Chicago began phasing out its lower minimum wage for tipped workers under a 2023 ordinance. After a fight over stopping the phaseout, the City Council approved a compromise in May 2026 that freezes the tipped wage at 76% of the ordinary minimum wage for two years at larger establishments and longer at smaller ones before the phaseout resumes. Restaurant owners cite rising labor and operating costs, while worker advocates argue that tips should supplement rather than substitute for a full base wage. The compromise leaves the long-term policy intact but reopens the question of pace. A phaseout that closes restaurants helps nobody, but workers also should not wait indefinitely for a wage policy the city already decided to change.