Chicago’s Minimum Wage in 2020 and Beyond: What You Need to Know

In Chicago, the minimum wage in 2020 was $14 per hour for businesses with 21 or more employees and $13 per hour for those with 4 to 20 employees. This was an increase from the minimum wage of $13.00 for large businesses and $12.00 for small firms from the prior year. The hike was a part of an overall strategy to raise Chicago’s minimum wage to $15.00 per hour by 2021.

Chicago’s minimum wage will increase to $15.00 per hour on July 1st, 2021, for all workers, regardless of the size of the firm. The COVID-19 pandemic caused a delay in this increase, which was initially scheduled to take place in 2020. The minimum wage of $15.00 per hour will be examined yearly and, if required, raised to account for inflation.

It’s important to keep in mind that the minimum wage in Chicago varies depending on whether an employee receives tips or not. For tipped employees, the minimum wage in 2020 was $6.40 per hour plus tips. By 2021, this will rise to $9.00 per hour plus tips.

Beyond Chicago, the hourly minimum wage in Skokie, Illinois is now $12.00 for businesses with 21 or more employees and $11.00 for those with 4 to 20 employees. Skokie has a proposal to progressively raise the minimum wage to $15.00 per hour by 2022, which is higher than Chicago’s minimum pay.

The minimum wage in the state of Illinois is now $11.00 per hour, however it will rise to $12.00 per hour on January 1st, 2022. The goal is to steadily increase Illinois’ minimum wage until it reaches $15.00 an hour by 2025.

In conclusion, in Chicago the minimum wage in 2020 was $14.00 for large firms and $13.00 for small employers. The Chicago minimum wage will increase to $15.00 per hour on July 1st, 2021, and will be increased annually for inflation. While the state of Illinois intends to progressively raise the minimum wage to $15.00 per hour by 2025, Skokie, Illinois has its own plan to raise the minimum wage to $15.00 per hour by 2022.