A new report supports ending subminimum wages in Illinois.

The report, done by One Fair Wage, found financial stability for tipped restaurant workers is coming harder and harder to live off of.

Here's what to know about the report.

One Fair Wage

One Fair Wage is a nonprofit organization with the goal to end subminimum wage, or wages for tipped workers below the state mandated minimum wages, nationally.

One Fair Wage joined SIEU in the state capital to rally to raise the minimum wage for senior healthcare workers. The focus of the rally held on March 18 surrounded minimum wage workers in the senior healthcare industry and Senate Bill 120 , sponsored by State Sen. Celina Villanueva, D-Chicago, to raise the minimum wage for senior healthcare workers from $18 to $20 an hour.

The report released by OFW in April first highlights annual tipping rate drops, average annual earnings made by tipped employees and the impacts of cost of living increases on the dining industry.

Report Methodology

According to OFW, analytics and report information drew on data from Federal Labor Statistics, payroll data from ADP and Toast and firsthand accounts from Illinois workers and employers.

Key findings

The report highlights how tipped workers, the majority of whom are women and people of color, are seeing their wages and financial stability collapse under the weight of an outdated subminimum wage system.

In the state, the subminimum wage for tipped workers in Illinois is still just $9 an hour compared to the $15 minimum for other workers in the state.

Over 198,000 tipped workers go to their jobs on the daily basis in Illinois, for a median income of $16,733 a year, including tips. To put that in perspective, according to the 2025 poverty guidelines, that income is 100% under the federal poverty line for a household of one.

One long term impact of subminimum wage not adjusting with the times is burnout from employees leaving the workforce, and the signs are already visible. Now hiring stamped across doors to restaurants, a demand for servers and shift workers who are increasingly hard to find to fill positions.

Restaurant growth in fair wage states

According to the report, Chicago, which is a fair wage city, research comparing fair-wage states to subminimum-wage states shows that fair-wage states have maintained strong growth rates in the number of restaurant establishments and workers. California, for example, has experienced a 12.9 percent increase in small business restaurants compared to a 5.4 percent increase in small business restaurants in Illinois from January 2020 to February 2022.

The US Bureau of Labor Statistics data shows in the short time Chicago and Washington, D.C. have started raising tipped workers’ wages, the number of positions in restaurants and establishments have remained consistently employed.

Opposition to ending subminimum wage

The Illinois Restaurant Association has announced its opposition to the legislation in Illinois and disagrees that it will increase pay for tipped workers. In a statement from 2024 when a state bill ending subminimum wage was first filed, the association said the bill will do "more harm than good."

"These changes will lead to job cuts, an increase in labor costs, and ultimately force restaurant owners to make difficult decisions that will negatively impact their workers and result in higher prices for customers," IRA said.

A full copy of the report can be found at onefairwage.org .