The Chicago And Cook County Minimum Wage Increases On July 1, 2018

Employers who are covered by the Chicago and/or Cook County Minimum Wage Ordinances should prepare for increases that go into effect next week on July 1, 2018. 

In Chicago, the minimum wage increases to $12.00 per hour and the minimum wage for tipped employees increases to $6.25.  In Cook County, the minimum wage increases to $11.00 per hour and the minimum wage for tipped employees increases to $5.10 per hour.  The Cook County Minimum Wage Ordinance does not apply to all municipalities in Cook County; therefore, you should confirm whether your municipality opted-out, or in some cases, may have recently opted back in. 

The minimum wage increases have additional requirements.  Chicago employers are required to issue notice a to all employees about the increases that must be given with the first paycheck after July 1, 2018.  A copy of the notice is here.  Employers in both Chicago and Cook County should be aware that July 1, 2018, may fall in the middle of their pay period, so employers should choose whether to implement the increase for the entire pay period covering July 1, 2018, or make sure that the minimum wage increases for hours worked on July 1, 2018. 

Finally, employers with tipped employees should give written notice to their tipped employees of the change in their hourly rate of pay and other information related to what will happen if employees do not make up the difference between the new minimum wage and the new tip credit wage.