On July 1, 2025, several important changes to Chicago labor ordinances went into effect. Chicago’s Minimum Wage Ordinance, Fair Workweek Ordinance, and Paid Leave and Paid Sick and Safe Leave Ordinance have all seen significant changes that will impact employers and employees.

Quick Hits

• Effective July 1, 2025, Chicago’s minimum wage has increased.
• Effective July 1, 2025, the compensation thresholds under the Fair Workweek Ordinance have increased.
• Effective July 1, 2025, medium-sized employers are required to pay out unused, accrued paid leave to separated employees under the Paid Sick and Safe Leave Ordinance.
• A private right of action is available to covered employees when their employers violate the paid leave provisions of the Paid Leave and Paid Sick and Safe Leave Ordinance. (A private right of action previously existed for violations of the Paid Sick Leave provisions.)

Minimum Wage Ordinance

Under the Minimum Wage Ordinance, covered employees must be paid no less than the city’s established minimum wage. Effective July 1, 2025:

• The minimum wage for employees of standard employers (four or more employees) has increased from $16.20 to $16.60 per hour, a 2.5 percent increase.
• The tipped minimum wage for standard employers has increased from $11.02 to $12.62 per hour.

Chicago is continuing its five-year phaseout of the tipped wage credit. This means the gap between the tipped and standard minimum wage will gradually close. The July 1 increase reflects the second...

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