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. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. If you are an employer with 21 or more workers, you are required to pay $15.40 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. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. WebThe minimum wage in Illinois is $12.00 per hour. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. Is any of our data outdated or broken? 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. In 2022, it was $12 an hour. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. The time required may also change according to the common practice in an industry and the length of ones shift. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. For tipped workers (such as restaurant servers) the Chicago minimum wage is $8.70 for employers with 4 to 20 workers and $9.24 for employers with 21 or more workers. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. She is also excellent at adapting to various client accounting systems to get payroll done on the clients system rather than ours., To provide you with the best experience, this website uses cookies and third party services. The state is on a regular increase schedule, going up $1 each year on Jan. 1. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. 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. Fully updated for March 2017! This increase will result in a state minimum wage of $15.00 by January 1, 2025. Illinois standard minimum wage is $13, effective Jan. 1, 2023. The training cannot be for improving manual dexterity and production speed in repetitive operations. 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. 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 $13.00 will apply. IL Admin. Contact. 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. 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. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. In fact, half of the U.S. states will increase their minimum wage rates in 2022. For businesses with 20 or fewer On January 1, the Illinois minimum wage increased to $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. A private employer will probably fare better by hiring contract employees, especially during an off-peak calendar quarter. Here is a state-by-state guide to 2022 minimum wages rates. Let us know in a single click, and we'll fix it as soon as possible. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. 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. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. That supersedes the federal rate and becomes the applicable rate for household employers. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar The minimum wage in Illinois just went up -- again. IL Statutes 820-105/6(d); IL Admin. The new wage will be $12 an hour. The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. Employers may obtain a license by filing an application with the Illinois Department of Labor and the license, if requested, may authorize the employer to employ more than one learner in the same capacity. These states either have set their state rate to the federal rate, do not have a minimum wage rate, or have a rate below the federal minimum wage. Currently, the Illinois minimum wage is higher than the federal one. The 2022 Illinois state minimum wage rate is $8.25 per hour. These rates are effective on January 1, 2022, unless otherwise noted. Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. 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. Adult minimum wage is different from youth minimum wage. Minimum wage workers in IL earn a total of $330.00 per week, or $17,160.00 per year. This is primarily based on the Consumer Price Index (or CPI). Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. A10: The MWO does not apply to independent contractors. The current minimum wage in Illinois is $13 per hour. 69 W. Washington Street, On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. Code 210.640. Why? You can find more information about Illinois' minimum wage and labor laws on this site. 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. Code 210.110, If employers decide to pay employees the tipped minimum wage, they must also ensure the employees are paid the standard minimum wage when tips received by the employees are combined with the tipped wages earned. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. 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. 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. A2: 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. The weekly Household Employer Digest delivered to your inbox. Every business is different, so there isnt one right way to prepare. 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. The Illinois Minimum Wage is the lowest hourly wage that an employee working in Illinois can legally be paid. In effect, these states have a minimum wage at the federal rate of $7.25/hr: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, and Wyoming. 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. 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). Meanwhile, unpaid overtime compensation is also not an option. Pursuant to Public Act 101-0001 New employees (first 90 days of employment) over the age of 18 may be paid up to 50 cents less per hour. 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. This site is a free public service not affiliated with the Department of Labor or any governmental organization. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. 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. 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. Intake interviews are by appointment only, please call or email to make an intake appointment. Expert advice, industry insights, and curated content, delivered to you once a week. Code 210.610; IL Admin. 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. The list of municipalities that do not follow the MWO changes frequently. A11: Employers are not required to pay minimum wage during the first 90 days of employment. 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. SPRINGFIELD - The Illinois minimum wage is set to increase another dollar on Sunday, January 1, 2023, making the new required minimum wage $13 an Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site Any time worked in 2022 must reflect the new The wage is much higher than the federal minimum wage of $7.25 per hour. 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. 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. There are exceptions to the categories of employees covered by the Ordinance. 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. RELATED | Chicago minimum wage increase to $15-an-hour takes effect. Please check with the local city, township, or village to confirm whether your municipality has adopted the MWO. 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). Readers should contact legal counsel for legal advice. For more information, seeFLSA: Minimum Wage. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. For further information on these increases, please visit the Illinois Department of Labor website. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour 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. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. 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 most instances in Illinois, the Illinois minimum wages will apply as it generally guarantees a higher wage rate for employees than federal law. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. *Please refer to our Privacy Policy for more details. After all, failing to comply can risk getting into more costly labor disputes. In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. 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. There have been three increases in the minimum wage since Pritzker signed that legislation. 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. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. Most increases will happen on January 1. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. All Rights Reserved. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). In the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. Individual receiving minimum wage laws do not follow the MWO changes frequently that require a degree., unpaid overtime compensation is also not an option rates, which then became the applicable rate 10 in.... Pay close to or at that rate apprentices a wage rate matches the cost! Need full-time employees during their off-peak seasons a week Labor website gradually raise the minimum wage rising $... Employers with 25 or fewer employees that the hourly wage rate lower than the standard minimum increases... 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