Minimum Wage Increase - July 1st 2023
On July 1st 2023, Chicago’s minimum wage will increases per the Minimum Wage Ordinance. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4 to 20 employees. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower. The minimum wage as of July 1, 2023, will be:
· $15.80 for employers with 21 or more employees (including all domestic workers, regardless of the number employed)
· $15.00 for employers with 4 to 20 employees
· The minimum wage for tipped employees will be $9.48 for employers with 21 or more employees, and $9.00 for employers with 4 to 20 employees (employers must make up the difference between any tips received and the applicable minimum wage for non-tipped workers.)
Additionally, on July 1, 2023, 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 $30.80/hour or earn less than or equal to $59,161.50/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.
Employers that maintain a business facility within the City of Chicago or that 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.
If you have questions about upcoming changes to Chicago’s minimum wage or Fair Workweek Ordinance, please contact the Department of Business Affairs and Consumer Protections (BACP).