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New City of Chicago Minimum Wage Rates

By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services
Published June 11, 2024

Many Chicago workers have a midsummer pay raise on the horizon, as new Chicago minimum wage rates have been announced for July 1, 2024. 

Chicago's hourly minimum wage will increase from $15.80 to $16.20 for employers with 21 or more employees and from $15 to $16.20 for employers with 20 or fewer employees, removing the tiered wage scale for large and small employers. 

Further, the One Fair Wage ordinance will gradually phase out tip credits currently used by many Chicago employers. The phase-out period will start this year on July 1 and conclude with the complete elimination of the tip credit by July 1, 2028. As such, the tipped minimum wage will see a yearly increase of 8% annually until it reaches parity with the city's standard minimum wage in four years.

The new Chicago minimum wage rates, effective July 1, 2024, are summarized here:

Chicago minimum wage postingt

More details can be found on the City of Chicago’s website, including copies of the mandatory employer postings.

As a reminder, these minimum wage changes must be enacted on or before July 1, 2024. Employers are required to communicate pay changes in writing prior to the date of the change. 

HR Source members with questions are encouraged to reach out via HR Hotline Online or at 800-448-4584.