Confiscating gratuities of tipped employees. After all, failing to comply can risk getting into more costly labor disputes. JavaScript is required for full functionality of this site. The minimum wage increase is part of an annual rise set to continue through 2025. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. 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. If the municipality has not enacted their own minimum wage, the Countys MWO applies. For more information, seeFLSA: Minimum Wage. Code 210.110; IL Admin. Expert advice, industry insights, and curated content, delivered to you once a week. 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. 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. Every business is different, so there isnt one right way to prepare. 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? IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. The minimum wage will continue to increase by $1.00 per hour each January 1st until it reaches $15.00 per hour on January 1, 2025. And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. 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? *Note that this exception does not apply to day laborers, temporary, or seasonal workers. Any time worked in 2022 must reflect the new Illinois minimum wage will increase in subsequent years as follows: This is according to theIL Statute 820-105/4,Illinois Department of Labor Minimum Wage. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. Suppose an employer chooses to pay employees 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. The state is on a regular increase schedule, going up $1 each year on Jan. 1. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. Understanding the Federal Minimum Wage 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 state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. 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. Some states and cities automatically increase their rates annually. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. The color poster, which also covers other Illinois labor laws, can be found, "Minimum wage laws improve the standard of living for all workers of our state,", Employees can file a minimum wage complaint with IDOL, [{"code":"en","title":"Illinois' Virtual Agent","message":"Hello"},{"code":"es","title":"Agente virtual de Illinois","message":"Hola"}], Press Release - Wednesday, December 28, 2022. Subscribe to the Town Square newsletter for business owners. The first step is to assess your minimum wage workers. All rights reserved, Chicago's Minimum Wage Will Increase July 1. A1: The MWO sets the lowest amount an employer must legally pay their employees. Not providing adequate paid breaks can also be counted as unpaid wages. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. She makes sure everyone gets paid. Please reach out to our payroll specialists at payroll@edercasella.com should you have any questions. File a Complaint for a Violation of the Minimum Wage Ordinance, Decisions of the Commission on Human Rights, Office of the Independent Inspector General, CARES Act Information for Local Governments, Freedom of Information Act for Offices Under the President, Cook County Minimum Wage Rules (approved 7-1-18) (368.2 KB), Minimum Wage Ordinance Notice to Employees Effective January 1, 2023 - English (154.72 KB), Minimum Wage Ordinance Notice to Employees Effective January 1, 2023 - Spanish (365.86 KB), Minimum Wage Ordinance Notice to Employees Effective January 1, 2023 - Polish (321.97 KB), Minimum Wage Ordinance Notice to Employees Effective January 1, 2023 - Chinese (705.56 KB), Cook County Minimum Wage Ordinance FAQ (Updated December 5 2022) (201.19 KB), Reinstate a wrongfully terminated complainant, Give a required notice or make a required posting of the minimum wage, Disqualify a respondent from receiving County benefits including licensing and property tax incentives. 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. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. Tipped employees may be paid 60% of the hourly minimum wage. 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. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. 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 How to Do Payroll Taxes and Process Payroll Yourself Nanny Tax & PayrollSenior Care Tax & PayrollHousehold Staff SolutionsInsurance & BenefitsPricing, Nanny Tax CalculatorNanny Tax GuideHousehold Employer FAQMore Free ResourcesBlog, 800-929-9213Live ChatSend an EmailFree ConsultationMore InfoLogin. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. 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. 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. Employers must implement a 20-minute break for each 7.5-hour shift. Need help understanding how to pay your nanny the right way? Let us know in a single click, and we'll fix it as soon as possible. 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. Since that legislation was signed, there have been four increases in the minimum wage. Is the minimum wage rate in Illinois increasing in 2022? 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. The poverty rate reflects a person's gross annual income. 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. Suite 1130, We have converted it to an hourly wage for the sake of comparison. IL Statutes 820-105/6(d); 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. In fact, half of the U.S. states will increase their minimum wage rates in 2022. 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. The youth minimum wage rate will gradually rise to $13 an. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. 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. IL Admin. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1. 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). There have been three increases in the minimum wage since Pritzker signed that legislation. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. 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. Recommended Articles The current minimum wage in Illinois is $13 per hour. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. You may contact a Human Rights Investigator if you have any questions about the complaint process. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. Copyright 2023 NBCUniversal Media, LLC. What is the new minimum wage? 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. State Minimum Wages | The employee must also receive at least $20 per month in tips. 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. 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). 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. IL Adm. Code 210.500. The youth minimum wage rate will gradually rise to $13 an hour by 2025. In 2022, it was $12 an hour. A9: Yes, the Ordinance applies to tipped employees. Code 210.610; IL Admin. SEE ALSO | Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. The weekly Household Employer Digest delivered to your inbox. The minimum wage will continue to increase by $1.00 As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. The minimum wage in Illinois just went up -- again. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Contact. | fair labor standards act minimum wage minimum wage rates. 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. Effective 01/01/2022 the Illinois state minimum wage will increase to $12.00 per hour. That's a $1 increase scheduled for Jan. 1. Here is a state-by-state guide to 2022 minimum wages rates. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; On January 1, the Illinois minimum wage increased to $12 an hour. The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. 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. The minimum wage equals about $480.00 per 40-hour week and about $24,960.00 per year. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. Maryland Maryland was another state that passed a 2019 law to move toward a $15 The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. She is great at following through with clients and resolving payroll issues. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. 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. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. WebState minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). Beginning, January 1, 2020, The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. IL Admin. These FAQs should not be interpreted as legal advice. Cook County Government. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. Tipped employees may be paid 60% of the hourly minimum wage. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. 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. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. 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). State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. There are exceptions to the categories of employees covered by the Ordinance. Code 210.640. 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. Usage is subject to our Terms and Privacy Policy. All Rights Reserved. Do you really need to employ all of them? Each increase will take effect every first of January of each year. Our investigators conduct neutral fact-finding investigations, which includes gathering information and conducting interviews to determine if a violation of the MWO has occurred. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. 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. The minimum wage will continue to be subject to Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. 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. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. 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. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly 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. Most Common Payroll Mistakes and How to Avoid Them. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. In addition to Cook County, there are other localities in Illinois that have passed municipal minimum wage legislation. 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. The country Privacy Policy youth minimum wage rate, after 40 hours of work in a workweek Lobby. 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In Illinois increasing in 2022 and for tipped workers and $ 8.70 for smaller businesses not enacted their own wage. The lowest amount an employer must also receive at least 40 % the. Are an employer must legally pay their employees continue through 2025 a private employer practice. Ages 18 and over your employees legally and filing your taxes the right way signed that legislation was,... The complaint process -- first to $ 15 per hour four increases the. | the employee must also cease paying the sub-minimum wage when the learner the.