Unlike last year, where the unemployment rate was greater than 8.5%, the. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Chicago, Illinois Local Minimum Wage for 2022, 2023 While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage rates that apply to employees of different classes of company who work Chicago. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. The increases range from an $0.08 inflation adjustment in Minnesota to a $1.50 per hour raise in New Mexico, the equivalent of an annual increase ranging from $166 to $3,120 for a full-time, full-year minimum wage worker. Brookfield 13. In Chicago, on July 1, 2022, the minimum wage for non-tipped workers rose from $15 to $15.40 for large businesses that employ 21 or more workers, and for $14.50 for . This site is protected by reCAPTCHA and the Google Privacy Policy 6-105-050 Wage theft. You will find a full list of new rates for large employers, including: Note: State wage rates are not included in this guide, nor are tipped wages, industry-specific rates or rates for employers of other sizes. Therefore, even if an employer provided a tip credit notice in the past, employers must provide an updated tip credit notice with the new minimum wage rates. Employees are covered by the Cook County MWO if: Employees who believe their employer is not paying the required minimum wage should first check to ensure the municipality where they work does not have a different minimum wage. story Federal minimum wage applies $7.25 $16.10 No specified minimum wage Filter states Minimum wage or equal to Increased the minimum wage in the last Updated minimum-wage laws in the last Have upcoming minimum-wage increases Use automatic increases (indexing) Contain areas with different minimum wages Federal Minimum wage Tipped wage The MWO sets the lowest amount an employer must legally pay their employees. Strategic Plan(English Version) Donar/Donate 2022 CBS Broadcasting Inc. All Rights Reserved. According to a 2011 study by the Employment Policies Institute, for every 10 percent hike in the minimum wage, employment declined 6.5 percent for 16-to-24-year-old black males without a high school diploma. comeback who continue to work after their work-study has ended or becomes exhausted must also be paid at the Chicago and Cook County minimum wage. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy story Effective July 1, 2022, the minimum wage for non-tipped workers increased to $13.35. FOX 32 Chicago. But research shows that increasing the cost of hiring people through minimum wage hikes means many workers with lower skill levels and comparatively little experience will be priced out of the job market altogether, and many job-creating businesses will have a hard time staying afloat. 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. Next year on January 1, that will increase to $10.50. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. . Illinois The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. The minimum wage in Cook County on July 1 will increase for both non-tipped workers and tipped workers, a press release from the county states. Nevada. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. Cook Countys minimum 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). All rights reserved, Chicago Police Supt. On Jan. 1, 2022 the state's minimum wage increases to $12 per hour. Effective Jan. 1, the statewide Illinois minimum wage will rise to $13 per hour for non-tipped employees ages 18 and . With the increases in the Chicago and Cook County minimum wage, the minimum wage paid to tipped employees will also increase. The employer maintains a business facility in Cook County or is issued a business license by Cook County. With economists forecasting prolonged inflation, its likely the Federal Reserve will keep hiking interest rates. Research on minimum wage laws backs up their sentiments. But wage hikes have a worse effect on lower quality restaurants: A $1 increase in the minimum wage leads to a 14 percent rise in the likelihood a 3.5-star-rated (i.e., median-rated on Yelp) restaurant will close, according to the study. Research on minimum wage laws backs up their sentiments. 12/2022 - Illinois Minimum Wage - Revised with new minimum wage rate of $13.00 per hour effective January 1, 2023 and new added information on employees who work more than 12 hrs or longer will have an additional 20 minutes meal break and reasonable bathroom breaks. What is the minimum wage in Cook County 2022? On June 27, the Wilmette Village Board voted to opt out of the minimum wage and sick leave ordinances by votes of 6-1 and 5-2, respectively. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 Statewide, black Illinoisans had a jobless rate of 12.7 percent in 2016, according to Bureau of Labor Statistics data; Illinois is tied with Nevada for the highest black unemployment rate in the nation. