On July 1, 2016, the minimum wage in the City of Chicago increased once again to $10.50. The increase is part of the Chicago Minimum Wage Ordinance's annual process of phasing-in increases until the the city minimum wage reaches $13.00 per hour in 2019. As a result, employees who work overtime in the city are now entitled to be paid at a rate of $15.75 per hour.
Tipped employees also stand to benefit from the increase as well. Under the ordinance, tipped employees who are paid using a tip credit must be paid at least $5.95 per hour plus tips. An employee's total wages and tips must equal or exceed the minimum wage of $10.50 per hour in order to satisfy the law.
In July of 2017, the minimum wage is set to increase again to $11.00 per hour, but the 2017 direct wage rate for tipped employees is yet to be determined.
In order to be covered by the city ordinance, an employee must spend at least two hours of work in any two-week period in the City of Chicago. Any non-exempt employee must receive minimum wages and overtime wages for work performed within the the city.
Contact us today to learn more about your rights under the Chicago Minimum Wage Ordinance. Eligible employees may recover treble damages (three times the amount of unpaid minimum wages and overtime) plus their attorneys’ fees and costs.
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