CHICAGO — Minimum wage workers in Chicago are set to receive a raise starting July 1, as the city implements a series of new labor protections aimed at enhancing pay equity and job stability across key industries.
According to city officials, the standard minimum wage will increase to $16.60 per hour, while youth in subsidized employment programs will receive $16.50 per hour. This move is part of ongoing efforts under Chicago’s One Fair Wage Ordinance, which aims to eliminate subminimum wages for tipped workers by 2028.
What’s Changing for Tipped Workers?
Tipped employees—including servers, bartenders, bussers, and food runners—currently make $12.62 per hour, but will now see an 8% annual increase in their base pay. By July 1, 2028, their earnings will match the city’s full hourly minimum wage.
This change, phased over multiple years, is intended to ensure wage parity regardless of tipping and to reduce income instability among hospitality workers.
New Paid Leave and Sick Time Benefits
Also taking effect on July 1 is the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance. Here’s what workers need to know:
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Employees working at least 80 hours in any 120-day period are eligible.
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Workers will be granted:
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5 days of paid leave, usable for any reason.
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5 days of paid sick leave for health-related matters or safety needs.
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Up to 16 hours of paid leave and 80 hours of sick leave can be rolled over annually.
This new structure provides increased flexibility for employees while aligning with public health and family responsibilities.
Fair Workweek Ordinance Updates
The city is also updating its Fair Workweek Ordinance, which applies to businesses in seven key industries:
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Building services
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Healthcare
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Hotel
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Manufacturing
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Restaurant
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Retail
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Warehouse services
Covered employees must earn $32.60 per hour or less, or $62,561.90 per year or less, and work for employers with at least 100 employees globally. These workers are now entitled to:
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Predictable work schedules
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Compensation for last-minute schedule changes
This aims to provide financial and planning stability, especially for hourly workers balancing multiple jobs or family responsibilities.
City Support and Worker Outreach
Mayor Brandon Johnson welcomed the changes, stating:
“Chicago is the most pro-worker city in the country. I am proud to see the minimum wage increase and additional protections for workers go into effect this year. These are essential steps to build safe, affordable, and thriving communities.”
To educate businesses and workers, the city is hosting a series of free webinars:
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June 10 at 10 a.m.
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June 12 at 10 a.m.
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June 24 at 2 p.m.
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June 26 at 2 p.m.
More info is available at chicago.gov/BACPwebinars and chicago.gov/LaborStandards.
Do you support Chicago’s efforts to raise wages and expand worker protections? Will these changes impact your job or business? Share your thoughts in the comments below.
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