Hiring Server in Chicago: Local Wage Laws and Hiring Checklist

Hiring Server in Chicago: Local Wage Laws and Hiring Checklist: Key Takeaways

As of July 1, 2025, Chicago’s minimum wage is $16.60/hour for non-tipped employees and $12.62/hour for tipped employees.
The tipped minimum wage in Chicago will be phased out by July 1, 2028, increasing by 8% annually starting July 1, 2024.
Employers must follow a comprehensive hiring checklist including wage compliance, Form I-9 verification, training, and labor law adherence.

Hiring servers in Chicago requires careful compliance with dynamic wage laws and a thorough hiring process.

This guide covers local wage laws and the essential steps in the server hiring checklist.

1. Understanding Local Wage Laws for Servers in Chicago

Chicago’s minimum wage laws differ depending on whether employees are tipped or non-tipped.

As of July 1, 2025:

Non-tipped workers must be paid at least $16.60 per hour.
Tipped workers, including servers, have a minimum wage of $12.62 per hour, lower due to anticipated tip income.

However, an important change is underway.

The Chicago City Council approved phasing out the subminimum tipped wage by July 1, 2028.

Starting July 1, 2024, the tipped wage will increase by 8% each year until it equals the standard minimum wage.

This phase-out means employers must plan wage budgets accordingly and anticipate paying a full minimum wage rate to tipped servers by 2028.

For broader context, review this minimum wage for restaurant servers resource.

2. Key Requirements in the Server Hiring Checklist for Chicago

To hire servers successfully and legally in Chicago, employers need to follow a detailed hiring checklist that ensures compliance with wage laws and operational readiness.

Job Description and Wage Compliance

Create a clear job description outlining required responsibilities, skills, and expectations.

Verify that offered wages meet or exceed Chicago’s applicable minimum wage rates for tipped or non-tipped servers.

Employment Eligibility and Background Checks

Complete Form I-9 for each new hire to verify employment authorization in the U.S.

Conduct background checks subject to Illinois state laws and policies to ensure suitability.

Employee Handbook and Training

Provide servers with an employee handbook containing policies on workplace conduct, dress code, grievance procedures, and safety protocols.

Offer onboarding training covering service standards, safety rules, and operation of point-of-sale systems.

For consistent onboarding, use this server training manual template.

Tax Documents and Labor Law Compliance

Collect W-4 tax withholding forms to document federal income tax settings.

Ensure scheduling follows Illinois labor laws about working hours, breaks, and overtime pay.

Maintain OSHA health and safety compliance to protect employees and reduce liability risks.

Record-Keeping and Operational Logistics

Keep accurate records of server work hours, wages paid, and tip income.

Monitor wage payments regularly to prevent underpayment or wage disputes.

To manage tips fairly and transparently, try this tip pooling spreadsheet template.

3. Planning for the Future of Tipped Minimum Wages in Chicago

The gradual elimination of the tipped minimum wage means restaurant owners and employers must prepare for increased labor costs.

Effective wage planning and budgeting are critical to stay compliant as the tipped wage increments annually by 8%, phasing out in 2028.

This transition impacts payroll systems, staffing budgets, and pricing strategies.

When recruiting, learn how to post jobs for tipped employees.

4. Best Practices for Successful Server Hiring in Chicago

Successful server recruitment goes beyond legal compliance; fostering a positive working environment benefits employee retention and customer satisfaction.

Develop thorough job postings that clearly set expectations.
Ensure timely and transparent communication about wages and benefits.
Provide regular training to maintain high service standards.
Implement efficient scheduling practices that respect labor laws and employee needs.

When interviewing candidates, use these server interview questions to structure your process.

5. Useful Official Resources for Chicago Employers

Employers can consult these official sources to stay updated with wage laws and best hiring practices:

Hiring Server in Chicago: Local Wage Laws and Hiring Checklist: Conclusion

Hiring servers in Chicago demands attention to evolving wage standards and a comprehensive hiring process.

By understanding the current minimum wage rates, preparing for the elimination of the tipped wage, and following a structured hiring checklist, employers can maintain compliance while creating a positive workplace.

Leveraging official resources and adopting best practices ensures a smooth hiring experience that benefits both employees and restaurants.

If you also hire front-of-house roles, see the waitress job description for parallel duties.

For budgeting and pay bands, check the server salary data.

01. What is the minimum wage for tipped servers in Chicago?

As of July 1, 2025, the minimum wage for tipped employees like servers in Chicago is $12.62 per hour, but this will increase annually until the tipped wage is phased out by 2028.

02. When will Chicago phase out the tipped minimum wage?

Chicago plans to phase out the tipped minimum wage by July 1, 2028, with an 8% increase each year starting July 1, 2024.

03. What key requirements are included in the server hiring checklist?

Key requirements include job description clarity, wage compliance, Form I-9 completion, background checks, employee handbook provisions, training, tax documents collection, labor law adherence, and accurate record-keeping.

04. How should employers prepare for the elimination of tipped wages?

Employers should plan wage budgets, update payroll systems, adjust staffing costs, and prepare pricing strategies to accommodate the full minimum wage for tipped servers starting 2028.

05. Where can employers find official resources on Chicago wage laws?

Employers can visit the City of Chicago’s official minimum wage page, Cook County’s wage ordinances, and the U.S. Department of Labor’s Wage and Hour Division website for updated information.