On July 1, 2015, minimum wage workers in the city of Chicago, Illinois will get a raise. Last December, the Chicago City Council passed an Ordinance raising the City’s minimum wage to $10.00 per hour, well above the current $8.25 per hour statewide minimum wage rate. The Chicago Minimum Wage Ordinance also provides for future incremental increases in the minimum wage rate, as follows:
- July 1, 2016 – $10.50 per hour
- July 1, 2017 – $11.00 per hour
- July 1, 2018 – $12.00 per hour
- July 1, 2019 – $13.00 per hour
- On July 1, 2020, and each year thereafter, the minimum wage rate will be adjusted based on increases in the cost of living.
The minimum wage rate for tipped employees will also increase, as follows:
- July 1, 2015 – $5.45 per hour
- July 1, 2016 – $5.95 per hour
- Starting July 1, 2017 – Annual cost of living adjustment.
Who is covered?
The Chicago Minimum Wage Ordinance applies to employers that maintain a business facility within the city of Chicago. Employees who work at least two hours within the City during any two week period qualify for the minimum wage required by the Ordinance.
What is covered?
Qualified employees are entitled to the effective minimum wage rate and are protected from discrimination or retaliation for exercising their rights under the Ordinance. Employers may be required to substantiate tip income. Also, there are limits to formula minimum wage rate increases. Employers that violate the Minimum Wage Ordinance may be fined $500 to $1,000 for each offense.
Is notice required?
Employers are required to post the official Minimum Wage Ordinance notice at every facility within City limits where covered employees work and include the notice in their employees’ first paycheck when the wage increases go into effect. Covered employers can order the Chicago Minimum Wage Ordinance notice here.