An annual minimum wage increase is expected to take effect in Chicago early next month, alongside updated provisions of the Fair Work Week Ordinance, Mayor Brandon Johnson’s office announced Tuesday.
Chicago’s hourly minimum wage is set to increase from $15.40 to $15.80 for employers with 21 or more employees, with an increase from $14.50 to $15 for employers with 4 to 20 employees.
Additionally, the minimum hourly wage for tipped employees will increase from $9.24 to $9.48 for large business employees, while small business tipped employees will see their minimum wage increase from $8.70 to $9.48. $9.
This year’s increase marks the latest adjustment in an annual minimum wage increase that has resulted in small business employees reaching a minimum wage of $15 an hour.
The city’s Fair Work Week Ordinance will also introduce updated compensation measures beginning July 1.
According to a press release from Johnson’s office, employees covered by the order include anyone who works in one of seven “covered” industries while earning less than or equal to $30.80 an hour or $59,161.50 per year, and the employer has at least 100 employees worldwide.
- building department
- Health care
- Warehouse Services
According to the press release from Johnson’s office, the order requires certain employers to provide workers with “predictable work schedules and compensation for shifts.”
The increase in Chicago mirrors an increase that will apply to Cook County suburbs, with the hourly minimum wage set to rise from $13.35 to $13.70 for untipped employees and from $7.40 to $8 for tipped employees.
Employees are covered by the Cook County ordinance if:
- The employee worked for a Cook County employer for at least 2 hours during a two-week period, and
- The employer has four or more employees (or the employee is a domestic worker) and
- The employer maintains a business facility in Cook County or is issued a business license by Cook County.