Amendment of Municipal Code Chapter 6-105 modifying timelines for employer allowance minimums in hourly wage occupations receiving gratuities

• Record number: SO2026-0024043
• Type: Ordinance; category: Municipal Code Amendments
• Status: Final
• Sponsor: Burnett, Walter R.
• Committee: Committee on Workforce Development
• Introduced: Mar 18, 2026
• Final action: May 20, 2026
• Official record: Office of the City Clerk

Roll call: Passed May 20, 2026

49 yea, 1 nay. This was a divided vote. On motion of Alderperson Rodriguez, and unsuccessful motion to reconsider by Alderperson Mitchell, the matter was Passed. Voted at the City Council meeting of May 20, 2026.

Nay (1): Jason C. Ervin (28)

Yea (46): Daniel La Spata (1), Brian Hopkins (2), Pat Dowell (3), Lamont J. Robinson (4), Desmon C. Yancy (5), William E. Hall (6), Gregory I. Mitchell (7), Michelle A. Harris (8), Anthony Beale (9), Peter Chico (10), Nicole T. Lee (11), Julia M. Ramirez (12), Marty Quinn (13), Raymond A. Lopez (15), Stephanie D. Coleman (16), David H. Moore (17), Derrick G. Curtis (18), Matthew J. O'Shea (19), Jeanette B. Taylor (20), Ronnie L. Mosley (21), Michael D. Rodriguez (22), Silvana Tabares (23), Monique L. Scott (24), Jessica L. Fuentes (26), Walter R. Burnett (27), Chris Taliaferro (29), Ruth Cruz (30), Felix Cardona Jr. (31), Scott Waguespack (32), William Conway (34), Anthony J. Quezada (35), Gilbert Villegas (36), Emma Mitts (37), Nicholas Sposato (38), Samantha Nugent (39), Andre Vasquez Jr. (40), Anthony V. Napolitano (41), Brendan Reilly (42), Timothy R. Knudsen (43), Bennett R. Lawson (44), James M. Gardiner (45), Angela Clay (46), Matthew J. Martin (47), Leni Manaa-Hoppenworth (48), Maria E. Hadden (49), Debra L. Silverstein (50)

Former members who voted: Jeylu B. Gutierrez (Yea), Byron Sigcho-Lopez (Yea), Rossana Rodriguez Sanchez (Yea)

Plain-language summary

Written by AI (@cf/openai/gpt-oss-120b) from the ordinance text only: SO2026-0024043 Substitute Ordinance.pdf. AI can make mistakes; the official document always wins.

The city changed the rules for how much extra pay employers can add to the hourly wage for workers who normally get tips. The allowed percentage of the minimum wage will drop over time, eventually ending for larger employers. Smaller employers will keep a smaller tip allowance for a longer period before it also ends.

• The tip allowance starts at up to 40% of the minimum wage and decreases each year through 2033.
• Large employers (21+ workers) lose the tip allowance entirely by July 1, 2028.
• Smaller employers (4-20 workers) keep a reduced tip allowance that phases out by July 1, 2033.
• Specific percentages are set for each time period, ranging from 40% down to 0%.
• The ordinance takes effect immediately after it is passed and published.

Who: Employers and their covered employees in hourly jobs where tips are customary are affected.

Where: Chicago

Timeline

• Mar 18, 2026: Referred, City Council
• May 12, 2026: Substituted, Committee on Workforce Development
• May 12, 2026: Recommended to Pass, Committee on Workforce Development
• May 20, 2026: Passed, City Council

Documents

• w27 - o24043.pdf (Legislation)
• SO2026-0024043 Substitute Ordinance.pdf (Legislation)
• SO2026-0024043 CL.pdf (Committee Letter)