2026 Illinois Midyear Roundup
The following changes to Chicago and Cook County employment laws take effect on July 1, 2026, and apply to employers of all sizes, unless otherwise noted.
Local Minimum Wage Increases
Chicago
For employers with four or more employees, the minimum hourly wage will increase to $17.05. The minimum hourly base wage for tipped employees will increase to $12.96. The Chicago Office of Labor Standards announced the upcoming increases in a public notice on its website.
Cook County
The minimum hourly wage will increase to $15.40. The minimum hourly base wage for tipped employees will increase to $9.25. The Cook County Commission on Human Rights announced the upcoming increases in a public notice on its website.
Chicago Fair Workweek
Coverage Threshold Increase
The threshold for coverage under the Fair Workweek Ordinance will increase to $64,945.55 per year (if salaried) or $33.85 per hour (if paid hourly). You can find more information about the ordinance, including which employers are covered, here.
Recent Update to Fair Workweek Rules
Chicago’s amended Fair Workweek rules were finalized on May 15, 2026. Starting June 1, 2026, updated rules for Chicago’s Fair Workweek ordinance will take effect. The ordinance generally applies to employers in designated industries (i.e., healthcare and retail) that have 100+ employees.
The changes include newly defined terms, clarifications, technical changes, and substantive updates. Some key updates are as follows:
Employer size, which determines coverage under the ordinance, must be calculated by counting the average number of global employees during a 12-month period.
Work schedules will need to include the dates that they’re provided or posted.
An employee’s regular rate for purposes of calculating predictability pay shouldn’t include overtime, holiday pay, or other premium rates, with one limited exception, for differentials for working under different conditions, such as nights or weekends.
Predictability pay won’t count as an hour of work for the accrual of paid sick leave or paid leave.
Predictability pay won’t be required for any shifts accepted through an employer’s offer of additional work.
When additional shifts are available, employers will be required to provide covered employees with a written notice of the available work and include specific information, such as the location, time, and required qualifications.
Employers will need to retain additional records.
You can review all the updated rules here.