Therefore, the minimum wage remains at $13.00 per hour for non-tipped employees. As of January 1, 2022, the minimum wage for tipped workers increased to $7.20 per hour, in alignment with the Illinois State minimum wage. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. This isnt the traditional practice. The current Illinois minimum wage of $12.00 per hour is the lowest amount a non-exempt employee in Illinois can legally be paid for hourly work. Special minimum wage rates, such as the "Illinois waitress minimum wage" for tipped employees, may apply to certain workers. However, according to the Illinois minimum wage law, if your under-18 employee works more than 650 hours in a calendar year, they must be paid at the same rate as an employee who is 18 or over. IL Admin. *Please refer to our Privacy Policy for more details. In that case, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage. J.B. Pritzker signed legislation into law providing a path to increase Illinois' minimum wage rate to $15 per hour and $9 for tipped workers by 2025. Pursuant to the Minimum Wage Ordinance (Sec. Here's What to Know, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Paul Vallas vs. Brandon Johnson: A First Look at the April Chicago Mayoral Runoff, Who is Brandon Johnson? Prior to the first of these minimum wage increases in 2020, the last time workers in Illinois received an increase in the minimum wage was more than a decade ago in 2010. For tipped workers (such as restaurant servers) the Chicago minimum wage is $8.70 for employers with 4 to 20 workers and $9.24 for employers with 21 or more workers. Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. Here's How Much it Will Be, Grocery Tax in Illinois, New Minimum Wage: Here's What Changed Starting This Month, Minimum Wage Illinois: Chicago-Area Increases, Statewide Hike Months Away, Winners, Runoffs, Races Too Close to Call: A Look at Where Things Stand in the 2023 Chicago Election, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who is Brandon Johnson? Suppose an employer chooses to pay employees minimum wage. WebMinimum wage. Minimum wage workers are encouraged to keep a close eye on their paychecks in the new year as any time worked in 2023 must reflect the new $13 an hour minimum wage. Some regions in Illinois have higher minimum wages than the state average. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. What is the minimum wage in Chicago? While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. The federal minimum wage is $7.25 an hour. J.B. Pritzker signed legislation into law providing a years-long path to increase Illinois' minimum wage rate to $15 per hour and $9 for tipped workers. Federal Minimum Wage | The minimum wage will continue to increase by $1.00 WebA4: Effective January 1, 2023, the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wage for non-tipped workers remained In this way, you wont have to worry about the rate for overtime pay anymore. Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. Tax and legal updates or any other information posted on the GTM Payroll Services Inc. website and/or social media is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. You can find a list of highest and lowest minimum wage rates here . Illinois minimum wage laws allow employers to pay student workers a subminimum wage that is not less than 70% of the standard minimum wage if they qualify as student learners. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. Beginning on July 1, 2022, the minimum wage in Chicago will be: Employees under 18 years of age, and those subject to Section 6 of the Illinois Minimum Wage Law ($7.20 per hour for tipped Employees like restaurant servers). The minimum wage in Illinois will rise to $13 an hour on Jan. 1, as part of a state law passed in 2019 that gradually increases the state's minimum wage to $15 an hour by 2025. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. Let us know in a single click, and we'll fix it as soon as possible. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; Earnfare participants may now earn up to $420 per month due to the state See Table in Q4 above. In addition to Cook County, there are other localities in Illinois that have passed municipal minimum wage legislation. Here is a state-by-state guide to 2022 minimum wages rates. Content 2023 Minimum-Wage.org, all rights reserved. She is also excellent at adapting to various client accounting systems to get payroll done on the clients system rather than ours., To provide you with the best experience, this website uses cookies and third party services. Posted 3 days ago. Get The 2022 Illinois Employment Law Handbook (Printable PDF) today! WebThe table below lists the current prevailing 2023 minimum wage rates for every state in the United States. A private employer will probably fare better by hiring contract employees, especially during an off-peak calendar quarter. In effect, these states have a minimum wage at the federal rate of $7.25/hr: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, and Wyoming. The increase comes after Gov. Since that legislation was signed, there have been four increases in the minimum wage. