IL Admin. 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). Why? The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. 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. 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. Illinois current minimum wage is $13.00. Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. Illinois minimum wage law does not address tip pooling or sharing. Save time! Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. 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 Cicchini said Monday. 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. 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. IL Admin. IL Admin. Suite 1130, 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. 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 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). Usage is subject to our Terms and Privacy Policy. The minimum wage increase is part of an annual rise set to continue through 2025. 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 of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped 42-13) and rules (Sec. IL Statutes 820-105/6(d); IL Admin. 69 W. Washington Street, Maryland Maryland was another state that passed a 2019 law to move toward a $15 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. She makes sure everyone gets paid. Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site There are exceptions to the categories of employees covered by the Ordinance. 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 state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. Employers must implement a 20-minute break for each 7.5-hour shift. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The current minimum wage in Illinois is $13 per hour. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. That's a $1 increase scheduled for Jan. 1. Let us know in a single click, and we'll fix it as soon as possible. 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 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. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Code 210.610; IL Admin. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. 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 youth minimum wage rate will gradually rise to $13 an. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. ABC7 Chicago says farewell Meteorologist Phil Schwarz, High school teacher arrested for allegedly hiding cameras in bathroom, At least 29 dead, 85 injured after trains collide in Greece: officials. WebThe projected federal minimum wage in 2023. Tipped employees may be paid 60% of the hourly minimum wage. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. 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. All Rights Reserved. Code 210.110; IL Admin. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. 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). There have been three increases in the minimum wage since Pritzker signed that legislation. These workers must be paid the Countys minimum wage during the entire duration of employment. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. 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. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. The first step is to assess your minimum wage workers. Want to learn more? Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar See Table in Q4 above. The increase comes after Gov. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. The time required may also change according to the common practice in an industry and the length of ones shift. Paying employees less than the applicable minimum wage. 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. 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. 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. In 2019, Illinois Gov. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. This increase will result in a state minimum wage of $15.00 by January 1, 2025. 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. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. IL Statutes 820-105/6(d); IL Admin. The new wage will be $12 an hour. The intermediate increases are: 2022. 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. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. If this gradual minimum wage increase continues, Illinois will become the first state to enjoy a $15 minimum wage rate. Need help understanding how to pay your nanny the right way? That supersedes the federal rate and becomes the applicable rate for household employers. 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. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. 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? What to Know About the Cook County Commissioner After Advancing to the Runoff Election. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. The youth minimum wage rate will gradually rise to $13 an hour by 2025. 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. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. 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. The rate will continue to increase on Jan. 1 each year until it hits $15 per rate that applies to employees of all companies who work within Cook County. The minimum wage equals about $480.00 per 40-hour week and about $24,960.00 per year. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. What is the new minimum wage? And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. Complaint forms and additional information can be found online. Please check with the local city, township, or village to confirm whether your municipality has adopted the MWO. IL Admin. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. IL Statutes 820-105/4(c). IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. 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. You can also explore other employee options. Code 210.640. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour 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). 42-13) and rules (Sec. 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 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. In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. In this way, you wont have to worry about the rate for overtime pay anymore. 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. Compensation can lead to an employer paying costly legal damages until the amount is paid. Keep a close eye '' on their paychecks in 2022 the Cook Commissioner! Current Illinois Labor Laws for instance, those working for employers subject the! 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