Chicago residents and workers will benefit from several changes starting July 1, corresponding to an increase in the minimum wage, paid sick leave and new driver’s licenses for undocumented immigrants.
According to Mayor Brandon Johnson’s office, the minimum wage increase, implementation of the Paid Leave and Paid Sick Leave Ordinance, and Paid Safe Leave will go into effect on July 1.
Likewise, that same day, the law HB 3882, signed by Governor JB Pritzker in June 2023, will come into effect, which establishes that the new driver’s licenses for undocumented immigrants count as valid identification in the state, in compliance with the federal REAL Law. ID.
Here’s what to expect starting July 1 with the following changes:
INCREASE IN THE MINIMUM HOURLY WAGE IN CHICAGO
The minimum hourly wage in Chicago will increase from $15.80 to $16.20 for employers with 21 or more workers and from $15 to $16.20 for employers with 20 or fewer workers, eliminating tiered wages for large and small businesses.
Since increasing to $15 in 2021, the minimum hourly wage increases annually based on changes in the Consumer Price Index or at a rate of 2.5%, whichever is lower, according to Johnson’s office.
Additionally, the minimum hourly wage will be subsidized for youth programs, with the minimum wage for subsidized transitional employment programs set at $15.
SALARY WITH PROPOSALS
As part of the One Fair Wage ordinance, the wage credit for tipped workers will be phased out over a five-year period.
Wages for tipped workers, such as restaurant servers, bartenders and bartenders, who currently earn a minimum hourly wage of $11.02, will see an 8% annual increase until they reach parity with the standard minimum wage of the city on July 1, 2028.
PAID SICK LEAVE
Additionally, Chicago’s Paid Leave and Paid Sick and Safe Leave ordinance, originally passed in November 2023, will also go into effect on July 1.
Under the measure, all Chicago employees who work at least 80 hours within any 120-day period are guaranteed up to five days of paid leave and five days of paid sick leave.
Paid leave requirements state the following:
- Employees accrue at a rate of 1 hour of paid leave for every 35 hours worked (up to 40 hours in a 12-month period).
- Employees must be allowed to use accrued paid leave no later than the 90th day after the start of employment
- Employees can carry over up to 16 hours between 12-month periods (if paid leave is not used all at once).
- Employees can use paid leave for any reason
The paid sick and safe leave requirements state the following:
- 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 the 30th day after the start of employment
- Employees can transfer up to 80 hours between 12-month periods
- Employees can use paid sick leave for medical and safety reasons
The Fair Workweek Ordinance will also include updated compensation metrics effective July 1.
Employees are covered by the ordinance if they work in one of seven “covered” industries, which include the following:
- Construction services
- Health care
- Hotels
- Manufacture
- Restaurants
- retail
- Warehouse services
Additionally, employees must earn less than $31.85 per hour or less than $61,149.35 per year and if the employer has at least 100 employees globally.
If you operate a restaurant, there must be 250 employees and 30 locations.
The ordinance requires certain employers to provide workers with “predictable work schedules and compensation for changes.”
STANDARD UNDOCUMENTED DRIVING LICENSES
Starting July 1, the new driver’s licenses will replace the existing Temporary Visitors Licenses (TVDLs) that were valid for three years and had a purple stripe and the phrase “Not valid for identification.”
The new driver’s licenses will be valid for four years and to obtain them you must go to an Illinois DMV office. In addition, a practical and written driving test should be taken.
To find out what requirements are needed to obtain a driver’s license for undocumented immigrants in Illinois, you can go to this link.
