It is essential for businesses to stay compliant with local minimum wage laws, which can differ from county, state, and federal laws. This summer there have been updates to the wage laws in Chicago and Cook County. Below is an overview of some of the changes:
Current Minimum Wage Rates (as of July 1, 2025):
Generally, businesses with four or more employees located in the City of Chicago must pay their employees the minimum wage set by the city.
Under the Chicago Minimum Wage Ordinance, the following rates apply:
- Standard Employees: $16.60/hour
- Standard Tipped Employees: $12.62/hour*
- Youth Workers: $16.50/hour
- Youth Tipped Workers: $12.54/hour*
*Please note that if the tipped wage plus tips does not equal the minimum wage, the employer is responsible for making up the difference.
Businesses with four or more employees located outside of Chicago, but still within Cook County, should be aware of the minimum wage set by the county.
Under the Cook County Minimum Wage Ordinance, the following rates apply:
- Standard Employees: $15.00/hour
- Tipped Employees: $9.00/hour
Chicago Paid Leave and Fair Workweek:
Under the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, the paid leave payout upon employment termination has been updated from 16 hours to full payout (up to 56 hours) for employers with 51-100 employees.
Also, the compensation thresholds for employees covered by the Chicago Fair Workweek Ordinance have changed. This ordinance may apply to Chicago employers primarily engaged in specific industries (building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services) that employ 100 or more employees.
Employers Should Check That They Have:
- Body of text Updated payroll systems to reflect the current wage rates.
- Posted required minimum wage notices in a conspicuous place in each facility.
- Provided employees with required notices regarding updated laws.
- Ensured tipped workers’ wages meet legal requirements, including proper documentation of tip credits.
If you’re unsure whether your business is in compliance, or how these rules apply to your employees, Albee Law is here to assist. Please contact Albee Law PC at (312) 279-0115 or by email at [email protected].
