Quantcast

South Cook News

Friday, November 22, 2024

Higher restaurant wages could stabilize paychecks — and eliminate job opportunities

Wages

Although Chicago is mulling whether to bump the hourly minimum wage for restaurant workers from $6.40 an hour plus tips to the full minimum wage of $13 (and to $15 by 2021), one area activist fears the plan could backfire.

Katie Miller, a District 53 House candidate in 2018, told the South Cook News that a higher minimum wage could wipe out some of the opportunities teenagers have traditionally counted on for spending money.

“I have teenage kids and it's hard for them to get a job — there's not as many jobs out there for them because people have cut off how many people that they hire for all those minimal-skills jobs,” Miller said. “My son does have a job now, but a bunch of his friends couldn’t find jobs.”


Republican Katie Miller, 2018 candidate for Illinois' 53rd District House seat

In Chicago, restaurant owners pay servers $6.40 an hour, plus tips. A Sept. 23 article in The Chicago Tribune mentioned that the latest proposal would require restaurants to pay the city’s current minimum wage of $13 an hour. That figure would climb to $15 over the next two years, instead of the existing 2025 target date. 

Proponents say the increase could help stabilize paycheck amounts. A server quoted in the Tribune said her pay ranged from $200 to $700 per week, depending on whether business was brisk.

But if a $13-an-hour minimum is set and tipping is eliminated, it could end up capping server pay on busy nights. Instead of the $700 upper figure that server mentioned, a 40-hour week at $13 an hour would only pay $520. Even at $15, the maximum weekly pay would be $600 for full-time work.

The idea hinges on whether workers want to sacrifice earning potential for stability. For example, a friend of Miller's who worked at a nearby Joe’s Crab Shack told her that particular location experimented with boosting wages while forbidding the practice of tipping. Two things happened, she said: The server told her she earned less money and patrons faced higher menu prices.

That location, Miller noted, is no longer in business.

“You can see at fast-food places they’ve automated ordering,” Miller said. “A lot of those jobs are just going to go away.”

ORGANIZATIONS IN THIS STORY

!RECEIVE ALERTS

The next time we write about any of these orgs, we’ll email you a link to the story. You may edit your settings or unsubscribe at any time.
Sign-up

DONATE

Help support the Metric Media Foundation's mission to restore community based news.
Donate

MORE NEWS