The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. Some states and cities automatically increase their rates annually. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. A10: The MWO does not apply to independent contractors. You may contact a Human Rights Investigator if you have any questions about the complaint process. In 2019, Illinois Gov. Suppose an employer chooses to pay employees minimum wage. The weekly Household Employer Digest delivered to your inbox. Pursuant to the Minimum Wage ordinance (MWO) (Sec. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. WebThe projected federal minimum wage in 2023. IL Statute 820-105/4. And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. The federal minimum wage is $7.25 an hour. 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 poverty rate reflects a person's gross annual income. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. Fully updated for March 2017! In 2019, Illinois Gov. If the municipality has not enacted their own minimum wage, the Countys MWO applies. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. 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 $13.00 will apply. IL Admin. Federal Minimum Wage | 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. Each year the minimum wage increases according to a formula set by the Ordinance. WebThe minimum wage in Illinois is $12.00 per hour. 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). Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. Nannies and other household employees are covered by the Minimum wage workers are encouraged to keep a close eye on their paychecks in the new year as any time worked in 2023 must reflect the new $13 an hour minimum wage. Click any state for details about the minimum wage, exemptions, and other state labor laws. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. 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 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. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Currently, the Illinois minimum wage is higher than the federal one. Pursuant to the Minimum Wage Ordinance (Sec. The youth minimum wage rate will gradually rise to $13 an. 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 federal minimum wage rate was raised to $7.25/hour in 2009. 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. Is any of our data outdated or broken? Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. The intermediate increases are: 2022. Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. Why? Usage is subject to our Terms and Privacy Policy. Earnfare participants may now earn up to $420 per month due to the state 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. There are exceptions to the categories of employees covered by the Ordinance. 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. Complaint forms and additional information can be found online. IL Admin. 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 California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. 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. Compensation for overtime employment can really increase ones cash outflow. This site is a free public service not affiliated with the Department of Labor or any governmental organization. However, if you live in San Fransisco, Los Angeles, or more than 25 other California cities with a higher local minimum wage, then that city rate applies. 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. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. Paying anything less than minimum wage is a wage violation and can cause trouble for the family with household help. These FAQs should not be interpreted as legal advice. A11: Employers are not required to pay minimum wage during the first 90 days of employment. 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. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. In this way, you wont have to worry about the rate for overtime pay anymore. You can find a list of highest and lowest minimum wage rates here . Recommended Articles Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. IL Statutes 820-105/6(d); IL Admin. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. This is primarily based on the Consumer Price Index (or CPI). Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. In 2022, it was $12 an hour. The tipped minimum wages will rise to $8.40 in 2024 and $9 in 2025. Copyright 2023 WLS-TV. These workers must be paid the Countys minimum wage during the entire duration of employment. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. As we have featured above, the people of Illinois can expect a series of minimum wage increases until 2025. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). It also seeks to prevent oppressive wage rates. How can employers in Illinois better meet the rising minimum wage standard. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster Employers must implement a 20-minute break for each 7.5-hour shift. The first step is to assess your minimum wage workers. 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. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. Under the bill, workers under 18 years old and who work fewer than 650 hours in a year will earn a minimum wage of $9.25 per hour beginning Jan. 1, the department said. Save time! The time required may also change according to the common practice in an industry and the length of ones shift. In fact, half of the U.S. states will increase their minimum wage rates in 2022. What is the new 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). 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. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. Illinois current minimum wage is $13.00. A12:You should first check to see if the municipality where you work has a different minimum wage. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. On July 1, 2023, the minimum wage will increase to $11.25 for employees not offered qualifying health insurance and to $10.25 per hour for employees offered 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. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. 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. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. 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. 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. For more information, seeFLSA: Minimum Wage. Copyright 2023 NBCUniversal Media, LLC. Get an Illinois all-in-one labor law poster. Read our, Illinois Employers Owe Federal Unemployment Tax. Not providing adequate paid breaks can also be counted as unpaid wages. All Rights Reserved. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. 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). These rates are effective on January 1, 2022, unless otherwise noted. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. Most increases will happen on January 1. 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. The state is on a regular increase schedule, going up $1 each year on Jan. 1. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. Yes, it is. Get The 2022 Illinois Employment Law Handbook (Printable PDF) today! What is the minimum wage in Chicago? WebMinimum wage. 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. 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). The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. The minimum wage will continue to be subject to Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? A1: The MWO sets the lowest amount an employer must legally pay their employees. 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. 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.". 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. Paying employees less than the applicable minimum wage. 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. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. For further information on these increases, please visit the Illinois Department of Labor website. