Copyright 2023 WLS-TV. 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. Beginning, January 1, 2020, Employers must implement a 20-minute break for each 7.5-hour shift. 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.. Not providing adequate paid breaks can also be counted as unpaid wages. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. Why? Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new 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. Most increases will happen on January 1. 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. If this gradual minimum wage increase continues, Illinois will become the first state to enjoy a $15 minimum wage rate. Compensation for overtime employment can really increase ones cash outflow. Readers should contact legal counsel for legal advice. These FAQs should not be interpreted as legal advice. In 2022, it was $12 an hour. Suite 1130, 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. A1: The MWO sets the lowest amount an employer must legally pay their employees. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. Here is a state-by-state guide to 2022 minimum wages rates. 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. The minimum wage increase is part of an annual rise set to continue through 2025. 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.". These workers must be paid the Countys minimum wage during the entire duration of employment. A6: No, the City of Chicago has its own MWO. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. 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. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. All Rights Reserved. View Sitemap. 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 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. The state is on a regular increase schedule, going up $1 each year on Jan. 1. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. 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. There are exceptions to the categories of employees covered by the Ordinance. Read our, Illinois Employers Owe Federal Unemployment Tax. 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. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. 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. Let us know in a single click, and we'll fix it as soon as possible. The minimum wage in Illinois just went up -- again. IL Statutes 820-105/4(c). Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. Do you really need to employ all of them? Get your free:Complete Guide to Household Payroll, schedule time with us at your convenience, $14 (effective July 1, 2022; until then $13/hr), $11 (effective September 30, 2022; until then $10/hr), $14 (for 10 or fewer employees; effective July 1, 2022; until then $13.50/hr), $13.50 (for small employers; effective July 1, 2022; until then $12.50/hr), $10.75 (for 5 or fewer employees; effective July 1, 2022; until then $10/hr), $9.50 (effective July 1, 2022; until then $8.75/hr), $10.50 (effective July 1, 2022; until then $9.75/hr), $13.50 (effective July 1, 2022; until then $12.75/hr), $14.75 (effective July 1, 2022; until then $14/hr), $12.50 (effective July 1, 2022; until then $12/hr), $17.27 (or $15.75/hour if employer pays $1.52/hour toward employees medical benefits). As we have featured above, the people of Illinois can expect a series of minimum wage increases until 2025. IL Statutes 820-105/6(d); IL Admin. She is great at following through with clients and resolving payroll issues. 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. Code 210.110; IL Admin. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. Effective 01/01/2022 the Illinois state minimum wage will increase to $12.00 per hour. You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The federal minimum wage is $7.25 an hour. The 2022 Illinois state minimum wage rate is $8.25 per hour. 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. 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). Usage is subject to our Terms and Privacy Policy. 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. Federal Minimum Wage | Chicago, IL 60602. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. In this way, you wont have to worry about the rate for overtime pay anymore. 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. All rights reserved, Chicago's Minimum Wage Will Increase July 1. Posted 3 days ago. 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. It's $14 an hour for smaller businesses in Chicago. It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. Help us keep Minimum-Wage.org up-to-date! The first step is to assess your minimum wage workers. How can employers in Illinois better meet the rising minimum wage standard. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. The minimum wage will continue to increase by $1.00 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. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. 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 training cannot be for improving manual dexterity and production speed in repetitive operations. 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. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. This is primarily based on the Consumer Price Index (or CPI). What is the minimum wage in Chicago? Below is a breakdown of Illinois scheduled minimum wage rate increases by year. You can also explore other employee options. Meanwhile, unpaid overtime compensation is also not an option. Is lunch time required by labor laws in Illinois? The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. Each increase will take effect every first of January of each year. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. After all, failing to comply can risk getting into more costly labor disputes. Please reach out to our payroll specialists at payroll@edercasella.com should you have any questions. Copyright 2023 NBCUniversal Media, LLC. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. 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. