The yearly increase in the hourly minimum wage will start on July 1. This means that a lot of workers in Chicago will get a raise in the middle of summer. Along with other changes, a new policy on paid time off is set to start at the beginning of next month.
The hourly minimum wage in Chicago will go up from $15.80 to $16.20 for businesses with 21 or more workers and from $15 to $16.20 for businesses with 20 or fewer employees. This will get rid of the different rates for big and small businesses.
Johnson’s office says that since it went up to $15 an hour in 2021, the hourly minimum wage goes up every year by either 2.5% or the rate of changes in the Consumer Price Index, whichever is less.
Because of the One Fair pay law, the tipped pay credit for workers who get tips is being phased out over five years.
The hourly minimum wage for tipped workers like servers, bartenders, and bussers is currently $11.02. It will go up by 8% every year until it hits the same level as the city’s standard minimum wage on July 1, 2028.
This is also what the office of Mayor Brandon Johnson says: on July 1, the Paid Leave and Paid Sick and Safe Leave Ordinances will go into effect, along with a “scheduled enhancement” of the Fair Workweek Ordinance standards.
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The law says that all Chicago workers who put in at least 80 hours in a 120-day period will get up to five days of paid leave and five days of paid sick leave.
The rules for paid leave say the following:
- One hour of paid leave is earned for every 35 hours worked, up to a maximum of 40 hours per year.
- Paid leave must be used by employees no later than 90 days after they started working for the company.
- Employees can carry over up to 16 hours of paid leave from one year to the next (as long as paid leave is not front-loaded).
- Anyone can take paid time off for any reason.
The rules for paid sick leave and safe leave say the following:
- One hour of sick leave is earned for every 35 hours worked, up to a maximum of 40 hours per year.
- People who have earned sick leave must be able to use it no later than 30 days after becoming employed.
- Employees can carry over up to 80 hours from one year to the next.
- Workers can take paid sick leave for health and safety reasons.
Starting on July 1, the Fair Workweek Ordinance will also have new pay standards as reported by NBC Chicago.
People who work in one of the seven “covered” businesses are protected by the ordinance. These are the industries:
- Building services
- Health care
- Hotels
- Manufacturing
- Restaurants
- Retail
- Warehouse services
Also, workers must make less than or equal to $31.85 an hour or less than or equal to $61,149.35 a year, and the company must have at least 100 workers around the world.
If you run a restaurant, you need 250 workers and 30 locations.
Some employers are required by the law to give their workers “predictable work schedules and compensation for changes.”
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