Minimum wage in Chicago operates under a dual-layer system that combines state law with city ordinances. As of 2024, the specific rate an employee earns depends on the size of their employer and the nature of their work. Understanding the exact figure requires looking at both the general statutory minimum and the specific cost-of-living adjustments made by the city council.
Current Minimum Wage Rates in Chicago
For most standard businesses, the minimum wage in Chicago is significantly higher than the federal baseline. The city mandates a tiered structure based on the number of employees a company has. This ensures that larger corporations, which typically have greater resources, contribute more to the local living wage economy than small, independent businesses.
Standard Rates for Large and Small Employers
Large employers (21 or more employees): The hourly rate is $15.00.
Small employers (20 or fewer employees): The hourly rate is $14.00.
Tipped Workers and Subminimum Wages
Not all workers in the service industry earn the full hourly minimum. Chicago, like many major cities, allows for a lower cash wage for employees who consistently receive tips. However, this system includes a critical safeguard to ensure that total earnings meet the standard threshold.
Cash Wage and Tip Credit Rules
Tipped employees for large employers must earn a cash wage of $10.50 per hour.
Employers may claim a "tip credit" to cover the difference, but if tips and cash wages do not equal $15.00, the employer must补足 the shortfall.
For small employers, the cash wage is $9.50 per hour, with a similar requirement to make up the difference if total earnings fall below $14.00.
It is important for workers to understand that this structure guarantees a baseline income. If a server’s tips do not bring their total earnings to the standard minimum, the employer is legally obligated to pay the difference to reach the city-mandated rate.
Upcoming Changes and Annual Adjustments
The minimum wage in Chicago is not static; it is designed to evolve with the economic landscape. The city mandates annual increases until a specific target is reached, after which the rate adjusts based on the Consumer Price Index. This mechanism ensures that the wage keeps pace with inflation, preserving the purchasing power of low-income workers.
Year | Large Employers Rate | Small Employers Rate
2024 | $15.00 | $14.00
2025 | $15.50 | $14.50
Exemptions and Special Circumstances While the city law is comprehensive, there are specific exemptions that alter the application of the minimum wage. These exceptions are typically reserved for specific industries or unique employment arrangements where standard hourly tracking is not practical. Young workers: Employees under the age of 20 may be paid a training wage of $13.00 per hour for the first 90 consecutive calendar days of employment. Students: Full-time students in retail or service stores may be eligible for a wage rate of 85% of the standard minimum, provided they meet specific enrollment requirements. Small farm employers: Certain agricultural employers with low annual gross sales may be exempt from the municipal ordinance. How to Verify Your Pay
While the city law is comprehensive, there are specific exemptions that alter the application of the minimum wage. These exceptions are typically reserved for specific industries or unique employment arrangements where standard hourly tracking is not practical.
Young workers: Employees under the age of 20 may be paid a training wage of $13.00 per hour for the first 90 consecutive calendar days of employment.
Students: Full-time students in retail or service stores may be eligible for a wage rate of 85% of the standard minimum, provided they meet specific enrollment requirements.
Small farm employers: Certain agricultural employers with low annual gross sales may be exempt from the municipal ordinance.
