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For purposes of this chapter, the following definitions apply:
"Construction industry" means any constructing, altering, reconstructing, repairing, rehabilitating, refinishing, refurbishing, remodeling, remediating, renovating, custom fabricating, maintenance, landscaping, improving, wrecking, painting, decorating, demolishing, and adding to or subtracting from any building, structure, highway, roadway, street, bridge, alley, sewer, ditch, sewage disposal plant, waterworks, parking facility, railroad, excavation or other structure, project, development, real property or improvement, or to do any part thereof, whether or not the performance of the work herein described involves the addition to, or fabrication into, any structure, project, development, real property or improvement herein described of any material or article of merchandise. Construction shall also include moving construction related materials on the job site to or from the job site, snow plowing, snow removal, and refuse collection.
"Covered Employee" means an Employee who, in any particular two-week period, performs at least two hours of work for an Employer while physically present within the geographic boundaries of the City. For purposes of this definition, time spent traveling in the City that is compensated time, including, but not limited to, deliveries, sales calls, and travel related to other business activity taking place within the City, shall constitute work while physically present within the geographic boundaries of the City; however, time spent traveling in the City that is uncompensated commuting time shall not constitute work while physically present within the geographic boundaries of the City.
"Covered Employee" does not include any individual permitted to work:
(a) as a camp counselor employed at a day camp if the camp counselor is paid a stipend on a one time or periodic basis and, if the camp counselor is a minor, the minor's parent, guardian or other custodian has consented in writing to the terms of payment before the commencement of such employment;
(b) while subject to subsection 4(a)(2) of the Minimum Wage Law, with the exception of the categories of Employees described in subsections 4(a)(2)(A) and 4(a)(2)(B) of the Minimum Wage Law, who shall be entitled to the Wages that their Employer shall otherwise pay under Section 6-105-020(b) and 6-105-030 above, whichever applies, as well as the overtime compensation described in Section 6-105-040; and
(c) for any governmental entity other than the City and its Sister Agencies.
(d) (i) All Domestic Workers, including Domestic Workers employed by Employers with fewer than four Employees, shall be Covered Employees.
(ii) in any of the following categories: (A) as an outside salesman; (B) as a member of a religious corporation or organization; (C) at, and employed by, an accredited Illinois college or university at which the individual is a student who is covered under the Fair Labor Standards Act, as amended; (D) for a motor carrier and with respect to whom the U.S. Secretary of Transportation has the power to establish qualifications and maximum hours of service under the provisions of Title 49 U.S.C. or the State of Illinois under Section 18b-105 (Title 92 of the Illinois Administrative Code, Part 395 - Hours of Service of Drivers) of the Illinois Vehicle Code.
Except as provided in (d)(i), “Covered Employee” does not include any individual permitted to work for an Employer who has fewer than four Employees.
“Employee” means an individual that performs work for an employer in the capacity of an employee, as distinguished from a contractor, determined pursuant to Internal Revenue Service guidelines.
“Employer” means a person who gainfully employs at least one Employee. For the purpose of counting Covered Employees for Section 6-105-020, numbers of Covered Employees will be aggregated if they are employed by members of a single unitary business group as defined for Illinois income tax purposes.
“Fair Labor Standards Act” means the United States Fair Labor Standards Act of 1938, 29 U.S.C. § 201, et seq., as currently in force and hereafter amended.
“Gratuities” and “Occupation” have the meanings ascribed to those terms in the Minimum Wage Law.
“Minimum Wage Law” means the Illinois Minimum Wage Law, 820 ILCS 105/1, et seq.
“Outside salesman” means an Employee regularly engaged in making sales or obtaining orders or contracts for services where most of such duties are performed away from his employer’s place of business.
“Sister Agency” means the Chicago Public Schools, the Chicago Park District, the Chicago Transit Authority, the City Colleges of Chicago, the Chicago Housing Authority, and the Public Building Commission.
