On July 1, 2019, the minimum wage will increase in several locations throughout the country. While the federal minimum wage has remained $7.25 per hour since July 2009, many states, cities and counties have adopted their own minimum wage laws which provide for a higher rate. In areas where minimum wage laws overlap, employees are entitled to receive the highest applicable rate.

The following minimum wage increases will become effective July 1, 2019: Multi-state employers: Be prepared for July 1 minimum wage increases – Lexology

And here’s the info specific to Chicago — remember that there is an exemption for employees working at a business with three or fewer employees (not counting the employer’s parents, spouse, children or other members of the employer’s immediate family): https://www.chicago.gov/city/en/depts/mayor/supp_info/minimum-wage.html

From the perspective of small businesses, I recognize that this is an unaffordable hike for many. Supposedly the impact on employers has been minimal, but I know that certain clients of mine are struggling to compete in this environment, while they themselves earn far below minimum wage as business-owners. I also know of organizations that are unable to incorporate their LLCs or partnerships because they would not be able to afford compliance with these and other labor laws — and yet as independent contractors they would have even fewer protections.

It also causes problems for small employers that rely on workers for overtime hours — as outlined here, the wage increase is about 9%, and federal law mandates that employees receive overtime in an amount that is 1.5 times the employee’s regular rate. This means that the overtime rate for a minimum wage employee in Chicago will increase from $18.00 to $19.50 an hour.

But from the perspective of a low-income family where both parents are working minimum-wage jobs, I recognize that decent housing is often out-of-reach: https://chicago.curbed.com/2019/6/18/18683776/chicago-illinois-affordable-housing-rent-burden

I’m not sure what the solution might be to reconcile these two issues — but regardless, make sure you’ve got those hourly rates updated in employee contracts and payroll systems by July 1st!