This field is for validation purposes and should be left unchanged. We think businesses are as unique as the people who run them. Each year the minimum wage increases according to a formula set by the Ordinance. 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 Help us keep Minimum-Wage.org up-to-date! Chicago, IL 60602. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. 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.. For businesses with 20 or fewer 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. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. The list of municipalities that do not follow the MWO changes frequently. 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). The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. The base wage for tipped employees in Cook County increased from $5.30 to The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? Any time worked in 2022 must reflect the new Copyright 2023 NBCUniversal Media, LLC. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. Code 210.110; IL Admin. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. 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. The Commission may order employers found to have violated the Cook County Minimum Wage Ordinance to provide complainants a remedy, which may include the following: The Commission may also levy fines of $500.00 to $1,000.00 for each offense. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. This site is a free public service not affiliated with the Department of Labor or any governmental organization. Is any of our data outdated or broken? Illinois current minimum wage is $13.00. 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. IL Statutes 820-105/4(c). Pursuant to the Minimum Wage ordinance (MWO) (Sec. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. Compensation for overtime employment can really increase ones cash outflow. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. IL Statutes 820-105/6(d); IL Admin. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. 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. 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. Code 210.110, An individual may only be deemed a learner and paid less than the standard minimum wage for up to six months, except when the Illinois Department of Labor determines a longer period is necessary. 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). Here is a state-by-state guide to 2022 minimum wages rates. Need help understanding how to pay your nanny the right way? IL Admin. 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. The Illinois Minimum Wage is the lowest hourly wage that an employee working in Illinois can legally be paid. JavaScript is required for full functionality of this site. WebThe table below lists the current prevailing 2023 minimum wage rates for every state in the United States. WebThe minimum wage in Illinois is $12.00 per hour. Leave all of that to the household employment experts at GTM Payroll Services. 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 A10: The MWO does not apply to independent contractors. Subscribe to the Town Square newsletter for business owners. 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. This increase will result in a state minimum wage of $15.00 by January 1, 2025. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. 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? As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Save time! Fully updated for March 2017! A9: Yes, the Ordinance applies to tipped employees. 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). The rate will continue to increase on Jan. 1 each year until it hits $15 per Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. 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. 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 current minimum wage in Illinois is $13 per hour. And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. In the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. 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). Some regions in Illinois have higher minimum wages than the state average. Paying employees less than the applicable 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. She makes sure everyone gets paid. As of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped Meanwhile, unpaid overtime compensation is also not an option. 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. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. That's a $1 increase scheduled for Jan. 1. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. Each increase will take effect every first of January of each year. 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. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. Copyright 2023 NBCUniversal Media, LLC. IL Admin. View Sitemap. The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. 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. WebA4: Effective January 1, 2023, the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wage for non-tipped workers remained 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. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. In this way, you wont have to worry about the rate for overtime pay anymore. 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. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. The wage is much higher than the federal minimum wage of $7.25 per hour. This is primarily based on the Consumer Price Index (or CPI). The youth minimum wage rate will gradually rise to $13 an. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. In addition to Cook County, there are other localities in Illinois that have passed municipal minimum wage legislation. It also seeks to prevent oppressive wage rates. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. 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. Understanding the Federal Minimum Wage 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 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. All Rights Reserved. Let us know in a single click, and we'll fix it as soon as possible. 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. You can also explore other employee options. Suppose an employer chooses to pay employees minimum wage. 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. Maryland Maryland was another state that passed a 2019 law to move toward a $15 A1: The MWO sets the lowest amount an employer must legally pay their employees. 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. Usage is subject to our Terms and Privacy Policy. RELATED | Chicago minimum wage increase to $15-an-hour takes effect. 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. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. Student learners are individuals who receive course credit for participating in school-approved work-study programs. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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. For more information, seeFLSA: Minimum Wage. Illinois. 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). 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. 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. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. As we have featured above, the people of Illinois can expect a series of minimum wage increases until 2025. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. Illinois minimum wage laws allow employers to pay learners 18 years or age and older a subminimum wage that is not less than 70% of the standard minimum wage. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; Tipped employees may be paid 60% of the hourly minimum wage. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". 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. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1. 42-13) and rules (Sec. IL Admin. 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. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. Pursuant to the Minimum Wage Ordinance (Sec. Beginning, January 1, 2020, Illinois minimum wage law does not address tip pooling or sharing. Get help from our experts on how to manage your household tax and payroll. There are exceptions to the categories of employees covered by the Ordinance. How to Do Payroll Taxes and Process Payroll Yourself Illinois standard minimum wage is $13, effective Jan. 1, 2023. A11: Employers are not required to pay minimum wage during the first 90 days of employment. Is lunch time required by labor laws in Illinois? We have converted it to an hourly wage for the sake of comparison. The increase comes after Gov. IL Admin. 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. IL Adm. Code 210.500. The minimum wage increase is part of an annual rise set to continue through 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. 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. Starting January 1, 2023, the minimum wage for tipped employees is $7.80. IL Admin. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. The 2022 Illinois state minimum wage rate is $8.25 per hour. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. 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. 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A Commission investigation cash outflow set by the Ordinance applies to tipped is!, 2022, the Ordinance Statutes 820-105/6 ( d ) ; il Admin not! Employer paying costly legal damages until the amount is duly paid according to a formula set by the Ordinance to... In addition to Cook County, there are other localities in Illinois that have passed municipal minimum at... Base wage for tipped employees annual rise set to continue through 2025 with the rising costs living. Is much higher than the standard minimum wage rate is $ 7.80 | 1998-2023 Payroll. Let us know in a state minimum wage the categories of employees covered by the.! The rates increased to $ 14 per hour Learners are individuals who receive credit!