Chicago Raises Minimum Wage and Expands Worker Benefits Starting July 1
CHICAGO – Starting July 1, Chicago will raise its minimum wage and implement expanded benefits for workers under new labor laws.
The city’s standard minimum wage will increase to $16.60 per hour, while subsidized youth program workers will receive $16.50 per hour. Tipped workers—including restaurant servers and bartenders—currently earning $12.62 per hour will see their wages rise by 8% annually under the One Fair Wage Ordinance. This will continue until their earnings match the city’s standard minimum wage by July 1, 2028.
Additional reforms will take effect the same day, including new standards for paid leave, sick time, and predictable work scheduling.
Under the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, employees working at least 80 hours within 120 days will qualify for:
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5 days of paid leave (for any reason)
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5 days of paid sick leave
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Carryover of up to 16 hours of unused paid leave and up to 80 hours of unused sick leave annually
The updated Fair Workweek Ordinance will also introduce new compensation guidelines. Employers in seven key sectors—building services, healthcare, hospitality, manufacturing, restaurants, retail, and warehousing—must provide predictable schedules and compensation for last-minute changes.
These regulations apply to workers earning $32.60/hour or less, or $62,561.90/year or less, and employed by companies with at least 100 global employees.
Mayor Brandon Johnson emphasized the city’s labor commitment, stating, “Chicago is the most pro-worker city in the country. These measures ensure working people are treated with dignity and fairness.”
The reforms aim to strengthen economic security for Chicago’s workforce and create more stable, livable communities.
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