A bill set to be introduced in the General Assembly next week by state Rep. Elisabeth Hernandez, D-Cicero, and supported by the One Fair Wage group, would go a step further and eliminate the tipped wage statewide by Jan. 1, 2025, effectively forcing restaurants across Illinois to pay their workers a higher minimum hourly rate than Chicago restaurants by next year. 

Whether the bill can move through Springfield as written is another matter, but even if the language is changed to provide a longer phaseout period, the legislation would provide more parity between Chicago restaurants and others in the state, potentially alleviating a concern of moderates in the City Council that restaurants in the city would flee for the suburbs. 

That the bill is being introduced by Hernandez could make it a higher priority for state legislators. Hernandez also serves as chair of the Democratic Party of Illinois, which fundraises for party-backed candidates, a position she obtained with the help of Gov. J.B. Pritzker after a protracted interparty battle. 

"Tipped workers in the suburbs and across Illinois should not be paid a sub-minimum wage for doing the same job as workers in Chicago,” Hernandez told Crain’s in a written statement. “This legislation will help level the playing field for workers across the state while also ensuring all businesses can continue to attract employees in this tight labor market.”

Hernandez is also receiving a boost from a surprising source: Cicero Mayor Larry Dominick. Cicero borders Chicago on three sides and could potentially benefit if restaurants in the city moved across the street for Cicero, where their labor costs would be lower. In her statement, Hernandez thanked “the town of Cicero for leading the charge.”

Dominick is apparently more concerned restaurants in Cicero will be starved of local workers, who have a short commute to better-paying jobs in the city.

"Tipped employees deserve fair compensation for their labor no matter where they work,” Dominick said in a written statement. 

“With the city of Chicago moving to phase out its sub-minimum wage, it is imperative that suburbs like Cicero move quickly to ensure our workers keep pace and our businesses can stay competitive. By putting more money into the pockets of restaurant workers in Cicero, we can boost our local economy and attract new residents while also supporting our many vibrant restaurants,” Dominick’s statement said. 

Two previous state bills, HB 5139 and SB 2093, would have provided longer phaseout periods but did not move forward. The House bill sought to eliminate the tipped wage in 2025, but was introduced in January 2023, providing a two-year phaseout. The Senate bill, also introduced in 2023 by then-state Sen. Cristina Pacione-Zayas, who now serves as deputy chief of staff in the Johnson administration, would have eliminated the tipped wage in 2026.

The new bill will likely face similar headwinds, even if it is amended. The state currently has an $8.40 tipped wage, set to jump to $9 next year when the state’s overall minimum wage reaches $15. 

Like in Chicago, if a worker’s hourly rate between the tipped wage and tips does not equal the state’s minimum wage, employers must bridge the gap. Also like Chicago, eliminating the tipped wage would not ban tipping; tips would be on top of the worker’s set wage.

Eliminating that gulf in one year was never on the table for the Chicago legislation. Instead, the initial proposal set a two-year phaseout, which was extended to five years after negotiations with Sam Toia, head of the Illinois Restaurant Association, and to gain the support of moderate members of the City Council. 

Despite the concession, restaurant owners have criticized the city measure, arguing that they already face slim margins and shifting the burden of paying their workers a minimum wage from patrons’ tips to employers will put them out of business.