The contract includes a 2½ percent pay raise and cost-of-living adjustments.
City Colleges Chancellor Cheryl Hyman says the deal was made with students in mind.
"We've all worked very hard to ensure again that what we did was fair to our educators and professionals but has a strong focus on ensuring that everybody is focused on putting the students first and ensuring that they succeed," she said.
Chicago Mayor Rahm Emanuel called the agreement progressive.
120,000 students go to one of City Colleges' thirteen locations across Chicago.