• Chicago is raising its minimum wage to $10.00 per hour on July 1
  • May 25, 2015 | Author: Jeralyn H. Baran
  • Law Firm: Chuhak & Tecson, P.C. - Chicago Office
  • Starting on July 1, 2015, Chicago’s minimum wage will be $10.00 per hour. This is higher than the state minimum wage which is $8.25 per hour and the federal minimum wage which is $7.25 per hour.

    Chicago will raise its minimum wage to $13.00 per hour by 2019. The increases will be phased in gradually, starting with the first increase of $.50 per hour on July 1, 2015. Chicago will increase its minimum wage by $.50 per hour on July 1, 2016, to $10.50/hour and on July 1, 2017, to $11.00/hour. Then, there will be $1/hour increases in each of the subsequent two years—to $12.00/hour on July 1, 2018, and $13.00/hour on July 1, 2019.

    What about Tipped Workers?

    Chicago also has increased the minimum wage for tipped employees in Chicago. The Illinois Minimum Wage Law permits employers to take a tip credit of not greater than $3.30 per hour, which sets their minimum wage at $4.95 per hour. With the increase in Chicago’s minimum wage, the minimum hourly rate for tipped employees will be $5.45 per hour.

    Does this Apply to You?

    This increase applies to you if you employ at least one employee who works at least two hours a week in a two-week period and maintains a business facility within the boundaries of the City of Chicago or are otherwise subject to the city’s business licensing rules.