"Subsidized Temporary Youth Employment Program" means any publicly subsidized summer or other temporary youth employment program through which persons aged 24 or younger are employed by, or engaged in employment coordinated by, a nonprofit organization or governmental entity.
"Subsidized Transitional Employment Program" means any publicly subsidized temporary employment program through which persons with unsuccessful employment histories and/or members of statistically hard-to-employ populations (such as formerly homeless persons, the long-term unemployed, and formerly incarcerated persons) are provided temporary paid employment and case-managed services under a program administered by a nonprofit organization or governmental entity, with the goal of transitioning program participants into unsubsidized employment.
"Tipped Employee" has the meaning ascribed that term in the Fair Labor Standards Act.
(Added Coun. J. 6-25-21, p. 32156, § 5; Amend Coun. J. 12-15-21, p. 42668, § 6; Amend Coun. J. 11-9-23, p. 5853, § 7; Amend Coun. J. 12-13-23, p. 7601, §§ 4, 18; Amend Coun. J. 3-20-24, p. 10146, § 7)
No person engaged in any business within the city shall issue, in payment of or as evidence of indebtedness for wages due an employee for labor, any acknowledgement of indebtedness, including but not limited to scrip, time checks or store orders, unless such evidence of indebtedness is payable or redeemable upon demand, without discount and for face value in lawful money of the United States at the office or place of business of such person.
(Added Coun. J. 6-25-21, p. 32156, § 5; Amend Coun. J. 12-15-21, p. 42668, § 1)
Editor's note – Formerly § 6-100-010.
(a) Except as provided in Section 6-105-030 of this Code, every Employer shall pay to each Covered Employee for each hour of work performed for that Employer, no less than the greater of: (1) the minimum hourly Wage set by the Minimum Wage Law; (2) the minimum hourly Wage set by the Fair Labor Standards Act; or (3) the City's minimum hourly Wage.
(b) The City minimum hourly Wage shall be as follows:
(1) For Employers who have 21 or more Employees, or is a Domestic Worker:
(A) Beginning on July 1, 2020, $14.00 per hour.
(B) Beginning on July 1, 2021, $15.00 per hour.
(C) Beginning on July 1, 2022, and on every July 1 thereafter, the City's minimum hourly Wage from the previous year, increased in proportion to the increase, if any, in the CPI, provided, however, that if the CPI increases by more than 2.5 percent in any year, the City minimum Wage increase shall be capped at 2.5 percent, and that there shall be no City minimum Wage increase in any year when the unemployment rate in Chicago for the preceding year, as calculated by the Illinois Department of Employment Security, was equal to or greater than 8.5 percent. Any increase pursuant to this subsection shall be rounded up to the nearest multiple of $0.05. Any increase pursuant to subsection 6-105-020(b) shall remain in effect until any subsequent adjustment is made.
(2) For Employers who have more than 3, but fewer than 21 Employees:
(A) Beginning on July 1, 2020, $13.50 per hour.
(B) Beginning on July 1, 2021, $14.00 per hour.
(C) Beginning on July 1, 2022, $14.50 per hour.
(D) Beginning on July 1, 2023, $15.00 per hour.
(E) Beginning on July 1, 2024, the Wage will be the same as for subsection (b)(1)(C) Covered Employees.
(3) For Subsidized Temporary Youth Employment Programs, for Subsidized Transitional Employment Programs, for Covered Employees who are under 18 years of age, and those subject to Section 6 of the Minimum Wage Law:
(A) Beginning on July 1, 2020, $10.00 per hour.
(B) Beginning on July 1, 2021, $11.00 per hour.
(C) Beginning on July 1, 2022, $12.00 per hour.
(D) Beginning on July 1, 2023, $13.50 per hour.
(E) Beginning on July 1, 2024, $15.00 per hour.
