Chicago is raising its minimum wage to $10.00 per hour on July 1

Starting on July 1, 2015, Chicago’s minimum wage will be $10.00 per hour. This is higher than the state minimum wage which is $8.25 per hour and the federal minimum wage which is $7.25 per hour.

Chicago will raise its minimum wage to $13.00 per hour by 2019. The increases will be phased in gradually, starting with the first increase of $.50 per hour on July 1, 2015. Chicago will increase its minimum wage by $.50 per hour on July 1, 2016, to $10.50/hour and on July 1, 2017, to $11.00/hour. Then, there will be $1/hour increases in each of the subsequent two years—to $12.00/hour on July 1, 2018, and $13.00/hour on July 1, 2019.

What about Tipped Workers?

Chicago also has increased the minimum wage for tipped employees in Chicago. The Illinois Minimum Wage Law permits employers to take a tip credit of not greater than $3.30 per hour, which sets their minimum wage at $4.95 per hour. With the increase in Chicago’s minimum wage, the minimum hourly rate for tipped employees will be $5.45 per hour. 

Does this Apply to You?

This increase applies to you if you employ at least one employee who works at least two hours a week in a two-week period and maintains a business facility within the boundaries of the City of Chicago or are otherwise subject to the city’s business licensing rules. 

For questions on how this applies to you and your business, call Chuhak & Tecson, P.C. and ask to speak with one of its Employment Law attorneys.  

This Chuhak & Tecson, P.C. communication is intended only to provide information regarding developments in the law and information of general interest. It is not intended to constitute advice regarding legal problems and should not be relied upon as such.

Client Alert authored by: Jeralyn H. Baran