Chicago’s Minimum Wage Set to Increase on July 1st

Published On: June 30th, 2023Categories: Individual, Payroll, Press Release, Small Business

Effective July 1, 2023, the City of Chicago has raised the hourly minimum wage for all employers within the city limits. These new rates are dependent on the size of the business and whether the individual holding the position is a tipped employee. The new wages are as follows:

Employers with 21 or more workers:

Minimum Wage: $15.80 per hour
Tipped Worker: $9.48 per hour

Employers with 4 to 20 workers:

Minimum Wage: $15.00 per hour
Tipped Worker: $9.00 per hour

According to the City of Chicago notice, tipped workers are those who receive tips as part of their wage, like restaurant servers. If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.

The increase on July 1^st marks the final adjustment of the yearly incremental minimum wage increase granting small business employees a minimum wage of $15 per hour.

Also, beginning on July 1^st, the Fair Workweek Ordinance will also introduce updated compensation metrics, including predictable work schedules and compensation for changes. The press release from Mayor Brandon Johnson’s office states that those employees covered by the ordinance include any individuals who work in seven “covered” industries. Those industries include the following:

Building services
Health care
Hotels
Manufacturing
Restaurants
Retail
Warehouse services

Individuals from these “covered” industries must earn less than or equal to $30.80 an hour, or less than or equal to $59,161.50 per year, and work for an employer with at least 100 employees globally (250 employees and 30 locations for a restaurant).

In addition to the Chicago minimum wage increase, employees in Cook County will see an increase as well. The hourly minimum wage will increase from $13.35 to $13.70 for non-tipped employees and from $7.40 to $8.00 for tipped employees. The conditions for this increase are as follows:

The employee has worked for a Cook County employer for at least 2 hours in any two-week period, and
The employer has four or more employees (or the employee is a domestic worker) and
The employer maintains a business facility in Cook County or is issued a business license by Cook County.

For complete details, please visit the City of Chicago Business Affairs and Consumer Protection Notice.

About the Author: Andrea Doerdelmann

Andrea Doerdelmann is every payroll client’s preferred Eccezion team member, or she’s at least their employees’ favorite– whether they know it or not. Why? She makes sure everyone gets paid. “Andrea is the lead team member of our payroll department,” firm partner Shelly Spata says. “She is great at following through with clients and resolving payroll issues. She is also excellent at adapting to various client accounting systems to get payroll done on the client’s system rather than ours.”