Mayor Brandon Johnson Advances Chicago's Labor Standards with Minimum Wage Increase and Strengthened Worker's Rights Ordinances

Chicago's July 1st ordinance updates reflect the Johnson administration's commitment to strengthening worker protections.

CHICAGO - Today, Mayor Brandon Johnson and the Chicago Department of Business Affairs and Consumer Protection (BACP), announced the scheduled annual increase in Chicago's minimum wage, a scheduled enhancement of the Fair Workweek Ordinance requirements and the full establishment of the legal rights provisions of the Paid Leave and Paid Sick and Safe Leave Ordinance. These changes will go into effect July 1, 2026, and are part of Mayor Johnson's ongoing commitment to promote fairness and dignity for working people. To view informational flyers, Frequently Asked Questions, and public notices on Chicago's labor laws, visit Chicago.gov/Labor Standards.

"Chicago continues to lead the way in advocating for workers, and our labor policies reflect our deep commitment to ensuring all workers are treated with dignity and respect," said Mayor Brandon Johnson. "I am proud to see this year's minimum wage increase and expanded access to worker protections take effect. Working families are the foundation of our city and they deserve fair pay and to feel recognized and valued. We will always fight to protect the rights of workers as we continue building Chicago into the city that works for working people."

"Chicago's labor laws embody the values of our city, workers should earn a fair wage and receive proper protection, while also ensuring that employers uphold their legal responsibilities," said BACP Commissioner Ivan Capifali. Our highest priority is making sure that both workers and employers clearly understand their rights and obligations. By providing education and resources on labor laws, BACP is helping to create a strong and equitable workplace for all".

Every July 1, Chicago's minimum wage increases per the Minimum Wage Ordinance. The minimum wage increases annually according to changes to the Consumer Price Index or 2.5%, whichever is lower. Beginning July 1, 2026:

• The minimum wage will be $17.05.
• The minimum wage for subsidized youth employment programs and subsidized transitional employment programs has caught up to the full minimum wage for the first time ever and will be $17.05.
• Under the One Fair Wage Compromise Ordinance, the wages of tipped workers such as restaurant servers, bartenders, bussers and runners who earn a subminimum wage of $12.96 per hour will remain steady until the next scheduled increase on July 1, 2028.

Under the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, workers are guaranteed up to five days of paid leave and five days of paid sick leave for all of Chicago's workers for employees who work at least 80 hours within any 120-day period.

Starting July 1, 2026, workers are able to enforce their legal rights via private right of action.

Under the Paid Leave requirements:

• Employees accrue at a rate of 1 hour of paid leave for every 35 hours worked (up to 40 hours in a 12-month benefit period)
• Employees must be allowed to use accrued paid leave no later than on the 90th day following the commencement of employment
• Employees can carry over up to 16 hours between 12-month periods (if paid leave is not front loaded).
• Employees can use paid leave for any reason

Under the Paid Sick and Safe Leave requirements:

• Employees accrue at a rate of 1 hour of sick leave for every 35 hours worked (up to 40 hours in a 12-month period)
• Employees must be allowed to use accrued sick leave no later than on the 30th day following the commencement of employment
• Employees can carry over up to 80 hours between 12-month benefit periods
• Employees can use paid sick leave for medical and safety reasons for themselves and covered family members

Additionally, on July 1, 2026, the Fair Workweek Ordinance will include updated compensation metrics. Employees will be covered by the ordinance if they work in one of seven "covered" industries (building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services), earn less than or equal to $33.85/hour or earn less than or equal to $64,945.55/year and the employer has at least 100 employees globally (250 employees and 30 locations if operating a restaurant). The Fair Workweek Ordinance requires certain employers to provide workers with predictable work schedules and compensation for changes.

BACP will host free informational webinars to prepare workers and employers for the upcoming changes to Chicago's labor laws. The webinar schedule is as follows:

• Tuesday, June 23 at 10:00 a.m.: Updates to Chicago's Labor Protections (presented in Spanish) / Actualizaciones a las Protecciones Laborales de Chicago (presentado en español)
• Thursday, June 25 at 10:00 a.m.: Updates to Chicago's Labor Protections (presented in English)

To register for the webinars, visit Chicago.gov/BACPwebinars.

BACP hosted two webinars on June 2^nd, and June 4^th to inform workers and employers of the upcoming changes, recordings of those webinars can be viewed at www.YouTube.com/ChicagoBACP

Chicago businesses are required to post Public Notices for the following Chicago Labor Laws at their business: Minimum Wage, Paid Leave and Paid Sick and Safe Leave and Fair Workweek. The public notices are available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, Korean, Thai, Vietnamese, Ukrainian, Hindi, Nepali and Urdu. To download the public notices, visit Chicago.gov/LaborStandards.

All Chicago worker protections are enforced by the BACP Office of Labor Standards (OLS). The OLS is dedicated to promoting and enforcing Chicago's labor laws. To file a labor standards complaint, workers can use the CHI 311 system (call 3-1-1, use the CHI311 mobile app, or visit 311.chicago.gov) or complete a Complaint Form. For information on Chicago's Labor Laws, visit Chicago.gov/LaborStandards.

Chicagoans are invited to attend Work, Wellness, and a Safer Chicago: A People's Plan Hiring Fair tomorrow June 9 from 10 a.m. to 2 p.m. at Malcolm X College. Companies from across several industries will be on hand to meet with attendees regarding hundreds of job openings.

Hosted in collaboration with the Mayor's Office, City Colleges of Chicago, SERCO, and the Chicago Cook Workforce Partnership, the event aims to connect employers and residents while increasing access to stable employment, career pathway counseling and career readiness services.

For additional information and registration visit ChiCookWorks.org/HIRED.

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