Chicago Minimum Wage To Increase July 1, Along With New Rules For Paid Time Off

Marisol Vega
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Chicago Minimum Wage To Increase July 1, Along With New Rules For Paid Time Off

CHICAGO — A wave of new labor protections will roll out across the city starting July 1, as Chicago raises its minimum wage and expands rules around paid leave and worker scheduling. The changes aim to strengthen support for low- and middle-income workers across industries citywide.

Minimum Wage Increase Set For July 1

Starting next month, Chicago’s minimum wage will rise to $16.60 per hour. For subsidized youth employment programs, the rate will be set at $16.50.

Tipped workers—such as restaurant servers, bartenders, bussers, and runners—will also see yearly raises under the One Fair Wage Ordinance, which mandates an 8 percent increase each year until the tipped minimum wage equals the city’s standard wage by July 1, 2028.

New Rules For Paid Leave And Sick Time

Under the new Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, workers who work at least 80 hours over any 120-day period will qualify for:

  • Up to 5 days of paid leave, which can be used for any reason

  • Up to 5 days of paid sick leave

  • Carryover of up to 16 hours of unused paid leave

  • Carryover of up to 80 hours of unused sick time into the next 12-month benefit period

These changes aim to provide more flexibility for workers navigating illness, family needs, or other unexpected obligations.

Fair Workweek Ordinance: Predictable Scheduling

The Fair Workweek Ordinance will also update how employers manage scheduling for thousands of workers.

Covered employers must now offer predictable schedules and compensation for late changes if they employ at least 100 workers globally and the employee:

  • Earns less than or equal to $32.60/hour, or

  • Earns less than or equal to $62,561.90/year, and

  • Works in one of seven “covered” industries:

    • Building services

    • Healthcare

    • Hotels

    • Manufacturing

    • Restaurants

    • Retail

    • Warehouse services

Mayor Brandon Johnson Praises Worker Protections

In a public statement, Mayor Brandon Johnson framed the changes as part of the city’s ongoing effort to support working families.

“Chicago is the most pro-worker city in the country, and our labor laws demonstrate our commitment to treating working people with the dignity and fairness that they deserve,” Johnson said.

“These are essential steps to build safe, affordable, and thriving communities.”

Upcoming Webinars For Worker Education

To help workers and employers understand the changes, the city will host informational webinars:

  • June 10 at 10 a.m.

  • June 12 at 10 a.m.

  • June 24 at 2 p.m.

  • June 26 at 2 p.m.

Details and registration are available at Chicago.gov/BACPwebinars.

For more information on local labor laws, visit Chicago.gov/LaborStandards.

Why It Matters

These new policies come as cost-of-living pressures grow and workers across the city demand more predictability and fairness on the job. Chicago’s wage and labor law changes put it among the most progressive cities in the U.S. for worker protections.

Are you a Chicago worker impacted by the new wage or leave laws? How will these changes affect your job or business? Let us know your thoughts in the comments.

Marisol Vega

Marisol Vega

Marisol writes about how city decisions affect everyday people. From housing and schools to city programs, she breaks down the news so it’s easy to understand. Her focus is helping readers know what’s changing and how it matters to them.

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