Updates to Chicago employment laws take effect in July

At a glance

• Recent updates to several Chicago employment laws will take effect on July 1, 2025.

• The city’s minimum wage will increase to USD16.60 per hour for standard employees and USD12.62 for tipped workers.
• The Chicago Fair Workweek employee coverage thresholds will increase to USD32.60 per hour for hourly employees and USD62,561.90 per year for salaried employees (see updated Fair Workweek Notice).
• New payout requirements for medium employers will take effect. 'Medium Employers' (those with 51-100 covered employees) must pay out up to 56 hours of accrued and unused paid leave upon termination of employment.
• Chicago Office of Labor Standard employment posters have been updated. As a reminder, employers must post the most up-to-date minimum wage; fair workweek and paid leave; and paid sick leave posters, and provide written notices to covered employees each year by July 30, 2025 (and with the first paycheck to new hires).