Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; WebThe table below lists the current prevailing 2023 minimum wage rates for every state in the United States. As of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped The youth minimum wage rate will gradually rise to $13 an. Code 210.610; 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. Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. The minimum wage will continue to be subject to Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. 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. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. IL Statutes 820-105/6(d); IL Admin. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. A1: The MWO sets the lowest amount an employer must legally pay their employees. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. Need help understanding how to pay your nanny the right way? Get help from our experts on how to manage your household tax and payroll. Code 210.110; IL Admin. Get individualized content on the topics you care about most by telling us a little more about yourself. Complaint forms and additional information can be found online. Suite 1130, This field is for validation purposes and should be left unchanged. Illinois. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. A private employer will probably fare better by hiring contract employees, especially during an off-peak calendar quarter. IL Admin. Employers must implement a 20-minute break for each 7.5-hour shift. The poverty rate reflects a person's gross annual income. Copyright 2023 NBCUniversal Media, LLC. IL Admin. How can employers in Illinois better meet the rising minimum wage standard. 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). See Table in Q4 above. This increase will result in a state minimum wage of $15.00 by January 1, 2025. Is the minimum wage rate in Illinois increasing in 2022? WebThe projected federal minimum wage in 2023. A9: Yes, the Ordinance applies to tipped employees. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. Minimum wage workers in IL earn a total of $330.00 per week, or $17,160.00 per year. 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). Recommended Articles 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. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. 42-13) and rules (Sec. Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. There are exceptions to the categories of employees covered by the Ordinance. Content 2023 Minimum-Wage.org, all rights reserved. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. Most Common Payroll Mistakes and How to Avoid Them. On July 1, 2023, the minimum wage will increase to $11.25 for employees not offered qualifying health insurance and to $10.25 per hour for employees offered 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. Is any of our data outdated or broken? Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. | fair labor standards act minimum wage minimum wage rates. Any time worked in 2022 must reflect the new 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. Want to learn more? Get an Illinois all-in-one labor law poster. 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. As we have featured above, the people of Illinois can expect a series of minimum wage increases until 2025. Copyright 2023 NBCUniversal Media, LLC. It's $14 an hour for smaller businesses in Chicago. The minimum wage increase is part of an annual rise set to continue through 2025. Employers cannot displace any other workers with learners and cannot use learners to depress the wage rates or working standards for experienced workers performing similar work. 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. The Illinois Minimum Wage is the lowest hourly wage that an employee working in Illinois can legally be paid. The Illinois minimum wage is scheduled to increase to $14 per hour by Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. The youth minimum wage rate will gradually rise to $13 an hour by 2025. 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. In 2022, it was $12 an hour. Because Cook County has a higher minimum wage rate than the one set by Illinois or the Federal government, the higher local minimum wage rate takes precedence and must be paid to all employees covered by the local minimum wage regulation. IL Admin. The same applies to younger employees as employers can pay a subminimum wage to learners within set periods of time set aside for adequate training. 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. Cook Countysminimum wage is based on the greatest rate among the Federal minimum wage, Illinois State minimum wage, or on the Countys calculation using the Consumer Price Index (CPI). 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. Another efficient way is to increase your companys productivity during the set working hours. Most increases will happen on January 1. How to Do Payroll Taxes and Process Payroll Yourself After all, failing to comply can risk getting into more costly labor disputes. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. Learn how to enable JavaScript in your web browser. You can also explore other employee options. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. 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. She is great at following through with clients and resolving payroll issues. 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. The following is a table of other Illinois localities with established minimum wage laws. The training cannot be for improving manual dexterity and production speed in repetitive operations. 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. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. *Please refer to our Privacy Policy for more details. 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. Currently, the Illinois minimum wage is higher than the federal one. The Human Rights Commission does not provide lawyers or legal advice. In most instances in Illinois, the Illinois minimum wages will apply as it generally guarantees a higher wage rate for employees than federal law. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. Illinois workers deserve a minimum wage that keeps up with the rising costs of living, Gov. A4: Effective 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). WebMinimum wage. Federal Minimum Wage | 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. All Rights Reserved. Suppose an employer chooses to pay employees 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. 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 You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. The new wage will be $12 an hour. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. The minimum wage in Illinois just went up -- again. The state is on a regular increase schedule, going up $1 each year on Jan. 1. For more information, seeFLSA: 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. It also seeks to prevent oppressive wage rates. Compensation for overtime employment can really increase ones cash outflow. Pursuant to the Minimum Wage Ordinance (Sec. 