Labor & Employment Law Update

Employers with operations in Chicago and Cook County should prepare for local minimum wage increases effective July 1, 2026, along with related notice, posting, and compliance obligations. While the Illinois statewide minimum wage remains unchanged, Chicago and Cook County will implement higher local rates that apply based on employer size and location.

Chicago and Cook County Minimum Wage Increases

The city of Chicago is increasing its set minimum wage on July 1, 2026, for employers with four or more employees. Cook County’s minimum wage will also increase on July 1, 2026.

All minimum wage increases effective July 1, 2026, for the Chicago and Cook County are indicated in the following chart, which also provides a full picture of the minimum wage increases applicable to all Illinois employers that are set to go into effect in 2026:  

* Effective July 1, 2026, the minimum wage to be paid under city of Chicago contracts or concessionaire agreements is increasing from $17.80 to $18.50 per hour for non-tipped employees and from $12.62 to $12.96 per hour for tipped employees.

Employer Compliance Reminders

Mileage Reimbursement

On January 1, 2026, the IRS standard mileage rate used by employers to reimburse for travel increased from 70 cents to 72.50 cents per mile. While businesses are not required to use the IRS standard mileage rate when reimbursing for travel, many do.  Employers using the IRS standard mileage rate should update their system to reflect the new rate as of January 1, 2026.

Poster and Written Notice Requirements

Remember to update your posters AND provide written notices to employees!  

Under Chicago’s rules, employers have to post the most up-to-date minimum wage and paid leave and paid sick leave posters and provide written notices to covered employees each year with the first paycheck after July 1, whether by paper or electronic means. The city of Chicago posters for minimum wage and paid leave and paid sick leave can be found on the city’s website in English, Spanish, Mandarin, Tagalog, and Korean.

The Cook County website has posters for minimum wage and paid leave in English, Spanish, Polish, Chinese, Arabic, Filipino, and Urdu.

The Illinois Department of Labor has its posters for minimum wage and paid sick leave on its website in English, Spanish, and Polish.

New Rules for Chicago’s Paid Leave and Paid Sick and Safe Leave Ordinance

Chicago issued revised rules impacting the city’s Paid Leave and Paid Sick and Safe Leave Ordinance that went into effect on June 1, 2026.

Updated Compensation Metrics for Chicago’s Fair Workweek Ordinance

Chicago's Office of Labor Standards finalized and published revised rules implementing the Fair Workweek Ordinance. Effective July 1, 2026, the ordinance will include updated compensation metrics. It requires certain employers to provide workers with predictable work schedules and compensation for changes.  

Employees will be covered by the ordinance if:

• They work in one of seven “covered” industries (building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services);
• They earn less than or equal to $33.85/hour or earn less than or equal to $64,945.55/year; and
• The employer has at least 100 employees globally (250 employees and 30 locations if operating a restaurant).