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. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. For businesses with 20 or fewer The minimum wage in Illinois just went up -- again. Why? As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. 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. J.B. Pritzker said in a statement. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. Not providing adequate paid breaks can also be counted as unpaid wages. 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. Expert advice, industry insights, and curated content, delivered to you once a week. Maryland Maryland was another state that passed a 2019 law to move toward a $15 Chicago, IL 60602. Every business is different, so there isnt one right way to prepare. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. 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. A9: Yes, the Ordinance applies to tipped employees. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". 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. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Each year the minimum wage increases according to a formula set by the Ordinance. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. 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. Illinois workers deserve a minimum wage that keeps up with the rising costs of living, Gov. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage Each increase will take effect every first of January of each year. Readers should contact legal counsel for legal advice. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. 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. 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. All rights reserved, Chicago's Minimum Wage Will Increase July 1. Student learners are individuals who receive course credit for participating in school-approved work-study programs. 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. The new wage will be $12 an hour. Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site Here's What to Know, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Paul Vallas vs. Brandon Johnson: A First Look at the April Chicago Mayoral Runoff, Who is Brandon Johnson? 42-13) and rules (Sec. All Rights Reserved. As of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped 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? Save time! Get an Illinois all-in-one labor law poster. 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. 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). 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. Any time worked in 2022 must reflect the new Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. 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. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an 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 intermediate increases are: 2022. This field is for validation purposes and should be left unchanged. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). 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. 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. 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. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. Cook County Government. Complaint forms and additional information can be found online. Another efficient way is to increase your companys productivity during the set working hours. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster 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. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. 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 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. The poverty rate reflects a person's gross annual income. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. Some regions in Illinois have higher minimum wages than the state average. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar The youth minimum wage rate will gradually rise to $13 an hour by 2025. 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. 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. 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. Is lunch time required by labor laws in Illinois? 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. That supersedes the federal rate and becomes the applicable rate for household employers. She is great at following through with clients and resolving payroll issues. Subscribe to the Town Square newsletter for business owners. Please note that individuals may obtain legal advice and assistance filing complaints with the Commission from nonprofit organizations that handle housing issues in Cook County. You can also explore other employee options. Tipped employees may be paid 60% of the hourly minimum wage. Is the minimum wage rate in Illinois increasing in 2022? As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. Posted 3 days ago. 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? The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. Is any of our data outdated or broken? 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. Learn how to enable JavaScript in your web browser. 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). | fair labor standards act minimum wage minimum wage rates. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. 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. 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