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Chicago’s Mayor Proposes Quicker Minimum Wage Hike For Many, But Not All, Workers


Last week, Chicago Mayor Lori Lightfoot, announced her proposal for hourly workers in the city to earn $15/hour by 2021, four years sooner than the rest of the state.  However, this proposal would only see tipped workers in the city earning 60% of that.

Many readers are likely wondering what the specifics are of the Mayor’s proposal.  Let us take a closer look:


  • Chicago’s $13/hour minimum wage rate would rise to $14/hour on July 1, 2020 and then again to $15/hour in 2021. 
  • Further wage hikes would be guaranteed and tied to the consumer price index.  However, further wage hikes would be capped at 2.5%. 
  • Hourly workers under the age of 18 would be able to obtain a $15/hour wage more gradually, eventually reaching that wage rate by 2024. 
  • By 2025, the city would abolish the minimum wage exemption for teen workers. 
  • Employers with 20 or fewer employees would be given more time to raise their hourly pay rates, eventually reaching $15/hour by 2023.
  • Employers with 4 or fewer employees would be exempt. 

Some might wonder why the Mayor’s proposal would only minimally impact tipped workers.  The Mayor indicated these tipped workers were for the large part excluded from her proposal, out of concern for how it would impact small businesses.

Many Chicago politicians expressed concern over the fact that tipped workers would not benefit from this proposal, namely because poverty apparently plagues many tipped workers in the city.  (Only allowing these hourly workers to realize a 60% benefit of the proposal would therefore do little to help poverty rates in the city.)  While I do not think the Mayor’s proposal will ultimately be approved, I would expect this to be a stepping stone to helping hourly workers in the city see their wages increase before the rest of the state.  Whether tipped workers in the city can find their way into this, or another, proposal is likely the key thing to watch going forward.



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