Chicago Minimum Wage Set to Increase July 1

Starting July 1, Chicago’s minimum wage will be US$16.60, and the minimum wage for subsidized youth employment programs will be $16.50.

“Chicago is the most pro-worker city in the country, and our labor laws demonstrate our commitment to treating working people with dignity and fairness,” said Chicago Mayor Brandon Johnson. “I am proud to see the minimum wage increase and additional protections for workers go into effect this year. Chicago’s workers and their families are the backbone of our city, and they deserve to be paid fairly and valued. These are essential steps to build safe, affordable, and thriving communities.”

Every July 1, Chicago’s minimum wage increases per the Minimum Wage Ordinance. The minimum wage increases annually according to changes to the Consumer Price Index or 2.5%, whichever is lower.

Under the One Fair Wage Ordinance, the wages of tipped workers such as restaurant servers, bartenders, bussers and runners who earn a subminimum wage of $12.62 per hour will increase by 8% per year until it reaches parity with Chicago’s standard hourly minimum wage on July 1, 2028.

Under the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, employees who work at least 80 hours within any 120-day period are guaranteed up to five days of paid leave and five days of paid sick leave.

Additionally, on July 1, the Fair Workweek Ordinance will include updated compensation metrics. Employees will be covered by the ordinance if they work in one of seven “covered” industries (building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services), earn less than or equal to $32.60/hour or $62,561.90/year, and their employer has at least 100 employees globally (250 employees and 30 locations if operating a restaurant). The Fair Workweek Ordinance requires certain employers to provide workers with predictable work schedules and compensation for changes.