The minimum wage will continue to increase by $1.00 per hour each January 1st until it reaches $15.00 per hour on January 1, 2025. Student learners are individuals who receive course credit for participating in school-approved work-study programs. If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. Chicago Illinois even experienced this increased minimum wage for workers sooner since they got a $14 hourly minimum wage back on July 1, 2020, and subsequently, $15 back on July 1, 2021. The base wage for tipped employees in Cook County increased from $5.30 to Code 210.110, If employers decide to pay employees the tipped minimum wage, they must also ensure the employees are paid the standard minimum wage when tips received by the employees are combined with the tipped wages earned. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. 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. In the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. Many states are also increasing their required hourly rate. Illinois minimum wage for tipped employees will increase in subsequent years as follows: Illinois Department of Labor Minimum Wage, Employers may pay the tipped minimum wage to employees in occupations where gratuities are customarily and usually received and have been recognized as part of the compensation for hiring purposes. She is great at following through with clients and resolving payroll issues. Each year the minimum wage increases according to a formula set by the Ordinance. We have converted it to an hourly wage for the sake of comparison. If you run a business with tipped employees, you may take credit for your employees tips; however, this amount may not exceed 40 percent of their wages. It also seeks to prevent oppressive wage rates. Code 210.640. The federal minimum wage of $7.25 per hour applies to states with no set minimum wage, and to most workers in states with lower minimum wages. Specifically, those working for employers subject to the Fair Labor Standards Act. Special minimum wages apply to some workers in American Samoa and the Northern Mariana Islands. Is the minimum wage rate in Illinois increasing in 2022? Nannies and other household employees are covered by the Employers may obtain a license by filing an application with the Illinois Department of Labor and the license, if requested, may authorize the employer to employ more than one learner in the same capacity. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. SPRINGFIELD (WLS) -- The minimum wage in Illinois is set to increase to $12 per hour on New Year's Day, Department of Labor Public Information Officer Paul The minimum wage will increase to $11 per hour for standard workers; $6.60 per hour for tipped workers, and $8.50 per hour for workers under the age of 18 who work less than 650 hours in a calendar year. These FAQs should not be interpreted as legal advice. Illinois minimum wage laws allow employers to pay workers with disabilities a subminimum wage rate lower than the standard minimum wage if they have received a license from the Illinois Department of Labor to do so. Some regions in Illinois have higher minimum wages than the state average. The Illinois minimum wage is scheduled to increase to $14 per hour by Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. Need help understanding how to pay your nanny the right way? For more information, seeFLSA: Minimum Wage. The department said employees with problems regarding the minimum wage can file a complaint with IDOL at the following https://www2.illinois.gov/idol/Pages/Complaints.aspx or call 312-793-2800. Illinois Minimum Wage Rates History:Click Here, Wage Payment and Collection Act Penalties, Day and Temporary Labor Service Agency Registration, Illinois Wage Payment and Collection Act Hearings, Illinois Wage Payment and Collection Act Penalties, Job Opportunities for Qualified Applicants Act. 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. 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 new wage will be $12 an 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. Learn how to enable JavaScript in your web browser, $14.50 per hour for employers with 4 to 20 workers, How to Do Payroll Taxes and Process Payroll Yourself, Most Common Payroll Mistakes and How to Avoid Them. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. The time required may also change according to the common practice in an industry and the length of ones shift. Copyright 2023 NBCUniversal Media, LLC. JavaScript is required for full functionality of this site. For example, Los Angeles has a $15/hour rate for small employers, which would be the hourly minimum wage for a nanny working in that city. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. Complaint forms and additional information can be found online. The Human Rights Commission does not provide lawyers or legal advice. Adult minimum wage is different from youth minimum wage. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. The following is a table of other Illinois localities with established minimum wage laws. IL Admin. The first step is to assess your minimum wage workers. Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. 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. These workers must be paid the Countys minimum wage during the entire duration of employment. Save time! Chicago, IL 60602. Code 210.630, Illinois minimum wage laws allow employers to pay student learners a subminimum wage that is not less than 70% of the standard minimum wage. Learn how to enable JavaScript in your web browser. Paying employees less than the applicable minimum wage. For businesses with 20 or fewer Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. Code 210.110; IL Admin. Here is a state-by-state guide to 2022 minimum wages rates. There have been five increases in the state minimum wage since Governor JB Pritzker signed historic legislation in 2019 that establishes a schedule of wage increases, putting Illinois on the path to a $15 an hour minimum wage by 2025. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. IL Statutes 820-105/6(d); IL Admin. Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. Usage is subject to our Terms and Privacy Policy. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. Paying anything less than minimum wage is a wage violation and can cause trouble for the family with household help. Understanding the Federal Minimum Wage All Rights Reserved. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. The color poster, which also covers other Illinois labor laws, can be found, "Minimum wage laws improve the standard of living for all workers of our state,", Employees can file a minimum wage complaint with IDOL, [{"code":"en","title":"Illinois' Virtual Agent","message":"Hello"},{"code":"es","title":"Agente virtual de Illinois","message":"Hola"}], Press Release - Wednesday, December 28, 2022. The training cannot be for improving manual dexterity and production speed in repetitive operations. Last week, several supporters of a ballot initiative that would incrementally raise Californias minimum wage to $18 an hour asked a court for a writ of mandate to compel Secretary of State Shirley Weber to place the measure on the 2022 ballot after it failed to qualify by the June 30 deadline. Pursuant to the Minimum Wage Ordinance (Sec. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. Illinois minimum wage law does not address tip pooling or sharing. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. How can employers in Illinois better meet the rising minimum wage standard. 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. Earnfare participants may now earn up to $420 per month due to the state This increase will result in a state minimum wage of $15.00 by January 1, 2025. Let us know in a single click, and we'll fix it as soon as possible. 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. The Illinois Minimum Wage is the lowest hourly wage that an employee working in Illinois can legally be paid. Get an Illinois all-in-one labor law poster. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. As of January 1, 2023,the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wagefor non-tipped workers remained $13.35 (which was effective per County Ordinance on July 1, 2022). In Cook County, the minimum wage on July 1, 2022 rose from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped workers. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. Most increases will happen on January 1. After all, failing to comply can risk getting into more costly labor disputes. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. Illinois current minimum wage is $13.00. Illinois workers deserve a minimum wage that keeps up with the rising costs of living, Gov. In 2019, Illinois Gov. RELATED | Chicago minimum wage increase to $15-an-hour takes effect. In Cook County, the minimum wage on July 1, 2022 rose from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped workers. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. The youth minimum wage rate will gradually rise to $13 an hour by 2025. It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. 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. Cook County Government. You can find more information about Illinois' minimum wage and labor laws on this site. IL Statute 820-105/4. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. 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 See Table in Q4 above. Beginning, January 1, 2020, For further information on these increases, please visit the Illinois Department of Labor website. State Minimum Wages | 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 $13.00 will apply. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. Get help from our experts on how to manage your household tax and payroll. Some states and cities automatically increase their rates annually. A1: The MWO sets the lowest amount an employer must legally pay their employees. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. This field is for validation purposes and should be left unchanged. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. Federal Minimum Wage | In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. 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