Summary of July 2025 Labor Law Updates for Chicago, Illinois
This monthly roundup brought to you by the Chicago team from HKM employment attorneys highlights significant legal developments in Illinois affecting wage standards, scheduling, paid leave, staffing, and protections impacting employers and employees alike.
July 2025 brings key updates, especially for Chicago-area employers: changes to wage thresholds and minimum wage, new requirements on paid leave, and further protections under state law. Employers statewide—from staffing agencies to residential facilities—should take note to stay compliant. If you have questions or need legal assistance with any of these developments, feel free to contact HKM Employment Attorneys (https://hkm.com). Our Illinois team is here to help with compliance strategies, handbook updates, and trainings.
Fair Workweek Ordinance — City of Chicago Adjustment (Local Ordinance)
Date Effective: July 1, 2025
Summary: As of July 1, the wage thresholds defining “covered employees” under the Chicago Fair Workweek Ordinance increased. The hourly threshold rose to $32.60; the annual threshold is now $62,561.90. Employers must adjust payroll classifications and ensure that those now under these thresholds receive advance scheduling notice and predictability pay as required.
Implications: Affects Chicago employees in covered industries earning up to the adjusted thresholds. Employers must update internal rosters and notice postings, and distribute the revised Fair Workweek Notice to employees.
Chicago Minimum Wage & Tipped Wage Increase (Local Ordinance)
Date Effective: July 1, 2025
Summary: Chicago’s minimum wage increased to $16.60 per hour for standard workers, and tipped workers now must receive at least $12.62 per hour.
Implications: Salaries must be updated accordingly for all affected employees. Employers should update job postings, payroll, and employee materials immediately.
Chicago Paid Leave Ordinance — New Payout Requirements & Private Right of Action
Date Effective: July 1, 2025
Summary: Medium-sized employers (51–100 covered employees) must now pay out accrued unused paid leave upon separation—previously required only for large employers. Also, employees now have a private right of action for violations, with a 16‑day cure period (effective July 1, 2025–June 30, 2026).
Implications: Medium employers need to update termination protocols. All covered employers should review leave policies to reduce liability risk. Employee handbooks and onboarding materials must reflect new rights.
Conclusion: Looking Back on Illinois Labor Law Updates from July 2025
If recent Illinois rulings on wrongful termination, wage theft, or discrimination have you rethinking your legal options, know that support is just a phone call away. At HKM Employment Attorneys in Chicago, our fearless attorneys have recovered over $250 million for clients since 2003 and regularly take on complex cases involving breach of contract, hostile work environments, and EEOC claims—backed by Super Lawyers and top‑tier recognition. We offer clear communication, strategic advocacy, and no-fee-unless-we-win representation. If recent case developments have struck a chord, reach out to our Chicago office to explore how we can stand with you and secure your workplace rights.
