How does Chicago’s minimum wage increase affect me in Lake, Cook, DuPage, or Will County?
On 7/1/22 the minimum wage in Chicago will increase to $14.50 for companies with 20 or less employees and to $15.40 for companies with 21 or more employees.
Some things to consider:
The Ripple Effect: Cities neighboring Chicago will have to increase rates to compete, otherwise they risk losing current employees, and hiring new talent becomes increasingly challenging. We have seen employees leave for as little as $0.50 more. This can shift the labor pool and eventually affect Lake, Cook, DuPage, and Will Counties.
Inflation: current levels show the inflation rate at 8.3%. Food and gasoline prices have increased significantly. Companies need to consider the cost of living for their workers.
Labor Pool: as people re-enter the labor market, they will demand higher wages. We have seen candidates are not willing to accept lower-paying jobs especially if they are physically demanding.
Be Proactive. Companies are making the wage shift and increasing wages now for the lowest-paid jobs. According to newly released Labor Department data, in the past quarter, weekly pay for the lowest earners (those in the 10th percentile) rose faster since this time last year than for any other group of workers.
If you would like additional information on your specific industry or area, please feel free to reach out to our team to discuss.