The Chicago Department of Business Affairs and Consumer Protection (BACP) announced the annual scheduled increase in Chicago’s minimum wage and a scheduled enhancement of the Fair Workweek ordinance requirements. Every July 1, Chicago’s minimum wage increases per the Minimum Wage Ordinance. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5 percent, whichever is lower, since reaching $15 per hour in 2021. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. The minimum wage as of July 1, 2022 will be:

• $15.40 for employers with 21 or more employees (including all domestic workers, regardless of the number employed)

• $14.50 for employers with 4-20 employees

• The minimum wage for tipped employees will be $9.24 for employers with 21 or more employees, and $8.70 for employers with 4-20 employees (employers must make up the difference between any tips received and the applicable minimum wage for non-tipped workers.)

In another change, employees will need to earn less than $29.35 per hour or $56,381.85 per year to gain protection under the Fair Workweek Ordinance. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. To learn about Chicago’s labor laws, visit Chicago.gov/LaborStandards.