Overview
- Chicago’s standard minimum wage at employers with four or more employees increased to $17.05 per hour on July 1, 2026, with city officials updating the overtime threshold as well.
- Tipped workers at those employers saw a base wage rise to $12.96 per hour on July 1, 2026, and employers must pay the difference if tips do not bring workers to the full minimum wage.
- The City Council voted in late May to delay the planned larger tipped-wage hikes, moving the next major increase to July 1, 2028, and phasing full parity by July 1, 2030 for larger employers and by July 1, 2033 for small businesses defined as 21 or fewer employees.
- Parallel rules also changed: Cook County raised its non‑tipped minimum to $15.40 and tipped to $9.25 on July 1, 2026, while Illinois’ statewide floors remain at $15 non‑tipped and $9 tipped from prior law; Chicago’s overtime minimums were set higher for both tipped and non‑tipped workers.
- Worker advocates said they were disappointed by the delay and warned it slows progress toward eliminating the lower tipped rate, while restaurant groups and some officials argued the phased timeline will help small, thin‑margin businesses avoid sudden labor-cost shocks and potential job losses.