Chicago’s New Minimum Wage

  • Estate Planning
Chicago's new minimum wage

On July 1, 2021, Chicago’s hourly minimum wage increased to $15 increased for employers with employees who work in Chicago, a $1 per hour increase above the previous $14. Chicago’s new minimum wage goes into effect 4 years before the rest of Illinois reaches a $15 minimum hourly wage in 2025.  The new law was passed pre-COVID. Small businesses with less than 20 employees have until 2023 to implement the increase. Across Illinois, the minimum wage increased from $10 per hour to $11 per hour on January 1, 2021.

The city estimates more than 400,000 people will get a raise due to the minimum wage increase. Chicago Mayor Lori Lightfoot said the minimum wage increase is “one of the most critical pieces of legislation to be introduced during my administration.”

Domestic workers including housekeepers, nannies, caregivers and more will receive a minimum wage of $15 an hour beginning on August 1.

For workers who rely on tips, such as many restaurant employees, the minimum wage increased to $8.40 or $9, depending on the size of the employer, but employers must make up the difference if workers do not make the minimum wage with tips.

Each year Illinois passes many new laws that typically go into effect in the new year. In 2020, the COVID pandemic impacted the Illinois General Assembly in March 2020, which greatly limited lawmaker’s ability to convene and pass new laws.

“Our dedicated workforce deserves to be protected and treated with dignity and respect – especially after the devastating socioeconomic fallout caused by the pandemic.”

– Chicago Mayor Lori Lightfoot

The federal minimum wage remains $7.25 an hour.

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