What’s happening? The city of Chicago, Illinois joined a host of other communities across the county that have established minimum wage rates significantly higher than their respective state minimum wage rates. Among them are Albuquerque, NM, Santa Fe, NM, Montgomery County, MD, Prince George’s County, MD, Berkeley, CA, San Francisco, CA, Oakland, CA, and Seattle, WA.
How much?
Chicago’s Minimum Wage Ordinance goes into effect July 1, 2015 and the minimum wage rate will start at $10.00 per hour. It is scheduled to gradually increase each July 1 until it reaches $13.00 per hour on July 1, 2019. Each July 1 thereafter, the City’s minimum wage rate will be adjusted for inflation.
Chicago’s tipped employees will also receive a raise starting July 1 when the tipped minimum wage rate will increase by $1 over the state’s tipped rate over the next two years, from a City starting rate of $5.45 per hour on July 1, 2015 and increasing to $5.95 on July 1, 2016. The tipped rate will be adjusted for increases in the cost of living in subsequent years.
Who is covered?
- All employers that maintain a business facility within the city of Chicago or businesses that are required to maintain a City business license
- All employees that work at least 2 hours in the City within a two-week period, including domestic employees and home health workers.
Who must post and provide individual notice? All employers must post the official Minimum Wage Ordinance Poster at the business facility and provide the notice with employees’ first paychecks each time an increase takes effect. The notice advises employees that they are protected from retaliation for exercising their rights and provides the web address and contact information for the Department of Business Affairs and Consumer Protection. Violations may result in fines from $500 to 1,000 for each offense. Order the official notice using the link below: