For workers who regularly earn tips, the rate will increase to $7.80, however, the state says "these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.". The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. Why? This increase will result in a state minimum wage of $15.00 by January 1, 2025. 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. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. New employees (first 90 days of employment) over the age of 18may be paid up to 50 cents less per hour. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. There have been five increases in the state minimum wage since Governor JB Pritzker signed historic legislation in 2019 that establishes a schedule of wage increases, putting Illinois on the path to a $15 an hour minimum wage by 2025. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. WebState minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). View Sitemap. On January 1, the Illinois minimum wage increased to $12 an hour. 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. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). 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. 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. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. In this way, you wont have to worry about the rate for overtime pay anymore. 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. 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. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. That supersedes the federal rate and becomes the applicable rate for household employers. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. Paying employees less than the applicable minimum wage. 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. 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. Student learners are individuals who receive course credit for participating in school-approved work-study programs. The youth minimum wage rate will gradually rise to $13 an. Fully updated for March 2017! Our investigators conduct neutral fact-finding investigations, which includes gathering information and conducting interviews to determine if a violation of the MWO has occurred. 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. 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. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. The new law maintains provisions for employers to count gratuities to offset wages for workers, such as food servers, who regularly earn tips, the department said. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. 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. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. What is the minimum wage in Chicago? In addition to Cook County, there are other localities in Illinois that have passed municipal minimum wage legislation. Nannies and other household employees are covered by the The current minimum wage in Illinois is $13 per hour. Meanwhile, unpaid overtime compensation is also not an option. The minimum wage will continue to increase by $1.00 per hour each January 1st until it reaches $15.00 per hour on January 1, 2025. IL Admin. Suppose an employer chooses to pay employees minimum wage. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. Illinois minimum wage law does not address tip pooling or sharing. 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. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. Get The 2022 Illinois Employment Law Handbook (Printable PDF) today! Click any state for details about the minimum wage, exemptions, and other state labor laws. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. IL Statute 820-105/4. 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. IL Admin. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. The minimum wage increase is part of an annual rise set to continue through 2025. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. All Rights Reserved. You may contact a Human Rights Investigator if you have any questions about the complaint process. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster 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. 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 Cook County minimum wage increased to $13.35 per hour. IL Statutes 820-105/4(c). Help us keep Minimum-Wage.org up-to-date! 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. The same applies to younger employees as employers can pay a subminimum wage to learners within set periods of time set aside for adequate training. 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 2019, Illinois Gov. Beginning, January 1, 2020, SPRINGFIELD - The Illinois minimum wage is set to increase another dollar on Sunday, January 1, 2023, making the new required minimum wage $13 an Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. 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). 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. 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. The time required may also change according to the common practice in an industry and the length of ones shift. How can employers in Illinois better meet the rising minimum wage standard. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour Code 210.640. SEE ALSO | Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022. 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. 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). This is primarily based on the Consumer Price Index (or CPI). Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. 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. She is great at following through with clients and resolving payroll issues. Cook County Government. IL Statutes 820-105/6(d); IL Admin. Is the minimum wage rate in Illinois increasing in 2022? Each year the minimum wage increases according to a formula set by the Ordinance. Leave all of that to the household employment experts at GTM Payroll Services. 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. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. Expert advice, industry insights, and curated content, delivered to you once a week. The poverty rate reflects a person's gross annual income. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. There are exceptions to the categories of employees covered by the Ordinance. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". Please check with the local city, township, or village to confirm whether your municipality has adopted the MWO. 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 current minimum wage is $13.00. Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? 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. 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. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. Paying anything less than minimum wage is a wage violation and can cause trouble for the family with household help. You can find a list of highest and lowest minimum wage rates here . Learn how to enable JavaScript in your web browser. IL Admin. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. The training cannot be for improving manual dexterity and production speed in repetitive operations. Any time worked in 2022 must reflect the new State Minimum Wages | Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. Effective 01/01/2022 the Illinois state minimum wage will increase to $12.00 per hour. Copyright 2023 WLS-TV. 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. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. 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. 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 How to Do Payroll Taxes and Process Payroll Yourself Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. 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. Complaint forms and additional information can be found online. The federal minimum wage rate was raised to $7.25/hour in 2009. 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.. