Illinois Implements New Laws on July 1, 2025: Changes to Chicago’s Minimum Wage, Gas Tax Increase, and Hotel Shampoo Bottle Regulations

CHICAGO (WLS) — Several new laws take effect in Illinois on July 1, 2025.

Governor JB Pritzker signed Illinois’ fiscal year 2026 budget in mid-June. This $55 billion budget, which will be implemented on July 1, is the state’s largest ever.

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Chicago minimum wage

Chicago workers making minimum wage are set to get a raise on Tuesday.

The city’s minimum wage will be $16.60 and the minimum wage for subsidized youth employment programs will be $16.50.

READ MORE | Chicago minimum wage set to increase July 1 along with changes for paid time off

Gas Tax Hike

Illinois drivers should also expect a jump in gas prices.

A gas tax hike of 48.3 cents per gallon will hit the pumps on Tuesday.

The new hike gives Illinois the second-highest gas tax rate in the country.

Small Single-Use Plastic Bottle Act

Hotels with 50 rooms or more will no longer be allowed to provide small single-use bottles for personal care products like shampoo and conditioner.

Next year, hotels with less than 50 rooms will also be prohibited from providing the small single-use bottles, according to HB4639.

READ ALSO | 2025 New Illinois laws in effect on Jan. 1 from health insurance to digital driver’s licenses, more

Other laws signed by Gov. Pritzker

On Monday, Pritzker took action on multiple bills.

The following will be effective July 1, 2025:

SB0028: This bill amends the School Code by eliminating the definition and mention of “student growth components” from the section on the optional alternative evaluative dismissal process for teacher evaluations.

SB0852: This bill does away with driver license suspensions for failure-to-appear in cases of minor traffic violations that only incur fines. However, it maintains suspensions for such failures in traffic offenses that could result in imprisonment or incidents that involve a fatality.

The following took effect immediately:

HB2488: Eliminates references to a federal program in the Equal Pay Act to ensure that federal changes do not undermine the state requirement that private employers with 100 or more employees report on employee wages by gender and race/ethnicity.

HB3339: Extends Tamara Clayton Expressway Camera Act to 2028 and allows for the cameras to be used in investigations of human trafficking and involuntary servitude.

HB3760: Establishes a designated hunting season for the Gray Fox and allows the Director of the Illinois Department of Natural Resources to adjust the length of the season to adequately manage the Gray Fox population.

SB0108: Amends the Code of Criminal Procedure to make permanent a pilot program for assessment waivers for violations of the Vehicle Code in a county having a population of more than 3,000,000.

SB1344: Establishes financial penalties for contractors who fail to file payroll reports in violation of the Prevailing Wage Act and codifies that the Prevailing Wage Act applies to sewer inspection projects.

SB2266: Clarifies authority for regulating non-community water supplies.