Legal changes often take effect at the beginning of a calendar year, but modifications can also be seen on July 1st. This summer, there have been several updates to wage and leave laws in Chicago that both employers and employees should be aware of.
Chicago Minimum Wage
Chicago’s minimum wage generally rises every July in the city and is determined by the city’s Minimum Wage Ordinance. As of July 1st, the minimum wage increased from $16.20 to $16.60 per hour for employers with 4 or more workers. Tipped workers, who were previously making $11.02 per hour, must now make a minimum of $12.62 per hour. As previously, employers remain responsible for making up the difference if a tipped worker’s wages plus tips do not equal the full minimum wage.
There are separate minimum wages for youth workers, both tipped and untipped. More information on Chicago's minimum wage requirements can be found here.
Cook County Minimum Wage
Cook County’s minimum wage also rises in July and is governed by a Minimum Wage Ordinance. The county’s minimum wage has increased from $14.05 to $15 per hour. Tipped workers’ wages increased from $8.40 to $9. More information on Cook County's minimum wage requirements can be found here.
Although the City of Chicago is located within Cook County, the county’s regulations do not apply to the city, as it has its own regulations (see above).
Chicago Paid Leave Changes
Chicago’s paid leave law contains provisions that have progressively introduced obligations for employers. Previously, Chicago businesses that have between 51 and 100 employees were required to pay out any unused paid leave upon separation, but only up to 16 hours. As of July 1st, these employers are now required to pay out up to the maximum of unused paid leave upon separation, i.e., up to 56 hours.
Further, as of July 1st workers can file civil suits against their employers for violations of Chicago’s paid leave law. They must first, however, allow 16 days for an employer to correct any issues that they report. The requirement for this 16-day “cure period” will expire after June 30, 2026. At that point, workers will be able to immediately file a lawsuit without providing prior notice of a violation.
More information about Chicago’s paid leave and sick leave provisions can be found here.
Chicago Fair Workweek Changes
Chicago’s Fair Workweek Ordinance requires predictable work schedules and compensation for scheduling changes in certain industries and by certain employers. If the necessary qualifications are met, the ordinance obligates employers to afford employees the following:
- Advance notice of work schedule
- Right to decline previously unscheduled hours
- 1 hour of “predictability pay” for any shift change within 14 days
- A right to rest by declining work hours occurring less than 10 hours after the end of the previous day’s shift
For an employee to be covered, three conditions must be met. First, their employer must have a minimum of 100 employees globally (or 250 employees globally and 30 locations for a restaurant). Second, the industry they are working in must be among one of the following seven:
- Building services
- Healthcare
- Hotels
- Manufacturing
- Restaurants
- Retail
- Warehouse services
Third, the employee must earn below certain compensation thresholds. Previously, the ordinance applied to workers who earned $26 per hour or less or who earned $50,000 annually or less. As of July 1st, however, it now covers employees who earn $32.60 per hour or less or $62,561.90 annually or less.
More information about Chicago’s Fair Workweek Ordinance can be found here. Chicago-based employers should consult the “public notices” page of Chicago’s Department of Business Affairs and Consumer Protection to learn which legal notices need to be posted in their workplaces.