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The city of Chicago confirmed a minimum wage increase that will take effect on July 1, when the wage floor will rise from $16.20 to $17.05 per hour. The measure adds to a trend advancing in several U.S. cities, where local authorities are adjusting minimum wages in response to inflation’s impact on workers’ purchasing power.
The decision was backed by Mayor Brandon Johnson, who highlighted the city’s commitment to labor rights. The increase applies to workers in general, although employees who receive tips will continue earning $12.96 per hour —a rate that will not be reviewed until July 1, 2028.
Who will earn more with the new minimum wage?
The increase benefits Chicago workers who do not receive tips as part of their compensation. Starting July 1, any employee in that category will be entitled to the new $17.05 per hour floor.
The package of measures also expands the current labor protections. Employees who work at least 80 hours within a 120-day period will be entitled to up to five days of paid leave and five days of paid sick leave.
What other labor changes take effect starting in July?
In addition to the wage increase, Chicago is expanding coverage of the Fair Workweek Ordinance (Fair Workweek Ordinance), which requires certain employers to offer predictable schedules and financially compensate any last-minute scheduling changes.
Which employers does it apply to?
The rule applies to companies with at least 100 employees worldwide and restaurant operators with 250 workers and 30 locations or more. The covered sectors include:
- Building services
- Health care
- Hospitality
- Manufacturing
- Restaurants
- Retail
- Warehousing and logistics services
To qualify for coverage, the employee must earn $33.85 per hour or less, or receive an annual salary of $64,945.55 or less. Starting July 1, workers will also be able to file legal action if they believe their rights were violated under the Paid Leave and Sick Leave Ordinance.