This increase will result in a state minimum wage of $15.00 by January 1, 2025. In 2019, Illinois Gov. 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. 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.. The 2022 Illinois state minimum wage rate is $8.25 per hour. IL Admin. Please reach out to our payroll specialists at payroll@edercasella.com should you have any questions. SPRINGFIELD - The Illinois minimum wage is set to increase another dollar on Sunday, January 1, 2023, making the new required minimum wage $13 an 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.". 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. 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? Some states and cities automatically increase their rates annually. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. 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. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. 42-13) and rules (Sec. rate that applies to employees of all companies who work within Cook County. 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. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. 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. Do you really need to employ all of them? In 2019, Illinois Gov. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. 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. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. IL Admin. Pursuant to the Minimum Wage ordinance (MWO) (Sec. The list of municipalities that do not follow the MWO changes frequently. 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. 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. Click any state for details about the minimum wage, exemptions, and other state labor laws. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. 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. Employers must implement a 20-minute break for each 7.5-hour shift. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. 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. The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. A10: The MWO does not apply to independent contractors. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. It also seeks to prevent oppressive wage rates. The minimum wage will continue to be subject to Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. The department said employees with problems regarding the minimum wage can file a complaint with IDOL at the following https://www2.illinois.gov/idol/Pages/Complaints.aspx or call 312-793-2800. These FAQs should not be interpreted as legal advice. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. 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. Complaint forms and additional information can be found online. 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. WebThe minimum wage in Illinois is $12.00 per hour. Is the minimum wage rate in Illinois increasing in 2022? Understanding the Federal Minimum Wage Get an Illinois all-in-one labor law poster. The current minimum wage in Illinois is $13 per hour. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. 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. 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. Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. Earnfare participants may now earn up to $420 per month due to the state 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. 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. You can find more information about Illinois' minimum wage and labor laws on this site. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Copyright 2023 NBCUniversal Media, LLC. Here is a state-by-state guide to 2022 minimum wages rates. Illinois. All Rights Reserved. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. 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. The federal minimum wage is $7.25 an hour. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. This is primarily based on the Consumer Price Index (or CPI). Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. The Human Rights Commission does not provide lawyers or legal advice. 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. This isnt the traditional practice. 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. A1: The MWO sets the lowest amount an employer must legally pay their employees. Meanwhile, unpaid overtime compensation is also not an option. 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). 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). Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. Posted 3 days ago. Their tipped workers, such as food servers, also experienced an increase of $8.40 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). Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour It's $14 an hour for smaller businesses in Chicago. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. Need help understanding how to pay your nanny the right way? 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. Chicago, IL 60602. We have converted it to an hourly wage for the sake of comparison. 42-13) and rules (Sec. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. 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. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. IL Admin. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. As of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped For businesses with 20 or fewer Fully updated for March 2017! 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. Most increases will happen on January 1. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on 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.

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