Many Chicago workers will get a raise in mid-summer, with an annual increase in the hourly minimum wage and a new paid leave policy set to take effect at the beginning of next month, among other measures.
According to Mayor Brandon Johnson's office, the minimum wage increase, implementation of the Paid Leave and Paid Safe and Sick Leave Act and a “scheduled improvement” to the Fair Workweek Act requirements will all go into effect on July 1.
Chicago's minimum hourly wage would increase from $15.80 to $16.20 for employers with 21 or more employees, and from $15 to $16.20 for employers with 20 or fewer employees, eliminating tiered wages for businesses large and small.
Since increasing to $15 in 2021, the minimum hourly wage has increased annually according to changes in the Consumer Price Index or at a rate of 2.5%, whichever is less, according to Johnson's office.
Additionally, minimum hourly wages for youth programs will be subsidized, with the minimum wage for subsidized transitional employment programs set at $15.
As part of the One Fair Wage Act, the inverted wage credit for tipped workers would be phased out over a five-year period.
Wages for tipped workers, such as restaurant waiters, bartenders and bus drivers who currently earn a minimum hourly wage of $11.02, will see an 8% annual increase until they reach parity with the city's standard minimum wage on July 1, 2028.
Additionally, Chicago's Paid Leave and Safe and Sick Leave Act, originally passed in November 2023, will also go into effect on July 1.
Under the measure, all Chicago workers who work at least 80 hours during any 120-day period are guaranteed up to five days of paid vacation and five days of paid sick leave.
Paid leave requirements state:
Employees are entitled to a rate of one hour of paid leave for every 35 hours worked (up to 40 hours over a 12-month period). Employees must be permitted to use accrued paid leave no later than the 90th day following the employees' commitment to work. Up to 16 hours can be rolled over between 12-month periods (if paid leave is not previously credited). Employees can use paid leave for any reason
The requirements for paid sick and safe leave state:
Employees are entitled to a rate of one hour of sick leave for every 35 hours worked (up to 40 hours over a 12-month period). Employees must be allowed to use accrued sick leave no later than the 30th day after employees commit to work. Up to 80 hours can be rolled over between 12-month periods. Employees may use paid sick leave for medical and safety reasons
The Fair Workweek Act will also include updated compensation metrics starting July 1.
Employees are covered under the law if they work in one of seven “covered” industries, which include the following:
Construction Services Healthcare Hotels Manufacturing Restaurants Retail Warehouse Services
Additionally, employees must earn less than or equal to $31.85 per hour or less than or equal to $61,149.35 per year and if the employer has at least 100 employees globally.
If you run a restaurant, there should be 250 employees and 30 locations.
The decree requires some employers to provide workers with “predictable work schedules and compensation for changes.”
