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Notice to Employers Operating in the City of Chicago: Minimum Wage to Increase July 1

Effective July 1, 2015, the minimum wage for employees in the city of Chicago will increase to $10 per hour.

All employers doing business in Chicago are required to post this “Notice to Employers and Employees” regarding the pay increase at every work site. Additionally, this notice must be provided with the first paychecks issued to non-exempt employees after the wage increase goes into effect and to every new non-exempt employee hired after the wage increase goes into effect.

The minimum wage ordinance, passed by the Chicago City Council in December 2014, increases the minimum wage for Chicago workers annually.

The timeline of incremental increase is:  

Effective Date Non-Tipped Employees Tipped Employees
Current $8.25 $4.95
July 1, 2015 $10.00 $5.45
July 1, 2016 $10.50 $5.95
July 1, 2017 $11.00 Increases with CPI*
July 1, 2018 $12.00 Increases with CPI*
July 1, 2019 $13.00 Increases with CPI*
July 1, 2020 Increases with CPI* Increases with CPI*

* The ordinance provides that the minimum wage will not increase when the unemployment rate in Chicago for the preceding year, as calculated by the Illinois Department of Employment Security, was equal to or greater than 8.5 percent. The ordinance also provides that if the consumer price index (CPI) increases by more than 2.5 percent in any year, the minimum wage increase shall be capped at 2.5 percent.

© 2023 Neal, Gerber & Eisenberg LLP.National Law Review, Volume V, Number 180

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