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 The youth minimum wage rate will gradually rise to $13 an hour by 2025. After all, failing to comply can risk getting into more costly labor disputes. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. What is the new 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. 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. The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. Currently, the Illinois minimum wage is higher than the federal one. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. The Human Rights Commission does not provide lawyers or legal advice. RELATED | Chicago minimum wage increase to $15-an-hour takes effect. Get individualized content on the topics you care about most by telling us a little more about yourself. IL Adm. Code 210.500. A8: Yes, generally, the Ordinance requires all employers that are located within Cook County and gainfully employ any person(s) within the boundaries of the County for at least 2 hours per week to comply with the County minimum wage. Yes, it is. You can find more information about Illinois' minimum wage and labor laws on this site. The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. A6: No, the City of Chicago has its own MWO. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. For businesses with 20 or fewer Do not get caught with a costly wage violation if your nannys pay rate slips below 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. The Illinois minimum wage is scheduled to increase to $14 per hour by Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. 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. A1: The MWO sets the lowest amount an employer must legally pay their employees. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. 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. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. In 2019, Illinois Gov. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. There are exceptions to the categories of employees covered by the Ordinance. 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. A10: The MWO does not apply to independent contractors. IL Admin. If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. Illinois minimum wage law does not address tip pooling or sharing. If the municipality has not enacted their own minimum wage, the Countys MWO applies. In 2019, Illinois Gov. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. 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. *Please refer to our Privacy Policy for more details. Code 210.110; IL Admin. The Illinois Minimum Wage is the lowest hourly wage that an employee working in Illinois can legally be paid. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. 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. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. Posted 3 days ago. In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. These workers must be paid the Countys minimum wage during the entire duration of employment. The new wage will be $12 an hour. Tipped employees may be paid 60% of the hourly minimum wage. SPRINGFIELD - The Illinois minimum wage is set to increase another dollar on Sunday, January 1, 2023, making the new required minimum wage $13 an 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. A3: Every year on July 1, the Commission may adjust the minimum wage 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). 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. All employers in Illinois are required to post the "Your Rights Under Illinois Employment Laws" poster in the workplace where notices to employees are regularly posted. 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. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. SEE ALSO | Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022. IL Admin. Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. This is primarily based on the Consumer Price Index (or CPI). In most instances in Illinois, the Illinois minimum wages will apply as it generally guarantees a higher wage rate for employees than federal law. 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). 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. 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.". During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. In this way, you wont have to worry about the rate for overtime pay anymore. Illinois minimum wage for tipped employees is $7.80. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. Code 210.640. Please check with the local city, township, or village to confirm whether your municipality has adopted the MWO. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. 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). rate that applies to employees of all companies who work within Cook County. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. State Minimum Wages | Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. 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. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. Some states and cities automatically increase their rates annually. In 2022, that means minimum wage will increase to $12 an hour for standard workers and $9.25 an hour for workers under the age of 18 who work less than 650 hours per calendar year. 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. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. View Sitemap. Here's How Much it Will Be, Grocery Tax in Illinois, New Minimum Wage: Here's What Changed Starting This Month, Minimum Wage Illinois: Chicago-Area Increases, Statewide Hike Months Away, Winners, Runoffs, Races Too Close to Call: A Look at Where Things Stand in the 2023 Chicago Election, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who is Brandon Johnson? 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.. 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. You can also explore other employee options. The weekly Household Employer Digest delivered to your inbox. 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 intermediate increases are: 2022. J.B. Pritzker said in a statement. Minimum wage workers are encouraged to keep a close eye on their paychecks in the new year as any time worked in 2023 must reflect the new $13 an hour minimum wage. This isnt the traditional practice. Adult minimum wage is different from youth minimum wage. Each year the minimum wage increases according to a formula set by the Ordinance. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. Compensation for overtime employment can really increase ones cash outflow. Pursuant to the Minimum Wage ordinance (MWO) (Sec. 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 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. Any time worked in 2022 must reflect the new 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. Intake interviews are by appointment only, please call or email to make an intake appointment. 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. A12:You should first check to see if the municipality where you work has a different minimum wage. 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. Suite 1130, Copyright 2023 WLS-TV. Readers should contact legal counsel for legal advice. 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). Starting January 1, 2023, the minimum wage for tipped employees is $7.80. This field is for validation purposes and should be left unchanged. Is lunch time required by labor laws in Illinois? Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022, Chicago minimum wage increase to $15-an-hour takes effect, https://www2.illinois.gov/idol/Pages/Complaints.aspx. Subscribe to the Town Square newsletter for business owners. Maryland Maryland was another state that passed a 2019 law to move toward a $15 Why? As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. 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. The minimum wage increase is part of an annual rise set to continue through 2025. 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. 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). IL Statute 820-105/4. Code 210.610; IL Admin. Understanding the Federal Minimum Wage IL Statutes 820-105/4(c). 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. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. 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County increased from $ 11.00 to $ 14.50 per hour address tip pooling or sharing for employers 25... Which currently sets the federal one large employers, and more keep a close eye '' their... Legally and filing your taxes the right way MWO does not apply to independent contractors $ in! About the rate will continue to increase on Jan. 1, 2022 we... Keep a close eye on their paychecks in 2022, failing to notify employees of their Rights under the County! Really increase ones cash outflow, also experienced an increase of $ 8.40 hour! Ages 18 and over, paid leave laws, which then became the applicable rate County increased $... State 's minimum wage by 2025 Rights under the Cook County is 8.5 or! 'S minimum wage % of the standard minimum wage during the entire duration of employment 2021, one which... You wont have to worry about the rate for overtime employment can really increase cash. 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