Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. 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). 42-13) and rules (Sec. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. How to Do Payroll Taxes and Process Payroll Yourself There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. A1: The MWO sets the lowest amount an employer must legally pay their employees. Copyright 2023 NBCUniversal Media, LLC. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. 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. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. JavaScript is required for full functionality of this site. Code 210.110; IL Admin. Not providing adequate paid breaks can also be counted as unpaid wages. 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). Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. 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. 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? 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. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. New employees (first 90 days of employment) over the age of 18may be paid up to 50 cents less per hour. Federal Minimum Wage | Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. You can also explore other employee options. The Human Rights Commission does not provide lawyers or legal advice. 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. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. Tipped employees may be paid 60% of the hourly minimum wage. Get an Illinois all-in-one labor law poster. Content 2023 Minimum-Wage.org, all rights reserved. Illinois minimum wage for tipped employees is $7.80. 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. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. The time required may also change according to the common practice in an industry and the length of ones shift. 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? Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. 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. 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. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. Our investigators conduct neutral fact-finding investigations, which includes gathering information and conducting interviews to determine if a violation of the MWO has occurred. The federal minimum wage rate was raised to $7.25/hour in 2009. | fair labor standards act minimum wage minimum wage rates. The training cannot be for improving manual dexterity and production speed in repetitive operations. 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. The minimum wage will continue to be subject to Most Common Payroll Mistakes and How to Avoid Them. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. Fully updated for March 2017! Illinois minimum wage for tipped employees will increase in subsequent years as follows: Illinois Department of Labor Minimum Wage, Employers may pay the tipped minimum wage to employees in occupations where gratuities are customarily and usually received and have been recognized as part of the compensation for hiring purposes. Employers cannot displace any other workers with learners and cannot use learners to depress the wage rates or working standards for experienced workers performing similar work. She is also excellent at adapting to various client accounting systems to get payroll done on the clients system rather than ours., To provide you with the best experience, this website uses cookies and third party services. This is primarily based on the Consumer Price Index (or CPI). Do you really need to employ all of them? The new wage will be $12 an hour. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. Is the minimum wage rate in Illinois increasing in 2022? The Illinois minimum wage is scheduled to increase to $14 per hour by Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. Posted 3 days ago. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. IL Admin. WebThe table below lists the current prevailing 2023 minimum wage rates for every state in the United States. Most increases will happen on January 1. In addition to Cook County, there are other localities in Illinois that have passed municipal minimum wage legislation. *Please refer to our Privacy Policy for more details. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. 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. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. IL Statute 820-105/4. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. 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. Here is a state-by-state guide to 2022 minimum wages rates. The intermediate increases are: 2022. 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. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. 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. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. IL Admin. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. Contact. 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. Copyright 2023 NBCUniversal Media, LLC. 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). In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. 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. Need help understanding how to pay your nanny the right way? IL Admin. 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). WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. The minimum wage increase is part of an annual rise set to continue through 2025. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Another efficient way is to increase your companys productivity during the set working hours. 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. Suppose an employer chooses to pay employees minimum wage. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois 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.". Their tipped workers, such as food servers, also experienced an increase of $8.40 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. 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. Many states are also increasing their required hourly rate. 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. Usage is subject to our Terms and Privacy Policy. Recommended Articles How can employers in Illinois better meet the rising minimum wage standard. The current Illinois minimum wage of $12.00 per hour is the lowest amount a non-exempt employee in Illinois can legally be paid for hourly work. Special minimum wage rates, such as the "Illinois waitress minimum wage" for tipped employees, may apply to certain workers. 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. Every business is different, so there isnt one right way to prepare. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage As of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped The first step is to assess your minimum wage workers. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. A10: The MWO does not apply to independent contractors. 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 Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Leave all of that to the household employment experts at GTM Payroll Services. Employers carry the burden of establishing tipped employees received enough tips to ensure the employee was paid the standard minimum wage. Effective 01/01/2022 the Illinois state minimum wage will increase to $12.00 per hour. Earnfare participants may now earn up to $420 per month due to the state This isnt the traditional practice. 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 Since that legislation was signed, there have been four increases in the minimum wage. Let us know in a single click, and we'll fix it as soon as possible. IL Admin. A12:You should first check to see if the municipality where you work has a different minimum wage. A domestic employer can be sued by their worker for back wages and/or be fined by their states labor agency for not following minimum wage rates. Is lunch time required by labor laws in Illinois? For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. 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. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. What is the new minimum wage? The youth minimum wage rate will gradually rise to $13 an hour by 2025. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. 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? Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. 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