Chicago Increases Minimum Wage Four Years Ahead of the Rest of Illinois as of July 1, 2022

Starting July 1, 2022, Mayor Lightfoot increased the city of Chicago’s minimum wage to $15.40 for most workers. Workers at businesses with 21 or more employees will be guaranteed a minimum wage of $15.40 an hour, while workers at businesses with 4-20 employees will see their minimum wage rise to $14.50 an hour as part of a gradual move to $15 an hour by 2023 for small businesses.

For domestic workers and small employers, regardless of the number of employees, the minimum wage will increase to $15.40 effective July 1, 2022.

The minimum wage for tipped employees, for employers with 21 or more employees will increase to $9.24, and $8.70 for employers with 4-20 employees. Should the employee make less in tips than the applicable minimum wage, then the employer must make up the difference.

If you are an employer within the Chicago city limits, you should be reviewing your current payroll setup to verify you are complying with the city guidelines regarding these new minimum wage requirements. In general, with the increase, if you are not already paying your employees above the new minimum wage requirements, you can expect to see your payroll costs immediately rise in accordance with these changes.

If you have any questions, please feel free to contact Kelly Switt, Bill Sebastiano, Ashley Trabaris, Alisha Vincent, or Marie Straka at 847-956-1040.

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