July 1 Minimum Wage and Fair Workweek Changes for Chicago

By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services
Published June 10, 2025

Chicago employers should prepare for two important employment law updates taking effect July 1, 2025: new minimum wage rates and revised eligibility requirements under the Chicago Fair Workweek Ordinance.

Chicago Minimum Wage Increase
The City of Chicago will raise its minimum wage as part of its annual adjustment. New rates effective July 1, 2025 are:

• $16.60/hour for non-tipped workers
• $16.50/hour for subsidized youth employment program workers
• $12.62/hour for tipped workers
• $12.54/hour for youth tipped workers

Employers must provide written notice to all employees before any pay change takes effect. Update your Chicago minimum wage poster and distribute the revised notice to all covered employees no later than 30 days after July 1, 2025.

Fair Workweek Updates
The Fair Workweek Ordinance, which applies to businesses in the retail, hospitality, healthcare, and food service sectors has been amended. This Ordinance requires certain employers to provide workers with predictable work schedules and compensation for changes. The July 1, 2025 updates impact who is covered under this law. Employees earning $32.60 or less per hour, or $62,561.90 or less per year, are now covered at employers with at least 100 employees globally (or 250 employees and 30 locations for restaurant operators).

Employers with obligations under the Fair Workweek Ordinance must update their Fair Workweek poster. Further, the revised notice must be distributed to all covered employees no later than 30 days after July 1, 2025.

For more information on these changes, visit the Business Affairs and Consumer Protection website. The City of Chicago is also hosting complimentary information webinars on June 10, 12, 24, and 26.