Chicago businesses must comply with several labor law changes beginning July 1. These updates affect minimum wage, paid leave, and predictable scheduling. Here’s what you need to know:

Minimum Wage Increases

• Businesses with 4 or more employees:
• $16.60/hour (non-tipped)
• $12.62/hour (tipped)
• Businesses with fewer than 4 employees: Follow Illinois State Minimum Wage ($15/hour, $9 tipped).
• Youth workers: $16.50/hour (or $13 if under 4 employees).
• This is Year 2 of phasing out the tipped wage (to be eliminated by July 2028).

Paid Leave & Paid Sick Leave

• Applies to employees working 80+ hours in a 120-day period within Chicago.
• Employees earn 1 hour of Paid Leave and 1 hour of Paid Sick Leave for every 35 hours worked.
• Up to 16 hours of Paid Leave and 80 hours of Sick Leave may carry over each year.
• Employers with 51 or more covered employees must pay out up to 56 hours of Paid Leave upon termination.
• Employers must show leave balances on pay stubs and keep records for at least 5 years.
• Employees can file private lawsuits for violations occurring on or after July 1, 2025.

Fair Workweek (Predictable Scheduling)

• Applies to employees in 7 covered industries (retail, restaurants, healthcare, etc.) earning $32.60/hour or less, or $62,561.90/year or less.
• Covered employers: 100+ employees (250+ for nonprofits) and 50+ covered workers.
• Schedules must be provided at least 14 days in advance.
• Changes made with less than 14 days' notice may require extra compensation (predictability pay).

City Notices

Employers must post the below informational posters at their place of business to be compliant with city and state labor laws. In addition, city public notices must be provided to all covered employees annually within 30 days of July 1st with the employee's first paycheck in the manner they receive them (digitally or physically). Public notices are available for download in 12 languages online and should be provided to employees in their preferred language of choice.

Download Here

Starting and growing a business is tough especially when legal hurdles stand in the way. That’s where LANE (Legal Aid Chicago’s Neighborhood Entrepreneur Law Project) comes in. LANE provides free transactional legal services to help local entrepreneurs build a strong foundation and protect their businesses.

LANE can assist with:

• Business formation (LLCs, partnerships, etc.)
• Commercial lease review
• Contract drafting and negotiation
• Employment compliance
• Intellectual property and trademarks

LANE works with income-eligible small businesses and solo entrepreneurs who would not otherwise have access to legal help.

Apply for assistance: lanechicago.org/legal_help

Partner with LANE

If you support small business owners or aspiring entrepreneurs, LANE would love to collaborate with you. Opportunities include:

• Referring eligible clients
• Co-hosting legal info sessions or clinics
• Sharing resources with your network

To learn more or make a referral, visit lanechicago.org. Let’s work together to ensure every entrepreneur gets the support they need.

The Lincoln Square Neighborhood Improvement Program is running a rebate program for property owners looking to install new security cameras onto the public way. Below are program details. The application can be found here.

• Who’s Eligible: Businesses and property owners within SSA #21 boundaries (see map to the right).
• Rebate Amount: Up to 50% of the total cost of security camera purchase and installation, capped at $1,000 in total for the rebate.
• Program Goal: Enhance public safety and deter crime by encouraging businesses and property owners to install security cameras.
• Application Requirements: Submission of a completed application with itemized receipts, proof of payment, and a photo of the installed camera(s).
• How to Apply: Access the full application and requirements through the provided PDF link or contact the SSA #21 team for assistance. 

This is a limited-time opportunity, so consider upgrading your property’s security while saving on costs. Please reach out to Ian Tobin with any questions at ian@lincolnsquare.org