As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. How can employers in Illinois better meet the rising minimum wage standard. Most Common Payroll Mistakes and How to Avoid Them. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. Learn how to enable JavaScript in your web browser. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. In the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. What is the minimum wage in Chicago? As of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped It also seeks to prevent oppressive wage rates. 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). 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? We have converted it to an hourly wage for the sake of comparison. Currently, the Illinois minimum wage is higher than the federal one. You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. 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). Complaint forms and additional information can be found online. IL Admin. You can also explore other employee options. Get help from our experts on how to manage your household tax and payroll. Effective 01/01/2022 the Illinois state minimum wage will increase to $12.00 per hour. Compensation for overtime employment can really increase ones cash outflow. Code 210.110; IL Admin. 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. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. Most increases will happen on January 1. The first step is to assess your minimum wage workers. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. A1: The MWO sets the lowest amount an employer must legally pay their employees. 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 weekly Household Employer Digest delivered to your inbox. 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. A private employer will probably fare better by hiring contract employees, especially during an off-peak calendar quarter. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. The minimum wage will continue to increase by $1.00 The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. Illinois minimum wage will increase in subsequent years as follows: This is according to theIL Statute 820-105/4,Illinois Department of Labor Minimum Wage. 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). IL Admin. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. Pursuant to the Minimum Wage Ordinance (Sec. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. Contact. Many states are also increasing their required hourly rate. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. 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 this way, you wont have to worry about the rate for overtime pay anymore. The Department of Labor has announced that with the Executive Order 14026 minimum wage for workers working on federal contracts will increase to $16.20 per hour, beginning on January 1, 2023. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. 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. IL Statute 820-105/4. A6: No, the City of Chicago has its own MWO. 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. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. You may contact a Human Rights Investigator if you have any questions about the complaint process. That supersedes the federal rate and becomes the applicable rate for household employers. The list of municipalities that do not follow the MWO changes frequently. IL Adm. Code 210.500. This site is a free public service not affiliated with the Department of Labor or any governmental organization. In fact, half of the U.S. states will increase their minimum wage rates in 2022. 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. That's a $1 increase scheduled for Jan. 1. 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). In most instances in Illinois, the Illinois minimum wages will apply as it generally guarantees a higher wage rate for employees than federal law. Is lunch time required by labor laws in Illinois? What to Know About the Cook County Commissioner After Advancing to the Runoff Election. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. 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. 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. Andrea Doerdelmann is every payroll clients preferred Eder, Casella & Co. team member, or shes at least their employees favorite whether they know it or not. 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. Nanny Tax & PayrollSenior Care Tax & PayrollHousehold Staff SolutionsInsurance & BenefitsPricing, Nanny Tax CalculatorNanny Tax GuideHousehold Employer FAQMore Free ResourcesBlog, 800-929-9213Live ChatSend an EmailFree ConsultationMore InfoLogin. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. Illinois minimum wage law does not address tip pooling or sharing. Workers under 18 who work fewer than 650 hours a year will also earn a minimum wage of $10.50 per hour beginning Jan. 1. Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. Not providing adequate paid breaks can also be counted as unpaid wages. 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 Any time worked in 2022 must reflect the new IL Admin. 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. 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. 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. Nannies and other household employees are covered by the Is the minimum wage rate in Illinois increasing in 2022? Since that legislation was signed, there have been four increases in the minimum wage. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. 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. The youth minimum wage rate will gradually rise to $13 an. Intake interviews are by appointment only, please call or email to make an intake appointment. 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. Copyright 2023 NBCUniversal Media, LLC. 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 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. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. These workers must be paid the Countys minimum wage during the entire duration of employment. 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. Expert advice, industry insights, and curated content, delivered to you once a week. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. Usage is subject to our Terms and Privacy Policy. 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. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. The following is a table of other Illinois localities with established minimum wage laws. Another efficient way is to increase your companys productivity during the set working hours. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. Help us keep Minimum-Wage.org up-to-date! 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. See Table in Q4 above. 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. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. Copyright 2023 NBCUniversal Media, LLC. 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