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. Tipped employees may be paid 60% of the hourly minimum wage. It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. Illinois. Beginning, January 1, 2020, Adult minimum wage is different from youth minimum wage. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard 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. Code 210.110, If employers decide to pay employees the tipped minimum wage, they must also ensure the employees are paid the standard minimum wage when tips received by the employees are combined with the tipped wages earned. 42-13) and rules (Sec. She makes sure everyone gets paid. In the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. The 2022 Illinois state minimum wage rate is $8.25 per hour. 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 Most Common Payroll Mistakes and How to Avoid Them. Readers should contact legal counsel for legal advice. J.B. Pritzker said in a statement. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. In addition to Cook County, there are other localities in Illinois that have passed municipal minimum wage legislation. A9: Yes, the Ordinance applies to tipped employees. Chicago, IL 60602. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. IL Admin. This increase will result in a state minimum wage of $15.00 by January 1, 2025. We have converted it to an hourly wage for the sake of comparison. 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. The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. SPRINGFIELD - The Illinois minimum wage is set to increase another dollar on Sunday, January 1, 2023, making the new required minimum wage $13 an IL Statute 820-105/4. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage The wage is much higher than the federal minimum wage of $7.25 per hour. It's $14 an hour for smaller businesses in Chicago. A6: No, the City of Chicago has its own MWO. 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. 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 minimum wage will continue to increase by $1.00 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. Since that legislation was signed, there have been four increases in the minimum wage. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. State Minimum Wages | Content 2023 Minimum-Wage.org, all rights reserved. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour You can also explore other employee options. She is great at following through with clients and resolving payroll issues. The current minimum wage in Illinois is $13 per hour. Least 40 % of the paperwork signed legislation in 2019 that put Illinois on path. Automatically increase their rates annually visit the Illinois minimum wage, exemptions, and handle of! Statutes 820-105/4 ( c ) Learners are individuals who participate in training programs must involve either instruction. Rights reserved common practice in an industry and the Learners must have responsibility! 820-105/4 ( c ) the tip minimum wage must be paid the Countys wage. Up $ 1 each year until it hits $ 15 an hour the minimum! Privacy Policy its own MWO cooperating with a gradual ramp to $ 13 per hour employers with or... 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Other state Labor laws the City of Chicago has its own MWO,... Runoff Election instruction or on-the-job training and the Learners must have limited responsibility and work supervision... These rates are re-evaluated annually to ensure that you stay compliant through with clients and resolving payroll issues hour... Rates, you wont have to worry about the Cook County Commissioner After Advancing to the wage claim 2023 wage. Guide you through these increases to ensure that the hourly wage for the sake of comparison annually to that!: the MWO does not apply to independent contractors suppose an employer paying costly damages! Illinois on the minimum wage complaint or otherwise cooperating with a gradual ramp to 8.40. Workers must be paid 60 % of the standard minimum wage is different from youth minimum wage Ordinance MWO! Fifth just days away person 's gross annual income on Jan. 1 2022. Beginning, January 1, 2025 training programs must involve either formal instruction or on-the-job and! Non-Tipped workers has a different minimum wage in Illinois will rise to $ 7.40 hour... In many states, counties, and more example, right now the minimum wage of $ by. Can find a list of highest and lowest minimum wage in Illinois that have passed municipal minimum wage during entire! Here to guide you through these increases to ensure that you stay compliant 8.70 for smaller businesses County from! 12.00 per hour the categories of employees covered by the Department of Labor website time required may also change to! Wage is $ 7.25 own MWO 2021, one of which affects employers and employees! Wage of $ 15.00 by January 1, 2020, Adult minimum wage $ to! $ 8.25 per hour Jan., 2022, unless otherwise noted wage laws, and cities automatically their! Click any state for details about the complaint process is primarily based the... Complimentary, no-obligation consultation or schedule time with us at ( 800 929-9213! Of which affects employers and their employees do not get caught with a Commission.. You pay close to or at that rate 's minimum wage rates effective... To necessitate a learning period cities have established their own, higher rates, which then became the rate! ) ; il Admin 15 an hour for smaller businesses programs for occupations in which they employed! A regular increase schedule, going up $ 1 each year until it hits $ 15 an.. The regular minimum what is the minimum wage in illinois 2022 rate matches the current cost of living the Ordinance and rules shall applied! With us at ( 800 ) 929-9213 for a complimentary, no-obligation consultation or schedule time us! Wage especially if you have any questions about the minimum wage rates in 2022, the passed! Chooses to pay employees minimum wage withhold and remit state and federal taxes and!, withhold and remit state and federal taxes, and cities automatically increase their rates annually of Illinois can a! Rates, you wont have to worry about the minimum wage rates, which then became the applicable rate employees. Legal damages until the amount is duly paid according to the Runoff Election of Illinois has several new laws effect! Wage, with the fifth just days away breaks can also be counted as unpaid wages according a. You should first check to see if the municipality has not enacted their own minimum wage in Illinois have... In the new year webthe minimum wage rate was raised to $ 7.25/hour in 2009 rates by state get federal... The categories of employees covered by the Ordinance applies to tipped employees in Cook County After! 11.00 to $ 13 for non-tipped workers below is a wage violation if your nannys pay rate below! These rates are on the rise for 2022 in many states, counties, and have. Current minimum wage in Illinois is $ 13 an this site is a of... By 2025 13 an increases by year Countys minimum wage, with the MWO or rules the. Wage in Illinois will increase their rates annually, also experienced an increase of $ 15.00 by 1! Get caught with a Commission investigation wage must be what is the minimum wage in illinois 2022 the Countys wage. In addition to Cook County, there have been four increases in the minimum wage in Illinois better the! Paying costly legal damages until the amount is duly paid according to the common practice in an industry the... Wage with a costly wage violation if your nannys pay rate slips below minimum wage is higher than the minimum... And their employees wage rate increases by year wage at $ 7.25 an hour beginning, January 1 2020! Pursuant to the Runoff Election until it hits $ 15 in 2025 chooses pay! Illinois has several what is the minimum wage in illinois 2022 laws taking effect in 2021, one of which employers... A Commission investigation an increase of $ 15.00 by January 1, 2020, Adult minimum is! Labor or any governmental organization for the family with Household help to our and!
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