Chicago, Cook County minimum wage increases take effect Wednesday

CHICAGO (WLS) -- New laws took effect Wednesday with the start of July, including increases in the minimum wage.

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In Chicago, the minimum wage for employers with four or more employees is $17.05 per-hour, up from $16.60 per-hour, with an overtime minimum wage of $25.58 per-hour.

For Chicago tipped workers working for employers with four or more employees, the minimum wage is $12.96 per-hour, with an overtime minimum wage of $21.49 per-hour.

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It remains unclear how many employees in the city currently earn at the lowest end of the pay scale.

In Cook County, the minimum wage increases to $15.40 per-hour for non-tipped employees and $9.25 per-hour for tipped employees.

In Illinois, the minimum wage for workers over 18 is $15 per-hour for non-tipped workers, $9 per-hour for tipped workers and $13 per-hour for youths and those working less than 650 hours per calendar year.

Barista Jillian Smith is one of the tens of thousands of workers in Chicago and around suburban Cook County, who will see a larger paycheck now that the minimum wage increase takes affect.

"Just a little bit more comfort," Smith said. "Just a little bit less worrying, still a little worried sometimes, but like it's nice to know there's a little bit extra security."

Jamie Key, the owner of Truth Chicago, says because the restaurant business operates on a very thin margin, he'll have to get creative when balancing the additional wage expense.

"I think it's fair because our servers and our tip employees are the heart and soul of our business; so I in order to operate successfully, we need them compensated fairly," Key said. "But on the flipside, labor cost are very, very high. So if it's slow, it kinda like, so we'll wait to see what happens."

Key said she plans to bring in partners and rent out the space during slower hours to offset increased labor costs.

While some workers admit the bump in pay may not be life-changing, they said, nowadays, every little bit helps.

"I think that it's great. It's already hard to pay for groceries and rent and everything so everyone deserves to be making a livable wage," Lvl Up Coffee lead barista Ashlyn Sysco said. "It's definitely a positive thing."

Bronzeville barista Jillian Smith said the added income brings stability, calling it "super exciting" and noting that earnings can fluctuate depending on the day.

Some employers say the increase will have limited direct impact.

At Manny's Cafeteria and Delicatessen, owner Dan Raskin said his roughly three dozen employees already earn above minimum wage.

He said market forces, not government mandates, drive wages, but acknowledged that required increases put pressure on businesses.

Raskin added that rising supplier costs, including higher beef prices and increased container costs, continue to strain margins.

"We take increases almost every day; so it's not something that raising the minimum wage helps at this point," he said.

Customers interviewed said they were willing to absorb slightly higher prices. Diner Yaisa Tingle said rising living costs make higher wages necessary for workers to support themselves.

The increase comes as worker pay struggles to keep up with inflation.

In Chicago, City Council froze planned wage hikes for tipped workers earlier this year after pushback from the restaurant industry.