability & Advocacy Database (CHAAD) - Shift Change Chicago
CHAAD and Shift Change Chicago work to support hospitality workers who have experienced workplace discrimination and sexual harassment. They connect workers to mental health counselors and survivor support networks and assist with workplace organizing. You can contact the CHAAD Project and Shift Change Chicago by visiting www.thechaadproject.org.
Where can I file a complaint if I am not my paid full wages?
Tipped workers should “check their check” to ensure they are receiving the new hourly wage. Workers who suspect that they are victims of wage theft, workplace discrimination, or other work-related issues should contact the Chicago Department of Business Affairs and Consumer Protection (BACP) to file a formal complaint and request an investigation. Workers can file a complaint at the Office of Labor Standards or call the 35th Ward office for assistance filing a report.
Paid Leave for Workers in Chicago
What is Paid Leave?
The Chicago City Council passed the Paid Leave ordinance in November 2023. This policy gives eligible workers who work at least 80 hours for an employer within any 120-day period while physically present within the geographic boundaries of Chicago the right to paid leave and paid sick leave. For every 35 hours worked, eligible workers accrue one hour of paid leave AND one hour of paid sick leave. Employees may accrue up to 40 hours of Paid Leave and up to 40 hours of Paid Sick Leave in any 12-month period unless their employer sets a higher limit. The 12- month period starts when workers first start to accrue paid leave and paid sick leave.
Paid leave allows workers to take paid time off and paid sick time off. It allows workers to take time off without losing income or the threat of employer retaliation. For employers, paid leave improves worker retention and reduces turnover costs. Equally important, paid sick leave permits workers to take time off for illnesses and injuries. When workers report to work sick, they often put other employees and patrons at risk. Paid sick leave will protect workers, employers, and clients alike.
What kinds of workers are eligible for paid leave?
Any employee who is not bound to a Collective Bargaining Agreement with their employer and who physically works at a location in the geographic area of the city of Chicago for at least 80 hours within a 120-day period.
When can workers begin to accrue paid sick leave and paid leave?
The new paid sick leave policy for qualified employees began December 31, 2023. Workers are entitled to use sick days 30 days after hire and accrual. Starting July 1, all employers must allow eligible employees to accrue paid leave and paid sick leave.
For more information on paid leave and paid sick leave, please visit the City of Chicago’s Business Affairs and Consumer Protection FAQ.
What resources are available for workers?
Arise Chicago Worker Center
Arise Chicago Worker Center is a membership-based community resource for immigrant and U.S.-born workers to learn about their rights and organize fellow workers to improve workplace conditions. Workers experiencing issues at their workplace are encouraged to contact Arise by calling (773) 769 - 6000 or visiting www.arisechicago.org.
Arise has a comprehensive Workers Rights manual available online available here.