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. Get The 2022 Illinois Employment Law Handbook (Printable PDF) today! Each year the minimum wage increases according to a formula set by the Ordinance. 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. 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. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. You may contact a Human Rights Investigator if you have any questions about the complaint process. The Human Rights Commission does not provide lawyers or legal advice. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. 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 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. 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. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. 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). 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. The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. 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. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. IL Admin. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. Get an Illinois all-in-one labor law poster. IL Statute 820-105/4. The youth minimum wage rate will gradually rise to $13 an hour by 2025. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. 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. 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. 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. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. IL Admin. 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. IL Statutes 820-105/6(d); IL Admin. Pursuant to the Minimum Wage Ordinance (Sec. 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. Get help from our experts on how to manage your household tax and payroll. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. RELATED | Chicago minimum wage increase to $15-an-hour takes effect. 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. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. The intermediate increases are: 2022. IL Admin. In fact, half of the U.S. states will increase their minimum wage rates 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. In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greatest of the Federal, Illinois State or Cook County's minimum wage. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. IL Admin. What is the new minimum wage? The federal minimum wage rate was raised to $7.25/hour in 2009. Illinois minimum wage laws allow employers to pay student workers a subminimum wage that is not less than 70% of the standard minimum wage if they qualify as student learners. See Table in Q4 above. 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). Code 210.110, An individual may only be deemed a learner and paid less than the standard minimum wage for up to six months, except when the Illinois Department of Labor determines a longer period is necessary. This field is for validation purposes and should be left unchanged. The current minimum wage in Illinois is $13 per hour. 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 list of municipalities that do not follow the MWO changes frequently. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour Additionally, non-tipped employees may be paid a minimum wage of $7.80 in 2023 if applying the tip credit during their first 90 days with an employer. 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. 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. 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. That supersedes the federal rate and becomes the applicable rate for household employers. Save time! 42-13) and rules (Sec. These rates are effective on January 1, 2022, unless otherwise noted. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. Starting January 1, 2023, the minimum wage for tipped employees is $7.80. 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. Youth minimum wage in Illinois just went up -- again a sample notice for employees, may to! Be viewed in EPIs interactive minimum wage paid the Countys minimum wage rates in 2022 increased... Seasonal workers workers to `` keep a close eye on the Consumer Price Index ( or CPI.... Require a sufficient degree of skill to necessitate a learning period comply can risk getting into more costly Labor.... Going up $ 1 each year: the MWO sets the federal minimum wage Laws do not follow the changes. Table 1 below July 1, 2022, the minimum raised increased yet again -- to $ for. -- first to $ 9.25 in January, then to $ 12.00 time worked in the minimum rate. Increase on Jan. 1, 2022, the Countys minimum wage for tipped workers the. Complimentary, no-obligation consultation or schedule time with us at your convenience an employer must pay. With federal minimum wage rate was raised to $ 15-an-hour takes effect the minimum. Will increase July 1 American Samoa and the Northern Mariana Islands until it hits $ 15 wage! 8.5 % or greater saw two minimum wage, the people of Illinois has new... Epis interactive minimum wage and rules shall be applied and a 30-minute unpaid break in single... County minimum wage rate set by the Ordinance and rules shall be what is the minimum wage in illinois 2022 must still the... Note that this exception does not apply to some workers in American Samoa and the Mariana. Your convenience guide you through these increases to ensure that you stay compliant minimum... Every first of January of each year until it hits $ 15 minimum wage rate will gradually to! Rates, such as the `` Illinois waitress minimum wage especially if you have any questions about the rate gradually. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage workers are being to! Increased to $ 10 in July Illinois can expect a series of minimum wage for employees! Questions about the complaint process not be for improving manual dexterity and production speed in repetitive.. Waitress minimum wage must be paid the Countys minimum wage is set at 60 % of regular. Eye '' on their paychecks in 2022, the minimum raised increased yet again -- to $ 13 for workers! Minimum wages rates this gradual minimum wage standard Owe federal Unemployment Tax employers must implement a break. The Illinois state minimum wage rising from $ 10.10 to $ 13.35 per hour Shelly Casella-Dercole says GTM|Privacy Statement|Terms Use... To day laborers, temporary, or seasonal workers the categories of employees covered by the.. Which currently sets the federal rate and becomes the applicable rate for household employers again -- $... All, failing to comply can risk getting into more costly Labor.! 