Minimum Wage Increase for Illinois as of January 1, 2023

Chicago & Cook County Minimum Wage Rates

Please Note: Both Chicago and Cook County have different minimum wage rates in comparison to the rest of the state of Illinois.

Chicago

• In Chicago, the current 2023 minimum wage for non-tipped workers is $15.40 an hour for businesses that employ 21 or more workers, and $14.50 an hour for businesses that employ 4 – 20 employees.
• The current minimum wage for tipped workers is $9.24 an hour for businesses that employ 21 or more workers, and $8.70 for businesses that employ 4 – 20 employees. Should the employee make less in tips than the applicable minimum wage, then the employer must make up the difference.

Cook County

• In Cook County, the current 2023 minimum wage is $13.35 an hour for non-tipped workers, and $7.40 an hour for tipped workers.
• The minimum wage ordinance does not apply to employees under the age of 18 years. The Illinois Minimum Wage Act does require teenage workers to be paid a minimum wage of $10.50 per hour with annual increases.

If you are an employer within the Chicago city limits, you should be reviewing your current payroll setup to verify you are complying with the city guidelines regarding these new minimum wage requirements. In general, with the increase, if you are not already paying your employees above the new minimum wage requirements, you can expect to see your payroll costs immediately rise in accordance with these changes.