The Illinois minimum wage is scheduled to increase to $14 per hour by Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. 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. IL Admin. New employees (first 90 days of employment) over the age of 18may be paid up to 50 cents less per hour. IL Statutes 820-105/4(c). 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. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. In fact, half of the U.S. states will increase their minimum wage rates in 2022. And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. 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. 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. Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site Code 210.640. 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. Nannies and other household employees are covered by the It is important to know what these changes look like whether you are a business owner or an individual receiving 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. Tipped employees may be paid 60% of the hourly minimum wage. Illinois current minimum wage is $13.00. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. 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. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. A domestic employer can be sued by their worker for back wages and/or be fined by their states labor agency for not following minimum wage rates. 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. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; 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. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. A6: No, the City of Chicago has its own MWO. Complaint forms and additional information can be found online. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. JavaScript is required for full functionality of this site. The increase comes after Gov. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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. Expert advice, industry insights, and curated content, delivered to you once a week. See Table in Q4 above. 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. Chicago, IL 60602. She is great at following through with clients and resolving payroll issues. 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. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. Is the minimum wage rate in Illinois increasing in 2022? It's $14 an hour for smaller businesses in Chicago. Here is a state-by-state guide to 2022 minimum wages rates. IL Admin. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. A10: The MWO does not apply to independent contractors. Let us know in a single click, and we'll fix it as soon as possible. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. Pursuant to Public Act 101-0001 New employees (first 90 days of employment) over the age of 18 may be paid up to 50 cents less per hour. 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. 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 federal minimum wage is $7.25 an hour. Another efficient way is to increase your companys productivity during the set working hours. IL Statutes 820-105/6(d); IL Admin. 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. 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. Pursuant to the Minimum Wage ordinance (MWO) (Sec. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. You can also explore other employee options. 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). 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. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar Each increase will take effect every first of January of each year. The first step is to assess your minimum wage workers. Earnfare participants may now earn up to $420 per month due to the state Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. Meanwhile, unpaid overtime compensation is also not an option. Read our, Illinois Employers Owe Federal Unemployment Tax. The rate will continue to increase on Jan. 1 each year until it hits $15 per All Rights Reserved. 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. 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. 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. Paying employees less than the applicable minimum wage. Do you really need to employ all of them? What is the minimum wage in Chicago? Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. Many states are also increasing their required hourly rate. 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. 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. What is the new minimum wage? During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. The youth minimum wage rate will gradually rise to $13 an. The list of municipalities that do not follow the MWO changes frequently. Learn how to enable JavaScript in your web browser. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. Leave all of that to the household employment experts at GTM Payroll Services. There are exceptions to the categories of employees covered by the Ordinance. Get an Illinois all-in-one labor law poster. 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. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. WebMinimum wage. Get help from our experts on how to manage your household tax and payroll. These workers must be paid the Countys minimum wage during the entire duration of employment. Maryland Maryland was another state that passed a 2019 law to move toward a $15 This is primarily based on the Consumer Price Index (or CPI). 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. If this gradual minimum wage increase continues, Illinois will become the first state to enjoy a $15 minimum wage rate. *Please refer to our Privacy Policy for more details. 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. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Not providing adequate paid breaks can also be counted as unpaid wages. If the municipality has not enacted their own minimum wage, the Countys MWO applies. Most Common Payroll Mistakes and How to Avoid Them. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1. These FAQs should not be interpreted as legal advice. 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. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. This field is for validation purposes and should be left unchanged. The current minimum wage in Illinois is $13 per hour. IL Admin. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. Suite 1130, 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. IL Adm. Code 210.500. Need help understanding how to pay your nanny the right way? Employers carry the burden of establishing tipped employees received enough tips to ensure the employee was paid the standard minimum wage. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. 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. These rates are effective on January 1, 2022, unless otherwise noted. The tipped minimum wages will rise to $8.40 in 2024 and $9 in 2025. The poverty rate reflects a person's gross annual income. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. Employers may obtain a license by filing an application with the Illinois Department of Labor and the license, if requested, may authorize the employer to employ more than one learner in the same capacity. All Rights Reserved. The weekly Household Employer Digest delivered to your inbox. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. Additionally, non-tipped employees may be paid a minimum wage of $7.80 in 2023 if applying the tip credit during their first 90 days with an employer. How can employers in Illinois better meet the rising minimum wage standard. Yes, it is. 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. Currently, the Illinois minimum wage is higher than the federal one. Student learners are individuals who receive course credit for participating in school-approved work-study programs. 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. Get individualized content on the topics you care about most by telling us a little more about yourself. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. Copyright 2023 NBCUniversal Media, LLC. Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. A12:You should first check to see if the municipality where you work has a different minimum wage. Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. 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. See Table of Minimum Wage Increase for the State of Illinois: A5: The Ordinance does not apply to employees under the age of 18 years. A11: Employers are not required to pay minimum wage during the first 90 days of employment. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. SEE ALSO | Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022. 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. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster Pursuant to the Minimum Wage Ordinance (Sec. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. 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. Adult minimum wage is different from youth minimum wage. 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. WebThe projected federal minimum wage in 2023. Help us keep Minimum-Wage.org up-to-date! The minimum wage will continue to increase by $1.00 The time required may also change according to the common practice in an industry and the length of ones shift. 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? Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. WebThe table below lists the current prevailing 2023 minimum wage rates for every state in the United States. Illinois standard minimum wage is $13, effective Jan. 1, 2023. There have been three increases in the minimum wage since Pritzker signed that legislation. 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. 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. 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