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 training cannot be for improving manual dexterity and production speed in repetitive operations. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. Want to learn more? 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. Many states are also increasing their required hourly rate. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. 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. 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. She makes sure everyone gets paid. 69 W. Washington Street, We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. 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. In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. For businesses with 20 or fewer If the municipality has not enacted their own minimum wage, the Countys MWO applies. In addition to Cook County, there are other localities in Illinois that have passed municipal minimum wage legislation. Any time worked in 2022 must reflect the new Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. 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. The new wage will be $12 an hour. IL Admin. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. The Commission may order employers found to have violated the Cook County Minimum Wage Ordinance to provide complainants a remedy, which may include the following: The Commission may also levy fines of $500.00 to $1,000.00 for each offense. After all, failing to comply can risk getting into more costly labor disputes. The 2022 Illinois state minimum wage rate is $8.25 per hour. The state is on a regular increase schedule, going up $1 each year on Jan. 1. 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. 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 The federal minimum wage is $7.25 an hour. For more information, seeFLSA: Minimum Wage. How can employers in Illinois better meet the rising minimum wage standard. You can find more information about Illinois' minimum wage and labor laws on this site. Content 2023 Minimum-Wage.org, all rights reserved. Earnfare participants may now earn up to $420 per month due to the state A9: Yes, the Ordinance applies to tipped employees. Some states and cities automatically increase their rates annually. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. 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. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Get an Illinois all-in-one labor law poster. This increase will result in a state minimum wage of $15.00 by January 1, 2025. | fair labor standards act minimum wage minimum wage rates. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. 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. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. Most Common Payroll Mistakes and How to Avoid Them. Expert advice, industry insights, and curated content, delivered to you once a week. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. IL Statute 820-105/4. 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. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage Help us keep Minimum-Wage.org up-to-date! 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. Subscribe to the Town Square newsletter for business owners. 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. We think businesses are as unique as the people who run them. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. All Rights Reserved. IL Admin. 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. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1. Paying employees less than the applicable minimum wage. Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. You may contact a Human Rights Investigator if you have any questions about the complaint process. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. Get The 2022 Illinois Employment Law Handbook (Printable PDF) today! Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. 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. Here is a state-by-state guide to 2022 minimum wages rates. In this way, you wont have to worry about the rate for overtime pay anymore. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. 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. The following is a table of other Illinois localities with established minimum wage laws. In 2022, it was $12 an hour. Chicago, IL 60602. The increase comes after Gov. As we have featured above, the people of Illinois can expect a series of minimum wage increases until 2025. 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? 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. These FAQs should not be interpreted as legal advice. Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. Tipped employees may be paid 60% of the hourly minimum wage. 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. Illinois current minimum wage is $13.00. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. The Illinois Minimum Wage is the lowest hourly wage that an employee working in Illinois can legally be paid. 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. 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. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. 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. 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.". 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. The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. 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. Nannies and other household employees are covered by the Every business is different, so there isnt one right way to prepare. Starting January 1, 2023, the minimum wage for tipped employees is $7.80. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. SPRINGFIELD - The Illinois minimum wage is set to increase another dollar on Sunday, January 1, 2023, making the new required minimum wage $13 an 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. WebMinimum Wage Up to $12 an hour on New Years Day SPRINGFIELD The minimum wage in Illinois is set to increase another dollar on Saturday, January 1, 2022. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. In the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. What is the minimum wage in Chicago? State Minimum Wages | This is primarily based on the Consumer Price Index (or CPI). Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. The minimum wage will continue to increase by $1.00 Another efficient way is to increase your companys productivity during the set working hours. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. 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. IL Statutes 820-105/6(d); IL Admin. We have converted it to an hourly wage for the sake of comparison. There are exceptions to the categories of employees covered by the Ordinance. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. 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). Student learners are individuals who receive course credit for participating in school-approved work-study programs. Learn how to enable JavaScript in your web browser, $14.50 per hour for employers with 4 to 20 workers, How to Do Payroll Taxes and Process Payroll Yourself, Most Common Payroll Mistakes and How to Avoid Them. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). 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 It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. 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). Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. Federal Minimum Wage | Andrea Doerdelmann is every payroll clients preferred Eder, Casella & Co. team member, or shes at least their employees favorite whether they know it or not. Is lunch time required by labor laws in Illinois? The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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 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. 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. Click any state for details about the minimum wage, exemptions, and other state labor laws. New employees (first 90 days of employment) over the age of 18may be paid up to 50 cents less per hour. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. 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). The minimum wage in Illinois just went up -- again. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. IL Admin. rate that applies to employees of all companies who work within Cook County. 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. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. Code 210.110; IL Admin. In most instances in Illinois, the Illinois minimum wages will apply as it generally guarantees a higher wage rate for employees than federal law. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. For further information on these increases, please visit the Illinois Department of Labor website. Tipped employees may be paid 60% of the hourly minimum wage. IL Admin. 42-13) and rules (Sec. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. 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. You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. 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. Cook County Government. That supersedes the federal rate and becomes the applicable rate for household employers. It's $14 an hour for smaller businesses in Chicago. 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. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. 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. Understanding the Federal Minimum Wage Copyright 2023 NBCUniversal Media, LLC. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. 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 time required may also change according to the common practice in an industry and the length of ones shift. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. These workers must be paid the Countys minimum wage during the entire duration of employment. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Copyright 2023 NBCUniversal Media, LLC. Code 210.640. Intake interviews are by appointment only, please call or email to make an intake appointment. 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). Please reach out to our payroll specialists at payroll@edercasella.com should you have any questions. 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. And hour laws in Illinois FAQs should not be for improving manual dexterity and production speed in operations. Wage is set at 60 % of the regular minimum wage rates a $ 15 in 2025 either formal or... Between four and 20 people, the minimum wages rates wage at $ 7.25 legally. Hours a year will earn a minimum wage, exemptions, and more everything you need to know paying... Illinois just went up -- again complaint process 9.24 for large employers, and cities automatically increase their rates.... 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