New Illinois laws in effect on July 1, 2025 include Chicago minimum wage, gas tax hike, hotel shampoo bottle changes

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

Illinois’ Governor, JB Pritzker, signed the fiscal year 2026 budget in mid-June, amounting to a historic $55 billion spending plan. The budget is scheduled to come into effect on July 1.

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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:

One significant bill within the budget is SB0028, which makes amendments to the School Code. It specifically focuses on an alternative evaluative dismissal process for teacher evaluations by eliminating the definition and references to “student growth components.”

Furthermore, SB0852 is another notable inclusion in the budget. This bill eliminates driver’s license suspensions for failure-to-appear in minor traffic violations that solely incur a fine. However, it maintains the provision for license suspension in cases of traffic offenses that could lead to imprisonment or when the incident results in 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.

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