EMPLOYMENT LAW NEWS
Cook County and Chicago Announce Minimum Wage Increases for July 1, 2026
By Dana Holle, GovDocs Counsel and Manager Employment Law and ComplianceJune 2, 2026
Beginning July 1, 2026, Cook County and Chicago minimum wages increase to $15.40 and $17.05 per hour respectively, with both jurisdictions requiring updated postings and annual employee notice from covered employers.
July 1, 2026 Minimum Wage Update for Cook County and Chicago
Beginning July 1, 2026, Cook County’s minimum wage increases to $15.40 per hour while Chicago’s minimum wage increases to $17.05 per hour.
Background on Cook County’s Minimum Wage Ordinance
The Cook County Board of Commissioners originally passed the Cook County Minimum Wage Ordinance (MWO) on Oct. 26, 2016. The MWO first raised the minimum wage to $10.00 per hour on July 1, 2017. Then, the minimum wage incrementally increased every year until it reached $13.00 on July 1, 2020. In the years since, Cook County’s wage requirements continue to adjust annually in proportion to the increase in the Consumer Price Index for All Urban Consumers, capped at 2.5%. The Cook County Commission on Human Rights is required to issue a notice by June 1st announcing the updated wage rates that will take effect the next month.
Accordingly, on June 1, 2026, Cook County announced the minimum wage update on July 1, 2026, to $15.40 for non-tipped workers and $9.25 for tipped employees.
Cook County’s Minimum Wage Requirements
The MWO applies to employees who work two hours in a two-week period for a covered employer who meets the following:
- Employs four or more employees or a domestic worker; and
- Maintains a business facility located within the geographic boundaries of Cook County or is issued a business license by Cook County
Notably, Cook County’s minimum wage provisions do not apply to workplaces located in a municipality that has opted out of the MWO or has passed their own minimum wage law, such as Chicago. Over 80% of Cook County municipalities have opted out of the county’s minimum wage requirements.
Finally, the MWO does not apply to employees under the age of 18 years old. However, employers should be aware of the state minimum wage requirements for certain minors under the Illinois Minimum Wage Act, as that rate is currently set at $15.00 per hour.
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Background on Chicago’s Minimum Wage Ordinance
Chicago’s Minimum Wage Ordinance originally went into effect on July 1, 2015, gradually raising the Windy City’s minimum wage till it hit $13.00 in 2019. Following several other cities and the Fight for $15 movement, Chicago’s City Council amended the Minimum Wage Ordinance to implement a new wage schedule so that Chicago hit the $15 threshold by July 1, 2021, for large employers and July 1, 2023, for small employers. In the years since, the minimum wage is adjusted annually in proportion to the increase, if any, in the CPI and capped at 2.5%.
On May 27, 2026, Chicago updated its Labor Standards Notice announcing that the city’s minimum wage will increase to $17.05 on July 1, 2026. The based wage for tipped workers will also increase to $12.96 on July 1, 2026.
Chicago has been entwined in a tense tipped wage debate between its Mayor and City Council. Back in 2023, Chicago City Council passed an ordinance championed by Mayor Johnson to phase out the tipped wage. But in 2026, the Chicago City Council voted to halt the phaseout on the city’s tip credit elimination. Mayor Johnson subsequently vetoed the bill, which the City Council failed to override on April 15.
On May 20, 2026, however, Chicago’s City Council passed yet another measure to delay the phase out of the tipped wage. Now, the tip credit will remain at 24% of the applicable minimum wage rate through June 30, 2028.
Chicago’s Minimum Wage Requirements
Chicago’s minimum wage applies to employers with four or more covered employees. Employees are covered under the Minimum Wage Ordinance if they perform at least two hours of work in a two-week period within the geographic boundaries of Chicago.
Previously, there were two separate minimum wage schedules for large employers (21 or more employees) and small employers (4-21 employees). However, as of July 1, 2025, the minimum wage schedules are increasing at the same rate.
Chicago Tip Credit Phaseout Schedule for Large Employers
Under the new measure on tipped wages, Chicago’s new tip credit phaseout schedule for large employers (21 or more employees) is as follows:
| Date | Tip Credit |
|---|---|
| July 1, 2025 | 24% |
| July 1, 2028 | 16% |
| July 1, 2029 | 8% |
| July 1, 2030 | No tip credit |
Cook County and Chicago Notice & Posting Requirements
In Cook County, covered employers are required to provide employees with notice, specifically with their first paychecks and at least once per calendar year thereafter, of the current minimum wage rates and their rights under the MWO. Chicago similarly requires notice with first paychecks and annually within 30 days of July 1, advising employees of the current minimum wage and human trafficking resources.
In addition, covered employers in Chicago and Cook County must also display an updated minimum wage poster. GovDocs will ship updated posters to impacted customer locations as part of our Labor Law Poster Program.
Managing Minimum Wage Rates in Cook County and Chicago
Cook County is one of, if not the most, complex minimum wage counties in the United States. For that reason, employers must be cognizant of where their locations are geographically situated in the county, whether their locations are in areas that have opted out of the county minimum wage requirements, and if the state or a local minimum wage, like Chicago, applies instead.
For employers looking to simplify minimum wage management and easily determine location-specific wage rates in areas like Chicago and Cook County, check out GovDocs Minimum Wage.
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
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