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Chicago Minimum Wage

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Question
What is the new Chicago minimum wage?

Answer

On December 2nd, 2014 the Chicago City Council passed an ordinance that will raise the minimum wage for Chicago workers to $13.00 per hour by 2019. The ordinance also increases the minimum wage for tipped employees in from the current state minimum of $4.95 to $5.45 in 2015 and $5.95 in 2016.

Chicago Minimum Wage Increase

Effective Date

Non-Tipped Employees

Tipped Employees

Current

$8.25

$4.95

July 1, 2015

$10.00

$5.45

July 1, 2016

$10.50

$5.95

July 1, 2017

$11.00

Increases with CPI*

July 1, 2018

$12.00

Increases with CPI*

July 1, 2019

$13.00

Increases with CPI*

July 1, 2020

Increases with CPI*

Increases with CPI*

* The ordinance provides that the minimum wage will not increase when the unemployment rate in Chicago for the preceding year, as calculated by the Illinois Department of Employment Security, was equal to or greater than 8.5 percent. The ordinance also provides that if the CPI increases by more than 2.5 percent in any year, the minimum wage increase shall be capped at 2.5 percent.

To Whom Does the Minimum Wage Ordinance Apply?

  • Employers: Employers that maintain a business facility within the City of Chicago and/or are required to obtain a business license to operate in the City are subject to the minimum wage ordinance.
  • Employees: Employees who work two hours in the City within the period of two weeks qualify for the minimum wage required by the ordinance. This includes domestic employees and home health care workers. A union may waive its members' rights to collect the minimum wage as part of a collective bargaining agreement.

To Whom Does the Minimum Wage Ordinance NOT Apply?

  • Employees taking part in government-subsidized temporary youth employment programs.
  • Employees taking part in government-subsidized transitional employment programs.
  • Employees of any governmental entity other than the City.
  • Certain employees exempted under state law, including:
    1. Employees under 18 years of age. Employers are authorized to pay these employees a wage 50 cents below the state minimum hourly wage.
    2. Adult employees (i.e. those 18 years of age or older) in the first 90 days of employment. Employers are authorized to pay these employees a wage 50 cents below the state minimum hourly wage.
    3. Disabled employees, pending state approval. Trainees taking part in a program for no more than six months, pending state approval.
    4. Employees working at a business with four or fewer employees, not counting the employer’s parents, spouse, children or other members of the employer’s immediate family.

Penalties for not enforcing Chicago minimum wage

  • The department of business affairs and consumer protection shall enforce this ordinance, and the commissioner is authorized to adopt regulations for the proper administration and enforcement of its provisions.
  • Employers that violate the Minimum Wage ordinance will be fined $500 to $1,000 for each offense. Each day that a violation continues constitutes a separate and distinct offense to which a separate fine shall apply.

Additional Links

The full text of Minimum Wage ordinance

City Website



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Article Details
Views: 817 Created on: Jun 17, 2015
Date updated: Sep 25, 2015
Posted in: Resource
Tagged: Minimum Wage


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