A number of workers in Chicago will see a pay boost come Monday when the city's minimum wage rises to $16.20.
According to Mayor Brandon Johnson's office, the minimum wage increase, implementation of the Paid Leave and Paid Sick and Safe Leave Ordinance and a "scheduled enhancement" of the Fair Workweek Ordinance requirements will all take effect on July 1.
Chicago's hourly minimum wage will increase from $15.80 to $16.20 for employers with 21 or more employees and from $15 to $16.20 for employers with 20 or fewer employees, removing the tiered wages for large and small businesses.
Since increasing to $15 in 2021, the hourly minimum wage increases annually according to changes in the Consumer Price Index or at a rate of 2.5%, whichever is lower, according to Johnson's office.
Additionally, the hourly minimum wage will be subsidized for youth programs, with the minimum wage for subsidized transitional employment programs set at $15.
As part of the One Fair Wage ordinance, the tipped wage credit for tipped workers is being phased out over a five-year period.
Wages of tipped workers, such as restaurant servers, bartenders and bussers who currently earn an hourly minimum wage of $11.02 will see a yearly increase of 8% until it reaches parity with the city's standard minimum wage on July 1, 2028.
Additionally, employees must earn less than or equal to $31.85 per hour or less than or equal to $61,149.35 a year and if the employer has at least 100 employees globally.
If operating a restaurant, there must be 250 employees and 30 locations.
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The ordinance requires certain employers to provide workers with "predictable work schedules and compensation for changes."
Additionally, the Chicago Paid Leave and Paid Sick and Safe Leave ordinance, originally passed in November 2023, will also take effect on July 1.
Under the measure, all Chicago workers 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.
