The Chicago City Council overwhelmingly voted to pause the city’s phased elimination of the tip credit.

In a 49-1 vote, the Chicago City Council slowed its phase-out of the tip credit, creating two revised timelines for its complete elimination.

For employers with three to 20 employees, the permitted tip credit is:

–  through June 30, 2030 – 24%

–  from July 1, 2030, through June 30, 2031 – 16%

–  from July 1, 2031, through June 30, 2032 – 12%

–  from July 1, 2032, through June 30, 2033 – 6%

–  from July 1, 2033 – 0%

For employers with more than 20 employees, the permitted tip credit is:

–  through June 30, 2028 – 24%

–  from July 1, 2028, through June 30, 2029 – 16%

–  from July 1, 2029, through June 30, 2030 – 8%

–  from July 1, 2030 – 0%