On Monday, the minimum wage in Chicago will increase to $16.20, which will result in a pay increase for many employees.
The office of Mayor Brandon Johnson has announced that on July 1st, there would be a hike in the minimum wage, the introduction of the Paid Leave and Paid Sick and Safe Leave Ordinance, and a “scheduled enhancement” of the Fair Workweek Ordinance standards.
The hourly minimum wage in Chicago will rise from $15.80 to $16.20 for companies with 21 or more workers, and from $15 to $16.20 for companies with 20 or less workers. This will eliminate the pay gap that existed between large and small enterprises.
According to Johnson’s office, the hourly minimum wage has increased annually since rising to $15 in 2021 in accordance with changes in the Consumer Price Index or at a rate of 2.5%, whichever is lower.
Furthermore, youth programs will get subsidies for the hourly minimum wage, with a $15 minimum pay for sponsored transitional job programs.
The tip wage credit for tipped workers is being phased out over a five-year period as part of the One Fair Wage ordinance.
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The hourly minimum salary of $11.02 for tipped workers, which includes bussers, servers, and bartenders, will climb by 8% annually until July 1, 2028, when it will match the city’s standard minimum wage.
Employees must also make less than or equal to $31.85 per hour or $61,149.35 annually, and they must work for a firm with at least 100 employees worldwide.
If running a restaurant, 30 locations and 250 employees are required.
According to the regulation, some firms must give their employees “predictable work schedules and compensation for changes.”
July 1st will also see the implementation of the Chicago Paid Leave and Paid Sick and Safe Leave Act, which was first passed in November 2023.
All Chicago employees are given up to five days of paid leave and five days of paid sick leave if they work at least 80 hours in a 120-day period.
