This increase will result in a state minimum wage of $15.00 by January 1, 2025. 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. IL Admin. 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. The state is on a regular increase schedule, going up $1 each year on Jan. 1. A9: Yes, the Ordinance applies to tipped employees. 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. 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. Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? The wage is much higher than the federal minimum wage of $7.25 per hour. Readers should contact legal counsel for legal advice. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. These rates are effective on January 1, 2022, unless otherwise noted. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. See Table of Minimum Wage Increase for the State of Illinois: A5: The Ordinance does not apply to employees under the age of 18 years. 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 This field is for validation purposes and should be left unchanged. Get your free:Complete Guide to Household Payroll, schedule time with us at your convenience, $14 (effective July 1, 2022; until then $13/hr), $11 (effective September 30, 2022; until then $10/hr), $14 (for 10 or fewer employees; effective July 1, 2022; until then $13.50/hr), $13.50 (for small employers; effective July 1, 2022; until then $12.50/hr), $10.75 (for 5 or fewer employees; effective July 1, 2022; until then $10/hr), $9.50 (effective July 1, 2022; until then $8.75/hr), $10.50 (effective July 1, 2022; until then $9.75/hr), $13.50 (effective July 1, 2022; until then $12.75/hr), $14.75 (effective July 1, 2022; until then $14/hr), $12.50 (effective July 1, 2022; until then $12/hr), $17.27 (or $15.75/hour if employer pays $1.52/hour toward employees medical benefits). Paying employees less than the applicable minimum wage. Effective January 1, 2022, the tipped wage rate will increase to $7.20 per hour and continue to increase annually based on minimum wage increases. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. 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 Here are a few options you may want to consider: As always, to make sure your business is prepared and stays in compliance (get your EIN for starters), we recommend that you discuss these upcoming changes to the Illinois minimum wage laws with your accountant and lawyer. Learn how to enable JavaScript in your web browser. 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. IL Statutes 820-105/6(d); IL Admin. In this way, you wont have to worry about the rate for overtime pay anymore. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. These workers must be paid the Countys minimum wage during the entire duration of employment. In 2019, Illinois Gov. Beginning, January 1, 2020, The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. She makes sure everyone gets paid. This is primarily based on the Consumer Price Index (or CPI). In 2022, it was $12 an hour. If the municipality has not enacted their own minimum wage, the Countys MWO applies. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage Pursuant to the Minimum Wage ordinance (MWO) (Sec. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. This isnt the traditional practice. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. 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. Cook County Government. Expert advice, industry insights, and curated content, delivered to you once a week. View Sitemap. That's a $1 increase scheduled for Jan. 1. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar Click any state for details about the minimum wage, exemptions, and other state labor laws. Instead of printing out pages of mandatory Illinois and Federal labor law posters, you can purchase a professional, laminated all-in-one labor law poster that guarantees compliance with all Illinois and federal posting requirements. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. All Rights Reserved. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. Additionally, non-tipped employees may be paid a minimum wage of $7.80 in 2023 if applying the tip credit during their first 90 days with an employer. The Illinois minimum wage is scheduled to increase to $14 per hour by Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. 69 W. Washington Street, The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. 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 Cicchini said Monday. WebMinimum wage. The Frequently Asked Questions (FAQs) provide guidance to employers and employees on the requirements of the Cook County Minimum Wage Ordinance (MWO) and procedural rules, as well as answers to questions commonly submitted to the Cook County Human Rights Commission (Commission). WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. 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. Any time worked in 2022 must reflect the new During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. Effective 01/01/2022 the Illinois state minimum wage will increase to $12.00 per hour. Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; That supersedes the federal rate and becomes the applicable rate for household employers. The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. 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. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. The poverty rate reflects a person's gross annual income. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. Some states and cities automatically increase their rates annually. State Minimum Wages | Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. All employers in Illinois are required to post the "Your Rights Under Illinois Employment Laws" poster in the workplace where notices to employees are regularly posted. 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. 42-13) and rules (Sec. Help us keep Minimum-Wage.org up-to-date! IL Statute 820-105/4. However, if you live in San Fransisco, Los Angeles, or more than 25 other California cities with a higher local minimum wage, then that city rate applies. A11: Employers are not required to pay minimum wage during the first 90 days of employment. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. 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