Chicago Minimum Wage Set to Increase: What You Need to Know

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CHICAGO – A new minimum wage increase is set to take effect in Chicago starting next month, accompanied by updated provisions in the Fair Workweek Ordinance, according to an announcement made by Mayor Brandon Johnson’s office on Tuesday.

Beginning July 1, Chicago’s hourly minimum wage will rise from $15.40 to $15.80 for employers with 21 or more employees. For employers with four to 20 employees, the minimum wage will increase from $14.50 to $15. Furthermore, tipped employees working for large businesses will see their hourly minimum wage increase from $9.24 to $9.48, while those employed by smaller businesses will witness an increase from $8.70 to $9.

This year’s minimum wage adjustment represents the final step of a series of incremental increases, ultimately ensuring that small business employees earn at least $15 per hour.

In addition to the minimum wage changes, the city’s Fair Workweek Ordinance will introduce updated compensation metrics also beginning on July 1. The ordinance covers employees in seven specific industries, including building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services. To be eligible, workers must earn less than or equal to $30.80 per hour or $59,161.50 per year, while their employers must have at least 100 employees worldwide.

Under the ordinance, certain employers are required to provide workers with predictable work schedules and compensation for any schedule changes, as stated in a press release from Mayor Johnson’s office.

The minimum wage increase in Chicago will align with a similar increase taking place in the Cook County suburbs. Non-tipped employees in Cook County will see their hourly minimum wage rise from $13.35 to $13.70, while tipped employees will experience an increase from $7.40 to $8.

To be covered by the Cook County ordinance, employees must have worked for an employer in the county for at least two hours in a two-week period. The employer must have four or more employees (or be a domestic worker) and maintain a business facility in Cook County or possess a business license issued by Cook County.

The implementation of these changes aims to ensure fair compensation and work conditions for employees in Chicago and its surrounding areas.

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