OP-ED: Raising Wages and Raising Equity: What the End of Subminimum Wage Means for Black Chicago

By Toure Muhammad

Mayor Brandon Johnson’s recent move to eliminate the subminimum wage for tipped workers and gradually bring tipped wage earners to full minimum wage by 2028 marks a powerful shift—with profound meaning for Black-owned businesses and the Black workforce in Chicago. While critics caution of restaurant closures and job losses, the truth is that this policy speaks directly to equity and empowerment in communities too often left behind.

Chicago’s phased approach—boosting tipped wages by roughly 8 percent annually, from $11.02 to $12.62 this July—clearly challenges a system with roots traceable back to slavery. That historical legacy is no accident. Today, Black and brown workers remain disproportionately represented in tipped service sectors—restaurants, salons, hospitality—industries that routinely mask poverty with gratuities. By raising the floor, Mayor Johnson’s ordinance affirms the dignity of labor and rightly centers fairness in the economic conversation.

Critics—led by the Illinois Restaurant Association—point to job losses: a reported 5,200 restaurant jobs lost in Chicago between July and December 2024. More than 100 local eateries closed during that span, according to industry data. Yet those numbers obscure nuance. New retail food licenses are up—856 since July 2024—and cancellations have shrunk by half. This suggests a dynamic industry adjusting, not abandoning ship.

But what of Black-owned restaurants, often undercapitalized and serving our neighborhoods? They face tighter margins, limited access to capital, and competition in gentrifying corridors. For these owners, the ordinance is both blessing and challenge. Ending tip subminimum means their employees—servers, bartenders—earn consistent, livable wages. Reduced turnover, decreased staff crack under living costs, and regained workplace fairness may follow. But the transition is daunting—higher payroll costs may squeeze slim revenue on Weeknight Specials or Sunday brunches, forcing smart strategies: menu adjustments, community fundraising, or sliding-scale pricing.

This is precisely why we launched the Black Chicago Eats Foundation—to support the sustainability of Black-owned food businesses in the face of shifting economic tides. Our mission is to empower restaurateurs and food entrepreneurs through education, financial literacy, marketing assistance, and funding opportunities. We recognized that policy alone is not enough. Black businesses must have access to the tools and capital that have too often been denied to us historically.

For Black service workers, many of whom hold these jobs out of necessity rather than choice, guaranteed minimums rewrite their story. No more relying on unpredictable tips in underfunded zones or dealing with wage theft—an issue One Fair Wage highlights when noting workers often don’t know when their tips aren’t counted toward the wage baseline. The policy uproots a mechanic of vulnerability, uplifting workers from survival to stability.

Yet success depends on support. City Hall must pair wage reform with targeted assistance: low-interest micro-loans for Black restaurateurs, grants for workforce training, and outreach to educate both workers and owners on their rights and opportunities. Keeping small neighborhood gems alive isn’t just economic—it’s cultural preservation.

If history has taught us anything, it’s that systemic change requires more than just laws—it needs community infrastructure. Chicago’s path ahead should include community reinvestment, mentorship programs led by established Black hospitality leaders, and an equitable licensing process so new generations of entrepreneurs can thrive.

Mayor Johnson is right: this ordinance strengthens the foundation under Chicago’s Black workforce and business ecosystem. But its promise will only be realized when the city commits to supporting the very people it most intends to uplift. Raising wages must come with raising chances—for Black-owned businesses and workers alike—to build equity that lasts beyond the final tip.