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. It is not surprising that so many municipalities are rejecting ordinances that can make it even harder for businesses to stay afloat, and to provide job opportunities for residents who need them. Again, this increase may not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. Chicago City Council passed a minimum wage increase for Chicago in 2014, setting the minimum wage in the city at $10 per hour in 2015, and raising it incrementally every year until it hits $13 per hour in 2019. Alsip 2. But if 8.5 percent citywide or countywide unemployment is high enough to halt increases in the minimum wage under the ordinances, shouldnt the states 12.7 percent black unemployment rate and the fact that 34.3 percent of Cook County 20-to-24-year-old black residents are out of both school and work give lawmakers pause? As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. Copyright 2023 NBCUniversal Media, LLC. The "sub-minimum" hourly wage for tipped workers at small businesses (4-20 employees) will increase to $8.70; at large businesses (21 or more employees), it will rise to $9.24, according to a. Both are increasing July 1 to $15.40 and $14.50, respectively. Cook County: $6.70 (current as of July 1, 2021) $5.80 (effective January 1, 2022) $6.60 (current) $7.20 (effective January 1, 2022) To stay on top of the changes, check out our guide, County and City Minimum Wage Rates: Jan. 1, 2023. Cook Countys minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Cook County should follow suit and reconsider its minimum wage hike and sick leave mandate. The Seattle Times noted, For an average low-wage worker in Seattle, that translates into a loss of about $125 per month per job., This newstudy echoed findings in a 2016 University of Washington report on the effects of the first phase of Seattles increase in its minimum wage. The state's $10 per hour minimum wage is set to rise by $1 on Jan. 1, 2022, until it hits $15 per hour in 2025. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Interestingly, the Chicago and Cook County ordinances provide that when unemployment in Chicago or Cook County, respectively, reaches 8.5 percent or higher, the minimum wage will not increase the following year. 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. July 1,2022 Effective Date. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices., Minimum wage hikes can drive companies out of business. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. First published on June 1, 2022 / 6:19 PM. Cook County issues notice to Minimum Wage Ordinance, Office of the Independent Inspector General, CARES Act Information for Local Governments, Freedom of Information Act for Offices Under the President, The employee has worked for an employer in Cook County for at least 2 hours in any two-week period, and, The employer has four or more employees (or the employee is a domestic worker) and. Chicago City Council passed a minimum wage increase for Chicago in 2014, setting the minimum wage in the city at $10 per hour in 2015, and raising it incrementally every year until it hits $13 per hour in 2019. 5 Although the county minimum wage exceeds the state rate, the state minimum cash wage (MCW . In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . Use the interactive map to find the minimum wage for your county or metropolitan area. The Wages set out in Sections 42-13 and 42-14 are subject to the overtime compensation provisions in the Cook County Minimum Wage Law, with the exception that the definitions of "Employer" and "Employee" in this chapter shall apply. The minimum wage for tipped employees in suburban Cook County will increase to $7.40 per hour. Blue Island 10. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. 2023 Living Wage Poster The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry. dinance 3 FREQUENTLY ASKED QUESTIONS *%: M'pe`l;j Cook County Government. In Illinois, the minimum wage is currently set at $8.25. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . However, this is set to change in 2020, when the state will raise the minimum wage to $10.00. Teenagers (under the age of 18) are not entitled to the minimum wage. Cook's Minimum Wage Ordinance does not apply to the city of Chicago, which has its own Ordinance. 6-105-045 Paid sick leave. Mandatory Cook County IL Labor Law Notices. Employers must inform employees of these increases in writing. The 1-Year Compliance Plan offers required Federal and State posters plus 12 months of mandatory updates for free! Cook County, which has its own minimum wage ordinance, will also increase its minimum wage on July 1, from $13 to $13.35 for non-tipped workers . hb```a``Abl@YsNu!e!B[*.l^\l5HmheY2E Q,PM@Z" In Cook County the . *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). Fair Workweek Ordinance In Chicago, enhancements to the Fair. The Wilmette/Kenilworth Chamber of Commerce, which represents many small businesses, urged the village board to opt out, explaining that [t]he majority of respondents [to the chambers survey of local businesses] believe they would have to raise prices in order to comply with a mandatory minimum wage increase and mandatory paid leave and that [p]roviding and tracking paid leave for full and part-time employees will cause a significant financial hardship for the majority of respondents., Reflecting on the River Forest Village Boards unanimous vote in March to opt out of the Cook County ordinances, Oak Park River Forest Chamber of Commerce President Cathy Yen commented that small businesses operate on extremely thin margins, [which] mean there is little excess profit that can be reallocated to employee salaries, according to the Chicago Tribune. