Economic crisis facing Illinois tipped workers

This crisis can have lasting consequences on Illinois' broader economy. Restaurants are facing instability and staffing shortages. Advocates call for lawmakers to take immediate action, including raising the minimum wage for tipped workers and eliminating taxes on tips.

By Craig Ondevilla April 5, 2025 10:00 am

restaurant waiter waitress — Metro ServicesMetro Creative ConnectionWaitress

CHICAGO, IL (Chambana Today) – A new report revealed an economic crisis facing Illinois tipped workers.

Data, including federal labor statistics, payroll data from ADP and Toast, and firsthand accounts from Illinois workers and employers, show that tipped workers are seeing their wages and financial stability collapse.

Key findings include:

Tipping rates have dropped to a six-year low.
The subminimum wage for tipped workers remains at just $9 an hour.
Average annual earnings, including tips, are just $16,733.
Cost of living increases are forcing workers out of the industry and even out of the state.

“This report paints a bleak picture for Illinois workers and small businesses alike,” said Saru Jayaraman, President of One Fair Wage and Director of the Food Labor Research Center at UC Berkeley. “Tipped workers are being pushed out of the industry and into poverty, all while the restaurant sector struggles with retention and stability.”

This crisis can have lasting consequences on Illinois’ broader economy. Restaurants are facing instability and staffing shortages. Advocates call for lawmakers to take immediate action, including raising the minimum wage for tipped workers and eliminating taxes on tips.