Chicago's minimum wage workers can look forward to a pay bump next month, as the city's minimum wage is slated to rise to $16.60 starting July 1. In an announcement made by Mayor Brandon Johnson and the Chicago Department of Business Affairs and Consumer Protection, a suite of labor law updates was unveiled, which included the wage hike. Not all workers will experience the same increase; those in subsidized youth employment programs will see their wages increased to $16.50, as detailed in a statement obtained by NBC Chicago.
Alongside the increase in wages, employees earning tips are set to gradually earn more, too. Currently, tipped workers like servers and bartenders earn a subminimum wage of $12.62 per hour, but under the One Fair Wage Ordinance, they will start to gradually see this rate increase by eight percent annually until it matches the city's standard hourly minimum wage by July 1, 2028. Every year, on July 1, Chicago's minimum wage is adjusted, but changes this year also extend beyond mere wages. New regulations are set to affect paid leave and sick time—employees now can accrue paid leave for any reason, having the right to carry over up to 16 hours between 12-month periods. When it comes to sick leave, employees can accrue an hour of leave for every 35 hours worked, accumulating up to 40 hours in 12 months, and can carry over up to 80 hours between benefit periods. This comprehensive update was shared by ABC 7 Chicago.
The city's Fair Workweek ordinance, which will take effect on July 1 as well, mandates that certain employers must now provide workers with predictable work schedules, along with compensation for schedule changes. This ordinance impacts workers in several industries such as healthcare, retail, and restaurant, among others, and sets new compensation metrics that apply if they meet particular criteria regarding hourly wages or annual salaries, and if their employer has a global headcount of at least 100 employees.
Mayor Johnson underlined the city's commitment to worker welfare, stating, "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." He also emphasized the importance of the upcoming changes, saying, "These are essential steps to build safe, affordable, and thriving communities," in remarks made to ABC 7 Chicago. To further assist in understanding these changes, the city will host a set of webinars on the 10th and 12th of June at 10:00 a.m., as well as on the 24th and 26th at 2:00 p.m. Interested parties are encouraged to visit the city's official website for more information.