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. Minimum wage hikes can stifle job creation and competitiveness, and raise consumer prices, A June 2017University of Washington report on the effects of Seattles minimum wage hike found a 9 percent decrease in hours worked by lower-wage workers and a reduction of over $100 million per year in total payroll for such jobs after the citys wage hike. Under federal law, employers must notify tipped employees that the employer is taking the tip credit, including any changes to their rate of pay. 802 South 2nd Street | Springfield, IL 62704 In October 2016, the Cook County Board also passed an ordinance mandating that employers in Cook County provide each employee with one hour of sick leave for every 40 hours worked, up to 40 hours of paid sick leave per year, for employees who have worked at least 80 hours within a 120-day period. Employers know that the new year brings minimum wage increases for dozens of jurisdictions across the U.S. On Jan. 1, 2023, 40 counties and cities will increase their minimum wage rates. Teenagers (under the age of 18) must be paid the States minimum wage of $9.25. Latest News more. The state minimum wage is currently $12 an hour. %PDF-1.6 % State of Illinois Minimum Wage and Tipped Wage, Cook County Tipped Wage Increase as of January 1, 2022. The minimum wage in Cook County outside of Chicago will remain at $13 per hour because the unemployment rate in 2020 was greater than 8.5%, officials said. But more than 80 percent of Cook Countys 132 municipalities have opted out of the countys minimum wage and sick leave ordinances, with East Dundee voting to opt out July 17. But research shows that increasing the cost of hiring people through minimum wage hikes means many workers with lower skill levels and comparatively little experience will be priced out of the job market altogether, and many job-creating businesses will have a hard time staying afloat. After 2020, the county minimum wage will be subject to increases based on the CPI. Moreover, the income gains for low-wage workers who kept their jobs were mostly due to the strong local economy, with only 25 percent of those gains attributable to the hike in the minimum wage. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Increases in minimum wages can drive some firms out of business entirely. But if 8.5 percent countywide unemployment is high enough to halt increases in the minimum wage under the ordinance, shouldnt the states 12.7 percent black unemployment rate and the fact that 34.3 percent of Cook County 20-to-24-year-old black residents are out of both school and work give lawmakers pause? However, the applicable tipped minimum wage in Cook County will be the state's tipped minimum wage of $7.20 per hour, the county said . A bill to raise the Illinois minimum wage to $15 an hour by 2022 passed the Illinois Senate and House of Representatives in May. The head of government relations for Jewel-Osco grocery stores told the Tribune the grocery chains costs had shot up for its 35 Chicago stores after the city increased its minimum wage, causing Jewel-Osco to hire 5 percent fewer workers the year after the law went into effect. 69 W. Washington Street, By Emmanuel Elone. What to Know About the 2 Candidates Facing Off in the April 4 Runoff Election, All Eyes On a Strong' System That Could Hit Chicago Area Friday, But Much Uncertainty Remains, Secret Service, Police Seen Investigating Business in Suburban Lisle, Who Did Your Ward Vote For? Living Wage Effective January 1, 2023 until June 30, 2023, the living wage rate is $16.50 per hour. The studys authors noted that according to U.S. Bureau of Labor Statistics data, the restaurant industry uses minimum wage workers more than other sectors. And in Skokie, where a move to opt out failed on a 3-3 tie vote July 6, according to the Skokie Review, a trustee who voted to opt out cited her concern for struggling business owners, who would face significant difficulties under the new mandates. Interestingly, Chicagos and Cook Countys ordinances provide that when unemployment in Chicago or Cook County, respectively, reaches 8.5 percent or higher, the minimum wage will not increase the following year. 802 South 2nd Street | Springfield, IL 62704 !function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;rm"E`s3UVH``q[ DAd8qX 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The poverty rate reflects a person's gross annual income. 107 localities opt out of both Cook County ordinances. Last year, the minimum wage was $11 and $6.60, respectively. As of July 1, 2020, the Chicago minimum wage is $13.50 per hour for employers that have four to 20 workers and $14 for employers that . $8.70 (effective July 1, 2022) Cook County $6.30 (current) $7.40 (effective July 1, 2022) Maryland: And local ordinances to hike the minimum wage and mandate paid sick leave now loom over municipalities in Cook County, as the laws will take effect July 1. The minimum wage increase rate is capped at no more 2.5% per year and will not rise if Cook County experiences unemployment of at least 8.5% the previous year. For this reason, more than 50 municipalities in Cook County more than one-third have opted out of the pending minimum wage hike and sick leave mandate, according to the Chicago Sun-Times. 42-13) and rules (Sec. Municipal leaders have expressed concerns about the anti-competitive, job-killing effects of Cook Countys minimum wage increases and new sick leave law and are using home rule authority to exempt their communities from the requirements. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. Subscribe to our blog for the latest employment law news. The minimum wage applies to all employees except agricultural workers ( $8.00 per hour is the minimum wage for most agricultural workers), members of a religious order, workers being trained in certain educational, nonprofit, or religious organizations, and outside sales people. Tipped employees will increase from $7.20 an hour to $7.40 an hour. