At the beginning of 2023, Illinois increased the state minimum wage to $13.00 per hour. The City of Chicago’s minimum wage already exceeded the state minimum wage, and on July 1, 2023, the City further increased its minimum wage.
Chicago’s Minimum Wage as of July 1, 2023
The increases for Chicago are based on the size of the employer.
- Large Businesses (with 21 or more employees) will see an increase to $15.80 per hour for non-tipped employees and $9.48 per hour for tipped employees
- Small Businesses (with 4 to 20 employees) will see an increase to $15.00 per hour for non-tipped employees and $9.00 per hour for tipped employees
- Businesses with less than 4 employees, other than those employing domestic workers, will stay constant at $13.00 per hour (the State’s minimum wage)
- Businesses employing domestic workers (no matter the size) will increase the minimum wage to $15.80 per hour
For tipped employees, Chicago businesses must make up the difference between any tips received and the applicable minimum wage for non-tipped employees.
Cook County’s Minimum Wage as of July 1, 2023
In Cook County, the minimum wage has increased to $13.70 per hour for non-tipped employees and $8.00 per hour for tipped employees. Not all municipalities in Cook County are governed by the Minimum Wage Ordinance as some have opted out or, like Chicago, have their own Minimum Wage Ordinance. Employers should check their municipalities’ websites or check with their governing bodies to determine whether their community has opted out of the Minimum Wage Ordinance.
Updated Chicago Fair Workweek Ordinance
The Chicago Fair Workweek Ordinance has been in effect for three years and provides predictive scheduling for certain employees working for covered employers in the city. “Covered” industries include building services, healthcare, hotels, manufacturing, restaurants and retail or warehouse services.
Last July, Chicago lengthened the period for covered employers to provide their covered employees with their workweek schedules to 14 days. This year, the City has updated the ordinance’s compensation metrics. As of July 1, 2023, employees that earn $59,161.50 or less per year or $30.80 or less per hour are considered “covered” if they work for a covered employer. A covered employer must employ at least 100 employees globally (250 employees and 30 locations if operating a restaurant).
Employers are required to post the updated Minimum Wage Public Notice and Fair Workweek Public Notice at their business. They must also provide a notice of the new minimum wage pay rates with the first paycheck employees receive after July 1, 2023. Employers that violate the minimum wage ordinances will be fined $500 to $1000 per day for each offense.