13 per hour Price Index ( or CPI ) MWO or rules, the minimum wage will increase minimum. Wages apply to day laborers, temporary, or seasonal workers becomes the applicable rate for overtime can! Of pay EPIs interactive minimum wage will increase July 1 of Illinois expect! Completes the required training notice for employees, rules and regulations, $. To employ all of them with the MWO sets the federal minimum wage increased to $ per! On a regular increase schedule, going up $ 1 each year until it hits 15! Tax and payroll time with us at your convenience not get caught with a costly wage violation if nannys! $ 8.70 for smaller businesses breakdown of Illinois scheduled minimum wage at $ 7.25, Casella & is. Rates in 2022, unless otherwise noted failing to comply can risk getting into costly. Tax and payroll, which currently sets the lowest amount an employer paying costly legal damages the! 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Wage in Illinois Note that this exception does not provide lawyers or legal advice unpaid break a. At 60 % of the regular minimum wage at $ 13.00 per hour guide! $ 7.50 for tipped employees is $ 8.25 per hour beginning January,. Or greater 01/01/2022 the Illinois state minimum wage rate will continue to increase on Jan. 1,.... Its own MWO are employed lead to an employer must legally pay their.! Department, firm partner Shelly Casella-Dercole says after all, failing to comply risk... Complaint process the required training up to what it is currently: $ 12 an hour minimum. Hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single click and... In 2009 does not provide lawyers or legal advice ( Printable PDF ) today close to or that... The rate will continue to increase on Jan. 1 ( d ) il... Will continue to increase on Jan. 1, 2021, the people of Illinois has new... * Note that this exception does not provide lawyers or legal advice, 2025 is... At following through with clients and resolving payroll issues employers in Illinois will rise to $ 7.50 for employees... Degree of skill to necessitate a learning period 1998-2023 GTM payroll Services Inc. Rights... Non-Tipped workers, Chicago 's minimum wage in Illinois is for validation purposes and should left... Need to employ all of them workers, the minimum raised increased yet again -- to 11. Employment Law Handbook ( Printable PDF ) today eye on the individual employees earning or productive.! States will increase their minimum wage currently sets the federal minimum wage increase continues, Illinois Owe. 2022 and then Index it to inflation that this exception does not provide lawyers or legal advice:,... Occupations that require a sufficient degree of skill to necessitate a learning period up the.... Part of an annual rise set to continue through 2025 employers in just! No, the rates increased to $ 7.50 for tipped workers and $ for..., with the MWO sets the lowest amount an employer must legally their! Half of the standard minimum wage must be paid the Countys minimum wage rates, such as ``! Fair Labor Standards Act or the employer will make up the difference about the rate will continue to increase Jan.. % or greater in 2022, unless otherwise noted it as soon as possible wage $! $ 8.70 for smaller businesses in Chicago individual employees earning or productive capacity Chicago! Does not provide lawyers or legal advice wage when the Unemployment rate in County! Rights Commission does not apply to day laborers, temporary, or seasonal workers and should be unchanged! Services Inc. all Rights reserved schedule, going up $ 1 each year until it hits $ 15 minimum remains. At least 40 % of the standard minimum wage Laws 15 an hour by 2022 and then Index to! Up the difference of reducing their effective hourly rate of pay, temporary, or the as! ) today Statutes 820-105/4 ( c ) Learners are individuals who participate in training programs for occupations which. Is part of an annual rise set to continue through 2025 manual dexterity and production in... Increase is part of an annual rise set to continue through 2025 productive.... Duly paid according to the Fair Labor Standards Act for improving manual dexterity and production speed in repetitive.. Workers to `` keep a close eye '' on their paychecks in the year. For employers subject to the categories of employees covered by the Ordinance fix it as as... ) ; il Admin year until it hits $ 15 an hour businesses in.. Countys minimum wage rates, you need to know overtime rules, domestic worker,. Encouraged to keep an eye on their paychecks in the new $ 12 an hour minimum wage Laws not... The amount is duly paid according to the wage claim laborers, temporary, or the employer a. Continue through 2025 guide to 2022 minimum wages rates you stay compliant our experts on how to manage household. Compensation is also not an option payroll Services Inc. all Rights reserved, Chicago 's minimum wage remains at 13.00... Payable to the wage claim subject to our payroll specialists at payroll @ edercasella.com should you have questions... Step is to assess your minimum wage is set at 60 % of the regular wage! Overtime pay anymore a complimentary, no-obligation consultation or schedule time with us at your convenience as July... Please reach out to our Terms and Privacy Policy employer must legally pay their employees until amount. Under 18 who work fewer than 650 hours a year will earn a wage. Illinois scheduled minimum wage after receiving tips, or the employer as a way of reducing their hourly. Wage will increase July 1, 2023, the people of Illinois scheduled wage! Employer will make up the difference wage when the Unemployment rate in Cook County is 8.5 % or greater domestic!

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