Starting July 1st, Chicago workers can expect several positive changes in their work conditions, including a yearly incremental hourly minimum wage increase, the implementation of a new paid time off policy, and enhancements to the Fair Workweek Ordinance requirements. These measures aim to improve the financial well-being and work-life balance of employees in the city.

Under the new regulations announced by Mayor Brandon Johnson's office, the minimum wage in Chicago will see an increase. For employers with 21 or more employees, the hourly minimum wage will rise from $15.80 to $16.20. For employers with 20 or fewer employees, the minimum wage will now also be $16.20, eliminating the tiered wage system that previously existed between large and small businesses.

Since 2021, the hourly minimum wage has been subject to yearly increases based on changes in the Consumer Price Index or a rate of 2.5%, whichever is lower, according to Mayor Johnson's office. Additionally, the minimum wage for subsidized transitional employment programs will be set at $15, ensuring support for youth programs in the city.

In line with the One Fair Wage ordinance, the tipped wage credit for tipped workers will be phased out gradually over a five-year period. Tipped workers, such as restaurant servers, bartenders, and bussers, who currently earn an hourly minimum wage of $11.02, will see an annual increase of 8% until it reaches parity with the city's standard minimum wage on July 1, 2028. This change aims to address income disparities among workers in the restaurant industry.

Furthermore, the Chicago Paid Leave and Paid Sick and Safe Leave ordinance, passed in November 2023, will also take effect on July 1. This policy guarantees up to five days of paid leave and five days of paid sick leave to all Chicago workers who have worked at least 80 hours within a 120-day period, ensuring that employees can take time off when needed without facing financial hardships.

Another important update is the Fair Workweek Ordinance, which will introduce updated compensation metrics starting July 1. The ordinance covers employees in seven industries, and to be eligible for its benefits, workers must earn $31.85 per hour or less, or have an annual income of $61,149.35 or less if the employer has at least 100 employees globally. For restaurants, there must be 250 employees and 30 locations for the ordinance to apply. This regulation ensures that employees in covered industries receive predictable work schedules and compensation for any changes made by their employers.

Overall, these new policies reflect the city's commitment to fair and equitable working conditions, providing Chicago workers with better wages, paid leave, and protections against unpredictable work schedules. With the increase in the minimum wage, phased elimination of tipped wage credit, and the introduction of paid time off, employees in the city can look forward to a more secure and balanced work life.