New Chicago Minimum Wage and Fair Workweek Changes Beginning in July

July 15, 2022

Starting July 1, 2022, the City of Chicago’s annual increase in the minimum wage will take effect, as well as additional changes put forth in the Fair Workweek Ordinance.

Pursuant to the Minimum Wage Ordinance, there are different wage increases depending on the size of the business. Beginning on July 1st, minimum wage will be increased to $15.40 an hour for businesses that employ 21 or more employees. This includes all domestic workers. For smaller businesses, those with 4 to 20 employees, the minimum wage for employees will increase to $14.50 an hour. Tipped employees are similarly differentiated based on employer size. Employers with 21 or more employees will be required to pay their tipped employees at least $9.24 an hour while those with 4 to 20 employees must pay a minimum of $8.70 an hour. Employers must compensate for the difference between tips received and applicable minimum wage for non-tipped workers. While these increases pertain to adult employees, Chicago youth are impacted by wage increases as well. Individuals under the age of 24 years old who are employed or engaged in employment organized by a nonprofit organization or government agency must be paid a minimum of $12.00 an hour beginning on July 1.

Along with the increase in minimum wage, employers should be aware of additions to the Fair Workweek Ordinance that also go into effect on July 1, 2022.  Specifically, Chicago based employers in covered industries must post work schedules at least 14 days in advance. This new obligation increases the notice time from the prior 10-day notice requirement. Industries required to implement this change include building, healthcare, hotel, manufacturing, restaurant, retail, and warehouse services. Additionally, there are changes to employee coverage under the Fair Workweek Ordinance. Beginning on the 1st of July, employees earning less than $29.35 per hour, or $56,381.85 on an annual basis, will earn protection under this ordinance.

Finally, Chicago employers must post both the Minimum Wage Notice and the Fair Workweek Notice as part of the July 1st requirement. These notices must be available in a variety of languages including English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean. Employers can visit Chicago’s BACP website for notices in each of these languages. Failing to act and meet the requirements stipulated by the Chicago ordinances will result in steep consequences. For example, employers who violate the Minimum Wage Ordinance may be fined between $500 and $1000 for each day the business fails to comply with the requirements. Compliance with the minimum wage increase obligations and conditions surrounding the Fair Work Week Ordinance should be implemented beginning on July 1 to avoid such penalties.

If you have question or concerns regarding these changes to minimum wage requirements and fair workweek conditions, please contact the qualified attorneys at Rock Fusco & Connelly.