Contact. 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). In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. 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. 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. 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. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. 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? And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. 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. The minimum wage equals about $480.00 per 40-hour week and about $24,960.00 per year. 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. WebThe projected federal minimum wage in 2023. 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. There have been three increases in the minimum wage since Pritzker signed that legislation. 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). It's $14 an hour for smaller businesses in Chicago. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. 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. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Tipped employees may be paid 60% of the hourly minimum wage. 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. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. Each increase will take effect every first of January of each year. Help us keep Minimum-Wage.org up-to-date! 42-13) and rules (Sec. Compensation for overtime employment can really increase ones cash outflow. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. 69 W. Washington Street, Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour 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 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. As we have featured above, the people of Illinois can expect a series of minimum wage increases until 2025. The minimum wage in Illinois just went up -- again. It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. 42-13) and rules (Sec. The base wage for tipped employees in Cook County increased from $5.30 to Is the minimum wage rate in Illinois increasing in 2022? Let us know in a single click, and we'll fix it as soon as possible. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. 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. On January 1, the Illinois minimum wage increased to $12 an hour. Expert advice, industry insights, and curated content, delivered to you once a week. 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. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. Learn how to enable JavaScript in your web browser. 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. 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 In fact, half of the U.S. states will increase their minimum wage rates in 2022. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. 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. 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. Pursuant to the Minimum Wage Ordinance (Sec. Not providing adequate paid breaks can also be counted as unpaid wages. 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. 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? Get an Illinois all-in-one labor law poster. These workers must be paid the Countys minimum wage during the entire duration of employment. IL Statutes 820-105/4(c). The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. 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. You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. While Illinois' state minimum wage is $12.00 per hour, Cook County has set its own, higher minimum wage rate that applies to employees of all companies who work within Cook County. 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 $12.00 will apply. 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). This isnt the traditional practice. 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. The minimum wage will continue to be subject to Illinois. You may contact a Human Rights Investigator if you have any questions about the complaint process. IL Admin. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. In 2019, Illinois Gov. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. IL Statutes 820-105/6(d); IL Admin. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. 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 All Rights Reserved. Each year the minimum wage increases according to a formula set by the Ordinance. The 2022 Illinois state minimum wage rate is $8.25 per hour. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. | fair labor standards act minimum wage minimum wage rates. 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. Since that legislation was signed, there have been four increases in the minimum wage. It also seeks to prevent oppressive wage rates. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. What is the new minimum wage? State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. You can find a list of highest and lowest minimum wage rates here . Illinois minimum wage laws allow employers to pay workers with disabilities a subminimum wage rate lower than the standard minimum wage if they have received a license from the Illinois Department of Labor to do so. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. Read our, Illinois Employers Owe Federal Unemployment Tax. 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. 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. 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. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. Some states and cities automatically increase their rates annually. 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. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. The minimum wage increase is part of an annual rise set to continue through 2025. Fully updated for March 2017! On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. 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). All rights reserved, Chicago's Minimum Wage Will Increase July 1. IL Adm. Code 210.500. Currently, the Illinois minimum wage is higher than the federal one. Usage is subject to our Terms and Privacy Policy. State Minimum Wages | Copyright 2023 NBCUniversal Media, LLC. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. Code 210.640. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? Instead of printing out pages of mandatory Illinois and Federal labor law posters, you can purchase a professional, laminated all-in-one labor law poster that guarantees compliance with all Illinois and federal posting requirements. 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. The minimum wage will increase to $11 per hour for standard workers; $6.60 per hour for tipped workers, and $8.50 per hour for workers under the age of 18 who work less than 650 hours in a calendar year. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. Intake interviews are by appointment only, please call or email to make an intake appointment. A4: Effective 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). 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 minimum wage will increase in subsequent years as follows: This is according to theIL Statute 820-105/4,Illinois Department of Labor 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. IL Statute 820-105/4. This increase will result in a state minimum wage of $15.00 by January 1, 2025. Code 210.610; IL Admin. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. J.B. Pritzker said in a statement. The Human Rights Commission does not provide lawyers or legal advice. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. The training cannot be for improving manual dexterity and production speed in repetitive operations. 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. 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. 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. The wage is much higher than the federal minimum wage of $7.25 per hour. Copyright 2023 WLS-TV. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. A12:You should first check to see if the municipality where you work has a different minimum wage. 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. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. Leave all of that to the household employment experts at GTM Payroll Services. If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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