Minimum wages rise in Chicago, Cook County
(The Center Square) – Minimum wages have gone up for workers in Chicago and Cook County, but efforts to raise state and federal minimums remain on hold.
As of July 1, Chicago’s minimum wage is $17.05 per hour for employers with four workers or more, up from $16.60 the day before.
The $12.96 minimum for tipped workers remains in effect after the city council moved in May to pause a scheduled increase.
Cook County’s minimum wage increased from $15 to $15.40 on Wednesday, and the tipped minimum rose from $9 to $9.25.
National Federation of Independent Business Illinois State Director Noah Finley said minimum wage hikes impact small businesses’ ability to grow.
“Small businesses often have smaller margins, and raising the cost of labor puts additional pressure on them,” Finley said.
State Rep. Norma Hernandez, D-Melrose Park, and state Sen. Kimberly Lightford, D-Maywood, proposed raising the Illinois minimum incrementally to $27 per hour in 2032, with the initial $2 increase slated for July 1 of this year.
House Bill 5367 and Senate Bill 3821 stalled in the legislature this spring.
In April, Illinois U.S. Rep. Delia Ramirez, D-Chicago, introduced legislation to raise the national minimum wage to $25 by 2031 for large employers and by 2038 for smaller employers. Ramirez’ bill would also eliminate sub-minimum wages across the country.
Opponents argue that higher minimum wages result in fewer jobs and could trigger inflation.
An analysis of federal data by Clarify Capital found that Illinois restaurant wages rose 40.6% from 2019 to 2024.
Illinois Restaurant Association President and CEO Sam Toia said the Chicago restaurant industry is down 10,000 jobs from pre-pandemic levels.
“It’s really, really hard out here. I used to say before the pandemic, the restaurant industry was an industry of nickels and dimes. Now it’s turned into an industry of pennies and nickels,” Toia told The Center Square.
According to the NFIB Small Business Economic Trends Report for May 2026, 14% of small business respondents listed labor costs as their top problem, with only taxes and inflation ranking higher. The May percentage was up five points from April and higher than any previous reading in the survey’s history.
Finley said higher minimum wages put pressure on small business margins.
“Those are real costs that they are ultimately going to have to pass on to their customers, to consumers. In a time when small businesses are concerned about inflation, minimum wage increases are problematic,” Finley said.
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