On July 1, 2017, Cook County’s minimum wage increased to $10.00 per hour for non-tipped employees and $4.95 for tipped employees. Chicago’s new minimum wage increased to $11.00 per hour for non-tipped and $6.10 for tipped employees.
All employers that maintain a business facility within the geographic boundaries of Chicago and/or are subject to one or more of the license requirements in Title 4 of the Municipal Code of Chicago are covered by Chicago’s Minimum Wage Ordinance. Starting July 1st, these employers must display applicable posters and include a copy of Chicago’s Minimum Wage Poster with the first paycheck issued after July 1st to each employee that is subject to the Ordinance.
Employers who fail to comply with the Ordinance are subject to a fine of $500.00 to $1,000.00 per day for each offense that is not corrected, and may also face potential license suspension or revocations and an order to pay restitution to underpaid employees. Additionally, employees can pursue a private cause of action to recover triple the amount of the underpayment, attorney fees and costs.
Employers who fall within the scope of these geographic boundaries should audit their pay practices and ensure that they are in compliance with the new regulations.