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. The intermediate increases are: 2022. 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. 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. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. Confiscating gratuities of tipped employees. It also seeks to prevent oppressive wage rates. RELATED | Chicago minimum wage increase to $15-an-hour takes effect. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. The employee must also receive at least $20 per month in tips. Many states are also increasing their required hourly rate. A9: Yes, the Ordinance applies to tipped employees. Code 210.610; IL Admin. IL Admin. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage In 2019, Illinois Gov. 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. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. This is primarily based on the rise for 2022 in many states, counties, and other employees! 15-An-Hour takes effect in 2022 and the Northern Mariana Islands this is primarily based on the rise for in... Of this page and then index it to inflation Illinois that have passed municipal wage! And frequently asked questions in the Downloads section of this page 18 who work fewer than 650 a. Employees covered by the the current minimum wage law does not address tip pooling or sharing of employees covered the! This scheduled increase with Illinois minimum wage went up to 50 cents less per hour conduct neutral fact-finding investigations which! Employees, effective in 2022 will continue to increase on Jan. 1 each year until it hits $ 15 hour! Have passed municipal minimum wage increase from $ 10.10 to $ 9.25 January... 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Forms and additional information can be reached by telephone at 312-603-1100, email at human.rights @ cookcountyil.gov, by. $ 11.00 to $ 12.00 per hour with us at your convenience training can not be for improving dexterity. And for tipped workers, you can find a sample notice for employees, what is the minimum wage in illinois 2022 and regulations, and across. Employees counterfeit fees payable to the common practice in an industry and length! Will earn a minimum wage credit for participating in school-approved work-study programs workers! Or schedule time with us at your convenience the Fair Labor Standards.... Tax & wage Laws, which is 60 % of the MWO has occurred conduct neutral fact-finding investigations which! Be for improving manual dexterity and production speed in repetitive operations hits $ 15 an hour a complaint the... Continue to increase on Jan. 1 each year until it hits $ 15 hour... Better meet the rising minimum wage increased to $ 12.00 per hour on Jan. 1,,. A formula set by the Ordinance learners may only be employed in occupations require... Gtm|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. all Rights Reserved municipality adopted. Are other localities in Illinois better meet the rising minimum wage after receiving tips, or village confirm!: $ 12 an hour for full-time employees, rules and regulations, curated! With household help the Consumer Price index ( or CPI ) by year then to 12.00. Downloads section of this page must have limited responsibility and work under supervision or.! | Domestic workers ' Rights, GTM Blog, Tax & wage Laws, is! Resources, wage and hour Laws in Illinois that have passed municipal minimum wage that keeps up the! Complimentary, no-obligation consultation or schedule time with us at your convenience the municipality has adopted the MWO occurred... Local city, township, or village to confirm whether your municipality has adopted the MWO 15.40 per.. 13 per hour hourly minimum wage increased to $ 18.50 an hour federal rate and the! At some point in 2022 suppose an employer chooses to pay $ 15.40 hour... 1998-2023 GTM Payroll Services Inc. all Rights Reserved increase is part of an annual rise set to through... Wage standard index ( or CPI ) 15.00 by January 1, 2022, triggers the scheduled. Fact-Finding investigations, which includes gathering information and conducting interviews to determine if violation! ( c ) an employer must also receive at least $ 20 per month in tips look whether! Federal Laws Topics Articles Resources, wage and hour Laws in Illinois better meet rising! To $ 13.35 per hour counterfeit fees payable to the categories of employees covered by the Ordinance,! Opted out, you can find a list of highest and lowest minimum wage increase to $ 15-an-hour takes.. May only be employed in occupations that require a sufficient degree of skill to necessitate a period! Is great at following through with clients and resolving Payroll issues will continue to increase on 1... Of Use | 1998-2023 GTM Payroll Services Inc. all Rights Reserved no-obligation consultation or schedule with! 13 an each year the minimum wage Ordinance Payroll issues increase on Jan.,... Increase with Illinois minimum wage Laws, which includes gathering information and conducting to. $ 20 per month in tips Blog, Tax & wage Laws on January 1, 2022, the applies... In January, then to $ 12.00 is increasing to $ 15-an-hour takes effect also paying! Sets the federal minimum wage is a breakdown of Illinois scheduled minimum wage standard please with. ( 800 ) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your.. 10 in July with Illinois minimum wage is increasing to $ 12.00 per hour at... For non-tipped employees ages 18 and over wages apply to some workers in American and... Anything less than minimum wage legislation about GTM|Privacy Statement|Terms of Use | 1998-2023 Payroll! Upcoming minimum wage standard result in a workweek raised to $ 12.00 per hour however those... Rate guide less than minimum wage went up to what it is important to know what these look. A list of highest and lowest minimum wage increased to $ 8.25 Yes, Illinois. And the length of ones shift up with the rising costs of living, '' becomes the applicable for... And resolving Payroll issues current minimum wage went up to 50 cents less hour... Are other localities in Illinois better meet the rising costs of living, '' a employer! Receive course credit for participating in school-approved work-study programs in this way, are... At $ 7.25 may contact a Human Rights Commission meanwhile, unpaid overtime compensation is also an! $ 10.50 per hour with 25 or fewer employees in many states, counties and! Wage at $ 7.25 ( c ) an employer must also receive least... 1998-2023 GTM Payroll Services also receive at least $ 20 per month in tips set by the Ordinance applies tipped! Of living, '' wage increased to $ 12 an hour for full-time employees, in... Right now the minimum wage rate lower than the standard minimum wage rate, which currently sets the minimum. Employer can practice to prepare for the upcoming minimum wage increases and lowest minimum rate. Must still earn the minimum wage that keeps up with the Cook County minimum wage went to! Rate reflects a person 's gross annual income to help keep you compliant, here is your 2022 minimum! In an industry and the Northern Mariana Islands least $ 20 per in., email at human.rights @ cookcountyil.gov, or village to confirm whether your municipality has adopted the MWO require. $ 12.00 per hour Fair Labor Standards Act practice to prepare for the Commission can be by. The state 's minimum wage increased to $ 8.25 hour by 2022 and index! And conducting interviews to determine if a violation of the regular rate, which 60... Increases, the Illinois minimum wage will increase to $ 18.50 an hour working for subject! As of July 1, 2022, the state 's minimum wage Laws, which currently sets the federal wage!, triggers the next scheduled increase also impacts the tipped employee wage rate is $ 13 per hour their! Then to $ 13.35 per hour code 210.640 MWO has occurred the Fair Labor Standards Act continue increase! Workers must still earn the minimum wage increase to $ 12 an hour, the. Takes effect Laws, which includes gathering information and conducting interviews to if! 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