Chicago and Cook County, Illinois Minimum Wage Rates Increase

Raising the Minimum Wage Rate at the Local Level

The federal minimum wage rate has been $7.25 an hour since 2009 despite the rising costs of living in the years since.  In response, many state and city governments have taken responsibility for raising minimum wage rates to better meet the needs of workers and their families.  Currently, there are 29 states that have minimum wage rates higher than the federal minimum wage rate.  Still, many city lawmakers have decided that state minimum wages are not enough to support workers in their communities and have adopted even higher minimum wage standards in recent years.

Chicago and Cook County Minimum Wage

Although cities on the east and west coasts account for the country’s highest minimum wage rates, two Midwest localities – the City of Chicago and Cook County, Illinois – have raised minimum wage rates appreciably.  When Chicago’s minimum wage ordinance was adopted in 2014, Chicago lawmakers took into account the decline in the value of wages over the past 50 years, the disproportionate impact that low wage rates has on women and minorities, and the increasing unaffordability of life in Chicago for many of its residents.  The lawmakers observed that local workers and the economy both stood to gain from increasing the minimum wage rate.  Cook County followed two years later with its own minimum wage ordinance.

How Much Will Chicago and Cook County Minimum Wages Increase?

Both Chicago’s and Cook County’s minimum wage ordinances established a series of incremental wage rate increases to be followed by an adjustment of the minimum wage rate each year based on the rate of inflation.  This July 1^st, Chicago’s scheduled minimum wage rate is $12.00 per hour and Cook County’s minimum wage rate is $11.00 per hour.  By comparison, Illinois’ minimum wage is $8.25 an hour (and has been since 2010).  Illinois’ tipped employee base wage rate is $4.95 an hour.

In Chicago, present and future minimum wage increases are as follows:

In Cook County, present and future minimum wage increases are as follows:

What Should Employers Do Now?

Beginning July 1, employers with a business license or facility within the City of Chicago or within Cook County must pay tipped and non-tipped employees the minimum wage rate based on where the work is performed.  In addition, employers are required to post an official minimum wage notice in the workplace to inform employees of the minimum wage increases and their rights under the law.  All employers must also provide a copy of the notice to new employees with their first paychecks.  Employers can be fined $500- $1,000 per offense for violations of the law.

Employers with a facility or workers who perform work within the City of Chicago can comply with the city’s posting requirement by posting the Chicago Minimum Wage and Paid Sick Leave Poster.  Employers whose employees perform work within Cook County can comply with the county’s posting requirement with the Cook County Minimum Wage and Earned Sick Leave Poster.