July 1, 2026: Chicago Wage and Fair Workweek Changes
By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director of Total Rewards and People Analytics
Published June 9, 2026
Employers in the Chicago area should prepare for minimum wage and other adjustments effective July 1, 2026: the annual increase to the City of Chicago minimum wage, a separate increase to the Cook County minimum wage, and an increase in the compensation metrics for the Fair Workweek Ordinance.
City of Chicago
Effective July 1, 2026, the Chicago minimum wage for employers with four or more employees increases from $16.60 to $17.05 per hour. The tipped minimum wage increases from $12.62 to $12.96 per hour. If the tipped wage plus tips does not equal the full minimum wage in effect, the employer must make up the difference.
Additionally, on July 1, 2026, the Fair Workweek Ordinance has updated compensation thresholds. This Ordinance covers employees who work in one of seven covered industries (building services, healthcare, hotel, manufacturing, restaurant, retail, and warehouse services) and earn less than or equal to $33.85/hour or $64,945.55/year. The ordinance covers employers who have 100 or more employees globally. (250 employees and 30 locations for restaurants). The Fair Workweek Ordinance is a predictive scheduling law designed to provide covered employees with more stable and predictable schedules, along with extra pay when schedules change unexpectedly.
Cook County
Effective July 1, 2026, the Cook County minimum wage increases from $15.00 to $15.40 per hour for non-tipped workers and from $9.00 to $9.25 per hour for tipped workers. The Cook County ordinance covers employers with four or more employees that maintain a facility in Cook County or hold a Cook County business license.
Importantly, the Cook County ordinance does not apply within the City of Chicago, which sets its own higher minimum wage, and it does not apply within Cook County municipalities that have opted out of the minimum wage ordinance. The list of municipalities that do not follow the minimum wage ordinance changes frequently. Please check with the local city, township, or village to confirm whether the minimum wage ordinance applies within your specific municipality.
As a reminder, these changes must be in place on or before July 1, 2026, and you should communicate any pay change in writing before it takes effect. Both Chicago and Cook County require covered employers to post the updated minimum wage notice and to provide written notice of the current rates to covered employees - in Chicago, no later than 30 days after July 1, 2026, and in Cook County, with the first paycheck issued after the change and at least annually thereafter.
More details, including copies of the mandatory employer postings, are available on the City of Chicago's website and the Cook County Commission on Human Rights website.
HR Source members with questions are encouraged to contact us through the HR Hotline Online or at 800-448-4584.