Chicago Ordinance Requiring Minimum Wage Increase

Legal Alert: As of July 1, 2019, the Chicago Minimum wage will increase to $13.00. The minimum wage for tipped employees was raised to $6.10 in 2017 and will be raised to meet CPI in following years. These increases are in response to a City of Chicago ordinance passed in 2014, which will (after 2019) set the minimum wage to increases with CPI*. This requirement applies to all employers that maintain a business facility within the city of Chicago and/or are required to obtain a business license to operate in the city.

* The ordinance provides that the minimum wage will not increase when the unemployment rate in Chicago for the preceding year, as calculated by the Illinois Department of Employment Security, was equal to or greater than 8.5 percent. The ordinance also provides that if the CPI increases by more than 2.5 percent in any year, the minimum wage increase shall be capped at 2.5 percent.

Further details can be found on the City of Chicago website here: https://www.chicago.gov/city/en/depts/mayor/supp_info/minimum-wage.html

Download PDF: Chicago Minimum Wage Increase

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