The current Illinois minimum wage of $12.00 per hour is the lowest amount a non-exempt employee in Illinois can legally be paid for hourly work. Special minimum wage rates, such as the "Illinois waitress minimum wage" for tipped employees, may apply to certain workers. 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. The wage is much higher than the federal minimum wage of $7.25 per hour. Get The 2022 Illinois Employment Law Handbook (Printable PDF) today! You can find more information about Illinois' minimum wage and labor laws on this site. Starting January 1, 2023, the minimum wage for tipped employees is $7.80. The following is a table of other Illinois localities with established minimum wage laws. On January 1, the Illinois minimum wage increased to $12 an hour. 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? Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. 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. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. Confiscating gratuities of tipped employees. 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. Currently, the Illinois minimum wage is higher than the federal one. Please reach out to our payroll specialists at payroll@edercasella.com should you have any questions. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. 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. Employers carry the burden of establishing tipped employees received enough tips to ensure the employee was paid the standard minimum wage. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. Suppose an employer chooses to pay employees minimum wage. The increases range from a $0.22 inflation adjustment in Michigan to a $1.50 per hour raise in Virginia, the equivalent of an annual increase ranging from $458 to $3,120 for a full-time, full-year minimum wage worker. 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). Why? Any time worked in 2022 must reflect the new Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. IL Adm. Code 210.500. IL Admin. IL Statute 820-105/4. 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. 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). The minimum wage will continue to be subject to This site is a free public service not affiliated with the Department of Labor or any governmental organization. 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. 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. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. Beginning, January 1, 2020, Posted 3 days ago. A1: The MWO sets the lowest amount an employer must legally pay their employees. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. A6: No, the City of Chicago has its own MWO. The department said employees with problems regarding the minimum wage can file a complaint with IDOL at the following https://www2.illinois.gov/idol/Pages/Complaints.aspx or call 312-793-2800. The state is on a regular increase schedule, going up $1 each year on Jan. 1. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. The weekly Household Employer Digest delivered to your inbox. 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. A7: No, if a municipality has passed their own minimum wage (like the City of Chicago) then the municipality's minimum wage applies to employers located within or doing business in the municipality. Pursuant to the Minimum Wage Ordinance (Sec. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. 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. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. She is great at following through with clients and resolving payroll issues. Most increases will happen on January 1. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar Maryland Maryland was another state that passed a 2019 law to move toward a $15 Earnfare participants may now earn up to $420 per month due to the state 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). As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). IL Statutes 820-105/6(d); IL Admin. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. In that case, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage. In this way, you wont have to worry about the rate for overtime pay anymore. The rate will continue to increase on Jan. 1 each year until it hits $15 per 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. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. Our investigators conduct neutral fact-finding investigations, which includes gathering information and conducting interviews to determine if a violation of the MWO has occurred. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. 42-13) and rules (Sec. It's $14 an hour for smaller businesses in Chicago. 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. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. 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 $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 210.110; IL Admin. All Rights Reserved. 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. 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. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. Understanding the Federal Minimum Wage What is the new minimum wage? 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. The youth minimum wage rate will gradually rise to $13 an. After all, failing to comply can risk getting into more costly labor disputes. WebThe table below lists the current prevailing 2023 minimum wage rates for every state in the United States. Contact. See Table in Q4 above. Illinois current minimum wage is $13.00. 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. In 2022, it was $12 an hour. As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. Cook County Government. Tipped employees may be paid 60% of the hourly minimum wage. In effect, these states have a minimum wage at the federal rate of $7.25/hr: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, and Wyoming. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. Illinois minimum wage for tipped employees is $7.80. Is the minimum wage rate in Illinois increasing in 2022? 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. 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. Content 2023 Minimum-Wage.org, all rights reserved. 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. You may contact a Human Rights Investigator if you have any questions about the complaint process. This isnt the traditional practice. Get an Illinois all-in-one labor law poster. The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. Meanwhile, unpaid overtime compensation is also not an option. Minimum wage workers in IL earn a total of $330.00 per week, or $17,160.00 per year. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. The first step is to assess your minimum wage workers. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. Each increase will take effect every first of January of each year. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. Some states and cities automatically increase their rates annually. 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? While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage 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 January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. You can find a list of highest and lowest minimum wage rates here . The training cannot be for improving manual dexterity and production speed in repetitive operations. Student learners are individuals who receive course credit for participating in school-approved work-study programs. Is lunch time required by labor laws in Illinois? 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. For businesses with 20 or fewer Want to learn more? 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