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. 42-16. Those who did work had fewer hours than they would have without the wage hike., A study released in June by researchers from the University of California, Berkeley, however, found the hike in Seattles minimum wage had no effect on employment in Seattles food services industry. Since Cook County passed its minimum wage and sick leave ordinances in October 2016, Illinois Policy Institute research shows 107 Cook County municipalities have opted out of both ordinances, one municipality has opted out of only the sick leave ordinance, and three municipalities have opted out of only the minimum wage ordinance. More than 50 of Cook Countys 132 municipalities have used their home rule authority to opt out of the countys wage hike and sick leave mandate, and the number of municipalities considering opting out continues to climb, according to WBEZ. All Rights Reserved. The MWO sets the lowest amount an employer must legally pay their employees. As of July 1, 2022, the Minimum Wage to be paid under City contracts or concessionaire agreements pursuant to the Order is $16.00 per hour. 6-105-010 Definitions. The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry by 4-6 percent for each $1 increase in the wage rate. July 1, 2022; Evanston: $12.00 per hour: $13.00 per hour: $13.00 per hour: $13.35 per hour: Chicago: $13.00 per hour: $14.00 per hour: $15.00 per hour: . Rosemont, for example, is home to Allstate Arena, Rivers Casino is located in Des Plaines, and Arlington Heights has the Arlington International Racecourse. 0 Along with the minimum wage increase, the Cook County Board also passed an ordinance mandating that employers in Cook County provide each employee with one hour of sick leave for every 40 hours worked, up to 40 hours of paid sick leave per year, for employees who have worked at least 80 hours within a 120-day period. 6-105-020 Minimum hourly wage. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. Intake interviews are by appointment only, please call or email to make an intake appointment. $13.00. All Rights Reserved. Suite 1130, English-Language Posters. $9.45 Cash Wage. / CBS Chicago. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. Cook Countys minimum wage notice is here. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days' sick leave While the federal minimum wage is $7.25 per hour, and Illinois' statewide minimum wage is. A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. In Cook County, the minimum wage will increase to $13.35 for non-tipped workers and to $7.40 for tipped workers in Barrington Hills, Berwyn, Countryside, Deerfield, Dolton, Evanston, Glencoe, Kenilworth, McCook, Northfield, Oak Brook, Oak Park, Phoenix, Skokie, University Park, Western Springs, Wilmette and Winnetka. More than 50 municipalities have opted out of Cook Countys minimum wage hike, sick days mandate, unemployment in Chicago or Cook County, respectively, reaches 8.5 percent, Des Plaines City Council voted to opt out, reduction of over $100 million per year in total payroll, highest black unemployment rate in the nation. Smaller employers (100 or fewer employees) continue paying at least $13.50 until July. Inflation has rapidly outpaced wage growth, cutting the average Illinoisans pay by $2,200. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. Raising the minimum wage and mandating paid sick leave might sound pro-worker, but leaders in many municipalities in the Chicago area have said these measures could have the opposite effect and result in fewer jobs for residents in their communities. Unlike last year, where the unemployment rate was greater than 8.5%, the unemployment rate is now under 8.5%, which means that the minimum wage for . Within the urban growth boundary, including parts of Clackamas, Multnomah, . The Chicago City Council and Cook County Board effectively admitted that wage hike mandates can depress employment when they included unemployment escape clauses in the ordinances. All Rights Reserved. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. 2022 to $7.20. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. The minimum wage for non-tipped workers remains $13.35. 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 rate that applies to employees of all companies who work within Cook County. Wage Poster the report also found that minimum wage to $ 13.35 for non-tipped workers remains $ 13.35,.... Victims Economic Security and Safety Act - will employer must legally pay their.... An intake appointment its minimum wage to $ 10.00 hurt minority communities pay their employees Plan ( English Version cook county minimum wage 2022... Wage effective January 1, 2022, we saw the Illinois minimum wage for tipped employees at large will... State, inflation has rapidly outpaced wage growth small companies towards $ 15 hour. Labor law posters that are either optional to post, or mandatory only for certain types of employer 1! Rate was greater than 8.5 %, the living wage is currently $ 12, and hurt... 8.5 %, the living wage effective January 1, 2022 and $ 7.40 per hour whom will... County or is issued a notice to employees regarding the minimum wage increases to $ 10.00 firms out of Cook... 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