Chicago Salary Guide for Waitress: Average Pay, Tips and Benefits

Chicago Salary Guide for Waitress: Key Takeaways

• Chicago is phasing out the tip credit, requiring full minimum wage payment to waitresses by 2028.
• As of July 2025, waitresses earn $12.00 per hour for large employers plus tips, totaling about $17.32 hourly on average.
• Tips can vary widely, with upscale venues offering $30-$70 per hour versus $5-$10 in casual dining.

This article outlines the latest wage rules, average pay, tip earnings, and benefits for waitresses working in Chicago.

It covers important changes under the One Fair Wage ordinance and how these affect overall waitress compensation.

For employers looking to understand how these changes affect hiring and payroll, see how to hire high performers for hospitality businesses.

1. Legislative Changes Impacting Chicago Waitress Salaries

Until recently, Chicago allowed tipped employees such as waitresses to be paid a lower base wage supplemented by tips through a tip credit system.

The One Fair Wage ordinance, enacted on October 6, 2023, started a five-year phase-out of this tip credit. This means employers must gradually increase base wages so that by July 1, 2028, waitresses receive the full minimum wage without relying on tips to meet minimum pay standards.

The tip credit reduction schedule announced is:

• July 1, 2024: Tip credit reduced to 32% of minimum wage.
• July 1, 2025: Reduced further to 24%.
• July 1, 2026: Reduced to 16%.
• July 1, 2027: Reduced to 8%.
• July 1, 2028: Tip credit fully eliminated.

As a result, as of July 1, 2025, the standard minimum wage stands at $15.80 per hour for employers with 21 or more employees, and $15.00 for smaller businesses,

The tipped minimum wages are lowered accordingly: $12.00 for large employers and $11.40 for smaller ones due to the 24% tip credit still allowed at this stage.

Employers should also review guidance on multi-state payroll compliance to align with new wage rules across locations.

2. Average Pay and Tip Earnings for Waitresses in Chicago

The baseline hourly wage for a waitress as of mid-2025 averages about $12.00 at larger employers, plus tips. Overall, server earnings including tips average approximately $17.32 per hour.

Tips remain a crucial income component despite the wage increases. Reported average tips can reach $200 per day, though this fluctuates based on workplace and clientele.

Waitresses in casual dining venues typically earn tips adding $5 to $10 per hour extra, while those in upscale or high-demand areas can see tips ranging from $30 to $70 per hour depending on shift timing and customer generosity.

Factors Affecting Waitress Earnings in Chicago

• Experience and skill level generally increase earning potential.
• Restaurant type: upscale restaurants offer substantially higher tips.
• Location within the city influences foot traffic and tipping patterns.
• Shift timing can also affect tip volume, with peak hours and weekends usually yielding more tips.

Waitresses and servers seeking to enhance their skills can benefit from resources like the server training manual template.

3. Benefits Offered to Waitresses in Chicago Restaurants

Beyond base wages and tips, many Chicago restaurants provide additional benefits to attract and retain waitstaff.

Typical benefits include health insurance coverage, paid vacation and sick leave, and flexible scheduling options.

Some establishments also offer discounts on meals or merchandise, increasing the overall compensation value for their waitresses.

The extent of benefits often depends on factors such as restaurant size, ownership policies, and operating budgets.

Restaurant owners interested in boosting employee engagement might explore strategies for restaurant incentives for employees.

4. How Chicago Waitress Compensation Is Evolving

Legislative reforms under the One Fair Wage ordinance are reshaping the compensation landscape for waitresses.

The gradual increase of base wages aims to provide more predictable, stable income to tipped workers without diminishing the importance of tips as supplementary earnings.

This shift helps reduce income volatility, promote fairness, and align Chicago with cities that have already eliminated the tip credit system.

Employers must adjust payroll systems accordingly to ensure compliance with the new phased wage requirements.

For a comprehensive understanding of waitress duties and compensation, see the waitress job description and Chicago waitress salary guide.

5. Practical Advice for Waitresses and Employers in Chicago

Waitresses should track hourly earnings and tip income to understand how total compensation evolves with the tip credit phase-out.

Knowledge of minimum wage schedules helps ensure workers receive lawful wages and identify any shortfalls.

Employers need to monitor workforce size because the minimum wage differs slightly depending on employer size, impacting wage calculations.

Clear communication about pay and tip policies can help reduce misunderstandings and improve workplace satisfaction.

Employers looking to recruit effectively can learn from the top tips for hiring servers or waiters to build a great team.

6. Additional Resources for Chicago Waitresses

For up-to-date details on wage laws and rights, the following official resources are invaluable:

• U.S. Department of Labor – Fair Labor Standards Act (FLSA)
• City of Chicago – Minimum Wage Information
• Illinois Department of Labor

For waitresses preparing for job interviews, reviewing common waitress interview questions can be beneficial.

Chicago Salary Guide for Waitress: Conclusion

Chicago’s waitress compensation is undergoing important reforms that provide higher, more stable base wages through the elimination of the tip credit by 2028.

Although tips continue to play a significant role in total earnings, legislative changes will ensure waitresses earn at least the full minimum wage from their employers.

Employers offering additional benefits like health insurance and paid time off further enhance the attractiveness of waitress positions in the city.

Staying informed about evolving wage laws and understanding pay structures can help both waitresses and employers navigate this transition smoothly and fairly.