This report consists of two chapters addressing potential reforms for tipped minimum wage in the City of Chicago. The Chicago Department of Business Affairs and Consumer Protection sought the assistance of the University of Illinois and the University of Chicago in conducting a study required by the Chicago City Council that examines the economic impact of tipped wages and the effectiveness of current enforcement in Chicago.
The first chapter, by Alison Dickson and Augustus Wood, analyzes collected survey responses of tipped restaurant and bar employees working in Chicago in an effort to identify employment violations and financial hardships experienced by workers. The second chapter, by Matthew Notowidigdo and Jeremy Mopsick, focuses on recent minimum wage reforms from cities across the country with special attention on tipped workers and minimum wage noncompliance in order to draw lessons for potential minimum wage reform in Chicago.
Read full report here.