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The scheduled annual increase in Chicago’s minimum wage, implementation of the Paid Leave and Paid Sick and Safe Leave Ordinance, and a scheduled enhancement of the Fair Workweek Ordinance requirements will go into effect July 1, 2024.

Every July 1, Chicago’s minimum wage increases per the Minimum Wage Ordinance. Beginning July 1, 2024:

  • The minimum wage will be $16.20.
  • The minimum wage for subsidized youth employment programs, and subsidized transitional employment programs will be $15.00.
  • The minimum wage will no longer be tiered for large and small businesses.

Since reaching $15 per hour in 2021, the minimum wage increases annually according to changes to the Consumer Price Index or 2.5%, whichever is lower.

The One Fair Wage Ordinance was passed by the Chicago City Council, phasing out the tipped wage credit for tipped workers over a 5-year period. The legislation will provide for the wages of tipped workers such as restaurant servers, bartenders, bussers and runners who earn a sub-minimum wage of $11.02 per hour to increase by 8 percent per year until it reaches parity with Chicago’s standard hourly minimum wage on July 1, 2028.

On November 9, 2023, the Chicago City Council passed the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance. The ordinance guarantees up to five days of paid leave and five days of paid sick leave for all of Chicago’s workers for employees who work at least 80 hours within any 120-day period.

Under the Paid Leave requirements:

  • Employees accrue at a rate of 1 hour of paid leave for every 35 hours worked (up to 40 hours in a 12-month period).
  • Employees must be allowed to use accrued paid leave no later than on the 90th day following the commitment of employment.
  • Employees can carry over up to 16 hours between 12-month periods (if paid leave is not front loaded).
  • Employees can use paid leave for any reason.

Under the Paid Sick and Safe Leave requirements:

  • Employees accrue at a rate of 1 hour of sick leave for every 35 hours worked (up to 40 hours in a 12-month period).
  • Employees must be allowed to use accrued sick leave no later than on the 30th day following the commitment of employment.
  • Employees can carry over up to 80 hours between 12-month periods.
  • Employees can use paid sick leave for medical and safety reasons.

Additionally, on July 1, 2024, the Fair Workweek Ordinance will include updated compensation metrics. Employees will be covered by the ordinance if they work in one of seven “covered” industries (building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services), earn less than or equal to $31.85/hour or earn less than or equal to $61,149.35/year, and the employer has at least 100 employees globally (250 employees and 30 locations if operating a restaurant). The Fair Workweek Ordinance requires certain employers to provide workers with predictable work schedules and compensation for changes.

To view informational flyers, Frequently Asked Questions, and public notices on Chicago’s labor laws, visit Chicago.gov/LaborStandards.