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. 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. 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. In 2019, Illinois Gov. Subscribe to the Town Square newsletter for business owners. 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). Why? 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. Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022, Chicago minimum wage increase to $15-an-hour takes effect, https://www2.illinois.gov/idol/Pages/Complaints.aspx. Paying anything less than minimum wage is a wage violation and can cause trouble for the family with household help. The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. Readers should contact legal counsel for legal advice. The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. 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. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. Contact. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. The employee must also receive at least $20 per month in tips. A domestic employer can be sued by their worker for back wages and/or be fined by their states labor agency for not following minimum wage rates. 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. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. IL Statutes 820-105/6(d); IL Admin. 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. Student learners are individuals who receive course credit for participating in school-approved work-study programs. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. MktoForms2.loadForm("//app-abd.marketo.com", "963-ZNS-159", 1775); Get the help you need sign up for a nanny tax and payroll service plan. 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. 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. 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. The weekly Household Employer Digest delivered to your inbox. The 2022 Illinois state minimum wage rate is $8.25 per hour. A11: Employers are not required to pay minimum wage during the first 90 days of employment. Earnfare participants may now earn up to $420 per month due to the state Copyright 2023 WLS-TV. Tipped employees may be paid 60% of the hourly minimum wage. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. 820 ilcs 205/8 and 8.1 and 56 ill. All minors under the age of 16 who are working as models, actors, and in performance work must apply for and receive an employment certificate The tipped minimum wage in illinois for 2022 is $7.20 per hour. Every business is different, so there isnt one right way to prepare. Cook County Government. Maryland Maryland was another state that passed a 2019 law to move toward a $15 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. For businesses with 20 or fewer Chicago, IL 60602. Do you really need to employ all of them? Not providing adequate paid breaks can also be counted as unpaid wages. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. These FAQs should not be interpreted as legal advice. This isnt the traditional practice. WebMinimum Wage Up to $12 an hour on New Years Day SPRINGFIELD The minimum wage in Illinois is set to increase another dollar on Saturday, January 1, 2022. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. 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. Help us keep Minimum-Wage.org up-to-date! 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. 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? The current minimum wage in Illinois is $13 per hour. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. Each year the minimum wage increases according to a formula set by the Ordinance. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. Is lunch time required by labor laws in Illinois? JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. 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. The minimum wage equals about $480.00 per 40-hour week and about $24,960.00 per year. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. 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. A10: The MWO does not apply to independent contractors. Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site 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. This is primarily based on the Consumer Price Index (or CPI). Starting January 1st, minimum wage workers will get a raise and businesses will continue receiving tax credits for providing their workforce with a living wage.. Our investigators conduct neutral fact-finding investigations, which includes gathering information and conducting interviews to determine if a violation of the MWO has occurred. Expert advice, industry insights, and curated content, delivered to you once a week. 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. For further information on these increases, please visit the Illinois Department of Labor website. View Sitemap. 69 W. Washington Street, Please note that individuals may obtain legal advice and assistance filing complaints with the Commission from nonprofit organizations that handle housing issues in Cook County. Illinois minimum wage for tipped employees is $7.80. Beginning, January 1, 2020, However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. Click any state for details about the minimum wage, exemptions, and other state labor laws. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour 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. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. The increase comes after Gov. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. That's a $1 increase scheduled for Jan. 1. 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? While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. Under the bill, workers under 18 years old and who work fewer than 650 hours in a year will earn a minimum wage of $9.25 per hour beginning Jan. 1, the department said. 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. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Since that legislation was signed, there have been four increases in the minimum wage. Please check with the local city, township, or village to confirm whether your municipality has adopted the MWO. Fully updated for March 2017! The training programs must involve either formal instruction or on-the-job training and the learners must have limited responsibility and work under supervision or guidance. 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. Let us know in a single click, and we'll fix it as soon as possible. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Failing topost a notice advising of the current minimum wages under the Cook County Minimum Wage (in a conspicuous place at each facility where any Covered Employee works that is located within the geographic boundaries of Cook County).