(F) Beginning on July 1, 2025, the Wage shall rise by the lesser of $ 1.50 or the Wage set by subsection (b)(1)(C). This increase shall occur every year until the Wage is the same as the Wage set by subsection (b)(1)(C), after which the Wage will continue being the same as for subsection (b)(1)(C) Covered Employees.
(4) Sister Agencies shall be subject to the Wage requirements in subsection (b)(1) beginning on July 1, 2021.
(5) An Employer in possession of a special license issued by the Director of Labor described by Section 5 of the Minimum Wage Law, or in possession of a federal certificate that the United States Department of Labor issues to a work activities center or other sheltered workshop to allow the work activities center or sheltered workshop to pay an individual less than the wage otherwise required for that individual under the Fair Labor Standards Act, shall be subject to the Wage requirements in subsection (b)(1) as to those Covered Employees beginning on July 1, 2024.
(c) On or before June 1, 2022, and on or before every June 1 thereafter, the Commissioner shall make available to Employers a bulletin announcing the adjusted minimum hourly Wage for the upcoming year.
(Added Coun. J. 6-25-21, p. 32156, § 5; Amend Coun. J. 10-27-21, p. 39525, § 9)
(a) Every Employer of a Covered Employee engaged in an Occupation in which Gratuities have customarily constituted part of the remuneration is entitled to an allowance for gratuities as part of the hourly wage rate provided in Section 6-105-020(b) in an amount not to exceed:
(1) 40 percent of the applicable minimum wage rate until July 1, 2024.
(2) 32 percent of the applicable minimum wage rate on and after July 1, 2024, until and including June 30, 2025.
(3) 24 percent of the applicable minimum wage rate on and after July 1, 2025, until and including June 30, 2026.
(4) 16 percent of the applicable minimum wage rate on and after July 1, 2026, until and including June 30, 2027.
(5) 8 percent of the applicable minimum wage rate on and after July 1, 2027, until and including June 30, 2028.
(6) On and after July 1, 2028, an employer shall not be entitled to an allowance for gratuities and shall pay each Covered Employee no less than the applicable minimum wage rate.
(b) Every Employer that pays a Covered Employee the Wage described in subsection (a) shall transmit to the Commissioner, in a manner provided by rule, substantial evidence establishing: (1) the amount the Covered Employee received as Gratuities during the relevant pay period; and (2) that no part of that amount was returned to the Employer. If an Employer is required by the Minimum Wage Law to provide substantially similar data to the Illinois Department of Labor, the Commissioner may allow the Employer to comply with this subsection (b) by filing a copy of the state documentation.
(c) The Commissioner shall make available to Employers a bulletin announcing the City's minimum hourly Wage for the upcoming year for workers who receive Gratuities.
(Added Coun. J. 6-25-21, p. 32156, § 5; Amend Coun. J. 10-6-23, p. 3924, § 1)
(Added Coun. J. 6-25-21, p. 32156, § 5)
Editor’s note – Coun. J. 12-13-23, p. 7601, § 3, renumbered this section pertaining to wage theft as § 6-100-050.
Nothing in this chapter shall be deemed to interfere with, impede, or in any way diminish the right of Employees to bargain collectively with their Employers through representatives of their own choosing in order to establish wages or other conditions of work in excess of the applicable minimum standards of the provisions of this chapter. The minimum wage requirements of this chapter may be waived in a bona fide collective bargaining agreement, but only if the waiver is set forth explicitly in such agreement in clear and unambiguous terms. Nothing in Section 6-105-045 shall be deemed to affect the validity or change the terms of bona fide collective bargaining agreements in force on July 1, 2017. After that date, requirements of Section 6-105-045 may be waived in a bona fide collective bargaining agreement, but only if the waiver is set forth explicitly in such agreement in clear and unambiguous terms. In no event shall Section 6-105-045 apply to any Employee working in the construction industry who is covered by a bona fide collective bargaining agreement.
(Added Coun. J. 6-25-21, p. 32156, § 5)
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