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. A7: No, if a municipality has passed their own minimum wage (like the City of Chicago) then the municipality's minimum wage applies to employers located within or doing business in the municipality. According to a study by the Illinois Economic Policy Institute at the University of Illinois in 2020, more than 1.4 million adult hourly workers in Illinois make less than $15 per hour. In most instances in Illinois, the Illinois minimum wages will apply as it generally guarantees a higher wage rate for employees than federal law. The poverty rate reflects a person's gross annual income. In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greatest of the Federal, Illinois State or Cook County's minimum wage. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. In Chicago, the minimum wage on July 1, 2022 for non-tipped workers rose from $15 to $15.40 for large businesses that employ 21 or more workers, and for $14.50 for smaller businesses. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. After all, failing to comply can risk getting into more costly labor disputes. Is any of our data outdated or broken? As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar Illinois minimum wage laws do not allow employees to pay trainees a wage rate lower than the standard minimum Illinois minimum wage laws do not allow employees to pay trainees a wage rate lower than the regular rate or standard minimum wage. Get individualized content on the topics you care about most by telling us a little more about yourself. View Sitemap. According to a study by the Illinois Economic Policy Institute at the University of Illinois in 2020, more than 1.4 million adult hourly workers in Illinois make less than $15 per hour. In 2022, that means minimum wage will increase to $12 an hour for standard workers and $9.25 an hour for workers under the age of 18 who work less than 650 hours per calendar year. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. Finally, learning more about minimum wage basics, preventing minimum wage complaints, and other related topics can help determine the best strategies to ensure proper employee wages. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. That's a $1 increase scheduled for Jan. 1. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. IL Admin. Need help understanding how to pay your nanny the right way? For further information on these increases, please visit the Illinois Department of Labor website. IL Statutes 820-105/4(c). A8: Yes, generally, the Ordinance requires all employers that are located within Cook County and gainfully employ any person(s) within the boundaries of the County for at least 2 hours per week to comply with the County minimum wage. Illinois minimum wage laws allow employers to pay learners 18 years or age and older a subminimum wage that is not less than 70% of the standard minimum wage. It also seeks to prevent oppressive wage rates. All rights reserved, Winners, Runoffs, Races Too Close to Call: A Look at Where Things Stand in the 2023 Chicago Election, When Is the Chicago Runoff Election? Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. All rights reserved, Chicago's Minimum Wage Will Increase July 1. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1. 42-13) and rules (Sec. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. Save time! And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. For more information, seeFLSA: Minimum Wage. Keep in mind that Illinois and the Federal Fair Labor Standards Act both define various minimum wage exemptions and other labor laws that may apply to employees in Cook County. That supersedes the federal rate and becomes the applicable rate for household employers. The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". Do you really need to employ all of them? Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. Want to learn more? Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. 42-13) and rules (Sec. The increases range from a $0.22 inflation adjustment in Michigan to a $1.50 per hour raise in Virginia, the equivalent of an annual increase ranging from $458 to $3,120 for a full-time, full-year minimum wage worker. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. These states either have set their state rate to the federal rate, do not have a minimum wage rate, or have a rate below the federal minimum wage. She is great at following through with clients and resolving payroll issues. What is the new minimum wage? While Illinois' state minimum wage is $12.00 per hour, Cook County has set its own, higher minimum wage rate that applies to employees of all companies who work within Cook County. A minimum wage increase is currently scheduled in Cook County, but until the effective date of 7/2/2021 the state minimum wage rate of $12.00 will apply. A2: The Ordinance applies to hourly, salaried, and tipped employees, over the age of 18, working in Cook County, even those who may be working within the County to make deliveries or driving within the County limits. 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