A yearly minimum wage increase is set to take effect in Chicago at the start of next month, alongside updated provisions in the Fair Workweek Ordinance, Mayor Brandon Johnson's office announced on 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 four to 20 employees.
Additionally, the hourly minimum wage for tipped employees will increase from $9.24 to $9.48 for employees of large businesses, while tipped employees of smaller businesses will see their minimum wage increase from $8.70 to $9.
This year's increase marks the final adjustment of a yearly incremental minimum wage increase that culminated in small business employees reaching a minimum wage of $15 per hour.
The city's Fair Workweek Ordinance will also introduce updated compensation metrics beginning on July 1.
According to a press release from Johnson's office, employees covered by the ordinance include any individuals who work in one of the seven "covered" industries, while making less than or equal to $30.80 an hour or $59,161.50 a year, and the employer has at least 100 employees globally.
- Building services
- Health care
- Hotels
- Manufacturing
- Restaurants
- Retail
- Warehouse services
According to the press release from Johnson's office, the ordinance requires certain employers to provide workers with "predictable work schedules and compensation for changes."
Local
The increase in Chicago mirrors an increase that will apply to suburbs in Cook County, with the hourly minimum wage set to increase from $13.35 to $13.70 for non-tipped employees and $7.40 to $8 for tipped employees.
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Employees are covered by the Cook County ordinance if:
- The employee has worked for an employer in Cook County for at least 2 hours in any 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.
