Compensation for overtime employment can really increase ones cash outflow. These FAQs should not be interpreted as legal advice. Copyright 2023 NBCUniversal Media, LLC. 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. There have been three increases in the minimum wage since Pritzker signed that legislation. 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. All Rights Reserved. The training cannot be for improving manual dexterity and production speed in repetitive operations. 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. For more information, seeFLSA: Minimum 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. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. 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. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. IL Statutes 820-105/6(d); IL Admin. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. 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. Each increase will take effect every first of January of each year. A1: The MWO sets the lowest amount an employer must legally pay their employees. 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). All rights reserved, Chicago's Minimum Wage Will Increase July 1. Paying employees less than the applicable minimum wage. After all, failing to comply can risk getting into more costly labor disputes. 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. 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. 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. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster rate that applies to employees of all companies who work within Cook County. 69 W. Washington Street, Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. You can find a list of highest and lowest minimum wage rates here . 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. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. 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. Code 210.640. 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. Most increases will happen on January 1. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. What is the minimum wage in Chicago? 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. 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. The federal minimum wage is $7.25 an hour. This site is a free public service not affiliated with the Department of Labor or any governmental organization. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. 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). Starting January 1, 2023, the minimum wage for tipped employees is $7.80. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar As another year nears its end and we look towards 2022, we wanted to take a moment to remind our clients of the next installment in the Illinois scheduled minimum wage increases. Currently, the Illinois minimum wage is higher than the federal one. For businesses with 20 or fewer Student learners are individuals who receive course credit for participating in school-approved work-study programs. 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. 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? In 2022, it was $12 an hour. RELATED | Chicago minimum wage increase to $15-an-hour takes effect. Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. This is primarily based on the Consumer Price Index (or CPI). And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. J.B. Pritzker said in a statement. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. 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 IL Statutes 820-105/4(c). Suppose an employer chooses to pay employees minimum wage. She makes sure everyone gets paid. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. The federal minimum wage rate was raised to $7.25/hour in 2009. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. 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. Every business is different, so there isnt one right way to prepare. The minimum wage will continue to increase by $1.00 Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. This increase will result in a state minimum wage of $15.00 by January 1, 2025. In fact, half of the U.S. states will increase their minimum wage rates in 2022. The Human Rights Commission does not provide lawyers or legal advice. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. 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 base wage for tipped employees in Cook County increased from $5.30 to Employers carry the burden of establishing tipped employees received enough tips to ensure the employee was paid the standard minimum wage. You can also explore other employee options. Learn how to enable JavaScript in your web browser. 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? 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. The employee must also receive at least $20 per month in tips. The increase comes after Gov. You can find more information about Illinois' minimum wage and labor laws on this site. 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. ABC7 Chicago says farewell Meteorologist Phil Schwarz, High school teacher arrested for allegedly hiding cameras in bathroom, At least 29 dead, 85 injured after trains collide in Greece: officials. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. 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. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Some regions in Illinois have higher minimum wages than the state average. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. 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. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour The minimum wage will continue to be subject to And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. Is lunch time required by labor laws in Illinois? 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. Maryland Maryland was another state that passed a 2019 law to move toward a $15 Cook County, Illinois Local Minimum Wage for 2022, 2023 While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage The poverty rate reflects a person's gross annual income. 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. 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. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage 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. Let us know in a single click, and we'll fix it as soon as possible. Contact. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. | fair labor standards act minimum wage minimum wage rates. 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 increase is part of an annual rise set to continue through 2025. 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. Why? Below is a breakdown of Illinois scheduled minimum wage rate increases by year. Recommended Articles IL Statute 820-105/4. In 2019, Illinois Gov. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. Most Common Payroll Mistakes and How to Avoid Them. 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). 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 Code 210.610; IL Admin. Meanwhile, unpaid overtime compensation is also not an option. Copyright 2023 WLS-TV. Help us keep Minimum-Wage.org up-to-date! Want to learn more? Get an Illinois all-in-one labor law poster. 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. IL Admin. Is any of our data outdated or broken? For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages.