Chicago Increases its Minimum Wage and Enlarges Scheduling Requirements Effective July 1, 2022

On July 1, most Chicago employers face an increase in the Chicago minimum wage. Chicago’s Minimum Wage Ordinance applies to employers who maintain a business facility within the city or who are required to obtain a business license to operate in the city and to employees who work two hours in the city within a two-week period. The ordinance does not apply to employees under 18 years of age, adult employees in their first 90 days of employment, certain disabled employees or employees working at a business with three or fewer employees.

Updated Wages

Chicago’s minimum wage depends upon the size of the employer.

• Large employers with 21 or more employees will see an increase in the minimum wage to $15.40/hour
• Smaller employers with 4 to 20 employees will need to increase their minimum wage to $14.50/hour
• Chicago employers with less than 4 employees still are not covered by the ordinance but are required instead to follow the state minimum wage guidelines. As of Jan. 1, the Illinois minimum wage is $12/hour

Updated Wages for Tipped Employees

Tipped Chicago employees also will see an increase in their minimum wage based on the size of their employer.

• For large employers with more than 21 employees, the minimum wage will be $9.24/hour
• For smaller employers with 4 to 20 employees, the minimum wage will be $8.70/hour
• The minimum wage to be paid under city contracts or concessionaire agreements will be $16/hour
• Chicago’s domestic workers are treated like employees of large employers. They will see their minimum wage increase to $15.40/hour

Chicago Fair Workweek Ordinance

Also, on July 1, Chicago lengthened the period for covered employers to provide their covered employees with their workweek schedules from 10 days to 14 days. The Chicago Fair Workweek Ordinance provides predictive scheduling for certain employees working for covered employers in the city. Employees that earn $50,000 or less as salaried employees or $26/hour or less as hourly employees are covered if they work for a larger employer in one of seven covered industries.

The ordinance only applies to large businesses in seven covered industries. Employers must employ 100 or more workers globally where at least 50 of those workers spend the majority of their working time in Chicago. For not-for-profit employers, the ordinance only applies if they have 250 or more employees, 50 of whom spend most of their time working in Chicago.

Covered Industries

• Building services
• Healthcare
• Hotels
• Manufacturing
• Restaurants (but they need to employ at least 250 employees)
• Retail and warehouse services

This ordinance has been in effect for two years. As of July 1, covered employers will be required to give their covered employees a longer notice period of 14 days or face predictive pay obligations.

For more information about these changes in the law and to learn more about how these changes impact your business, please reach out to Jeralyn Baran or a member of HMB’s team.