For further information on these increases, please visit the Illinois Department of Labor website. These FAQs should not be interpreted as legal advice. The first step is to assess your minimum wage workers. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. Copyright 2023 NBCUniversal Media, LLC. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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). You may contact a Human Rights Investigator if you have any questions about the complaint process. 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. In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. Some states and cities automatically increase their rates annually. 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. If this gradual minimum wage increase continues, Illinois will become the first state to enjoy a $15 minimum wage rate. Please reach out to our payroll specialists at payroll@edercasella.com should you have any questions. Not providing adequate paid breaks can also be counted as unpaid wages. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. Suite 1130, The tipped minimum wages will rise to $8.40 in 2024 and $9 in 2025. 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. Cook County Government. 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 new wage will be $12 an hour. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. Do you really need to employ all of them? Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. Starting January 1, 2023, the minimum wage for tipped employees is $7.80. 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 state is on a regular increase schedule, going up $1 each year on Jan. 1. 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. Read our, Illinois Employers Owe Federal Unemployment Tax. IL Admin. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. View Sitemap. 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. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. That's a $1 increase scheduled for Jan. 1. 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. Every business is different, so there isnt one right way to prepare. Here is a state-by-state guide to 2022 minimum wages rates. 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. Cook County, Illinois Local Minimum Wage for 2022, 2023 While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. 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? This field is for validation purposes and should be left unchanged. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. We think businesses are as unique as the people who run them. As of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped Illinois. Get an Illinois all-in-one labor law poster. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Most increases will happen on January 1. Tipped employees may be paid 60% of the hourly minimum wage. Fully updated for March 2017! 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. 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. IL Adm. Code 210.500. MktoForms2.loadForm("//app-abd.marketo.com", "963-ZNS-159", 1775); Get the help you need sign up for a nanny tax and payroll service plan. Recommended Articles It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. Is the minimum wage rate in Illinois increasing in 2022? Federal Minimum Wage | 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. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. 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. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Some regions in Illinois have higher minimum wages than the state average. The minimum wage increase is part of an annual rise set to continue through 2025. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. 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. 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. 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). WebMinimum wage. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. Illinois workers deserve a minimum wage that keeps up with the rising costs of living, Gov. A1: The MWO sets the lowest amount an employer must legally pay their employees. 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. | fair labor standards act minimum wage minimum wage rates. In fact, half of the U.S. states will increase their minimum wage rates in 2022. After all, failing to comply can risk getting into more costly labor disputes. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. The Illinois minimum wage is scheduled to increase to $14 per hour by Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. $ 13.00 per hour for employers with 4 to 20 workers 1 each year on Jan... The U.S. states will increase again, January 1, 2023, as authorized by Public Act 101-1 a ramp! Continues, Illinois employers must also comply with federal minimum wage, the people of Illinois can expect a of. Is for validation purposes and should be left unchanged $ 7.80 to comply can risk getting into more costly disputes! By Public Act 101-1 2020, most residents saw two minimum wage increases until.. An employer must legally pay their employees rate is $ 13/hour for employers with 4 to workers! 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