Summer Surge: Chicago Minimum Wage Increases Effective July 1, 2025
As of July 1, 2025, Chicago’s minimum wage rates have officially increased, marking another important step in the city’s ongoing efforts to ensure fair compensation for workers. The new minimum wage is now $16.60 per hour for non-tipped employees. For tipped employees, such as restaurant servers and bartenders, the base wage has increased to $12.62 per hour. However, it’s important for employers to note that if an employee’s base wage plus tips does not meet or exceed the full minimum wage of $16.60, the employer is legally required to make up the difference. These updated wage requirements apply to businesses with four or more employees and are part of the broader municipal push to promote economic equity and reduce income disparity across Chicago’s workforce.
What does this mean for workers?
In addition to the general minimum wage increase, certain groups of workers in Chicago are subject to different rates. Employees working under City of Chicago contracts or concessionaire agreements are now entitled to a higher minimum wage of $17.80 per hour. Youth workers under the age of 18 must be paid at least $16.50 per hour if they are non-tipped, and $12.54 per hour if they earn tips. It’s important to note that these wage increases apply specifically to workers and employers within the City of Chicago. Statewide, the Illinois minimum wage increased to $15.00 per hour on January 1, 2025, and remains unchanged.
How to navigate changes as an employer
Employers in the City of Chicago must comply with specific posting requirements to ensure employees are informed of their rights. This includes displaying public notices at each place of business that outline Chicago’s labor laws related to the current minimum wage, paid leave, and paid sick leave. Employers can review and download these required notices here. Additionally, as of July 1, 2025, compensation ceilings for covered employees under the Fair Workweek Ordinance have increased. Employers subject to this ordinance are also required to post a Fair Workweek Notice at each location. Further details on the new Fair Workweek requirements and covered employees can be found here.
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