The annual scheduled increase in Chicago’s minimum wage and a scheduled enhancement of the Fair Workweek ordinance requirements will go into effect on Friday, July 1, 2022.
The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower, since reaching $15 per hour in 2021. The minimum wage for small businesses continues to increase towards $15 per hour by 2023.
As of July 1, 2022, the Chicago minimum wage will be:
- $15.40 for employers with 21 or more employees (including all domestic workers, regardless of the number employed)
- $14.50 for employers with 4-20 employees
- The minimum wage for tipped employees will be $9.24 for employers with 21 or more employees, and $8.70 for employers with 4-20 employees (employers must make up the difference between any tips received and the applicable minimum wage for non-tipped workers.)
As of July 1, 2022, scheduled enhancements to the Fair Workweek Ordinance will require:
- Employers in covered industries to post work schedules with at least 14 days’ notice, an increase from the previous 10 days’ notice.
- Employees will need to earn less than $29.35 per hour or $56,381.85 per year to gain protection under the Fair Workweek Ordinance.
- Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services.
The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago’s youth looking for summer employment opportunities. Anyone age 24 or younger employed by, or engaged in employment coordinated by, a nonprofit organization or government agency will see a minimum wage increase to $12.00 on July 1, 2022.
The BACP Office of Labor Standards webpage offers informational materials on Chicago’s Labor Standards Laws. Chicago businesses are required to post the Minimum Wage Notice and Fair Workweek Notice at their business. The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense.
Chicago’s minimum wage increases each July 1st. Employers that maintain a business facility within the City of Chicago or are required to obtain a business license to operate in the City are required to pay their employees at least the Chicago minimum wage. Additionally, any employee that works two hours or more in the City within a two-week period must also receive at least the Chicago minimum wage.
To learn about Chicago’s labor laws, visit Chicago.gov/LaborStandards.