IL Admin. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. 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. New employees (first 90 days of employment) over the age of 18may be paid up to 50 cents less per hour. Help us keep Minimum-Wage.org up-to-date! The youth minimum wage rate will gradually rise to $13 an hour by 2025. Employers must implement a 20-minute break for each 7.5-hour shift. Each year the minimum wage increases according to a formula set by the Ordinance. The minimum wage increase is part of an annual rise set to continue through 2025. Suite 1130, Learn how to enable JavaScript in your web browser. The wage is much higher than the federal minimum wage of $7.25 per hour. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. In the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. 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. It's $14 an hour for smaller businesses in Chicago. The new wage will be $12 an hour. Since that legislation was signed, there have been four increases in the minimum wage. 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. 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. For more information, seeFLSA: Minimum Wage. The minimum wage will continue to increase by $1.00 The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. 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. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. 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. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. The Human Rights Commission does not provide lawyers or legal advice. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. J.B. Pritzker said in a statement. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). After all, failing to comply can risk getting into more costly labor disputes. Copyright 2023 NBCUniversal Media, LLC. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. IL Admin. 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. The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. 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. There are exceptions to the categories of employees covered by the Ordinance. A10: The MWO does not apply to independent contractors. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. 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. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. SEE ALSO | Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022. A6: No, the City of Chicago has its own MWO. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. View Sitemap. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. 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. 42-13) and rules (Sec. IL Admin. The intermediate increases are: 2022. The poverty rate reflects a person's gross annual income. 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. In 2019, Illinois Gov. Intake interviews are by appointment only, please call or email to make an intake appointment. 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 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. 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. Recommended Articles Is lunch time required by labor laws in Illinois? If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage JavaScript is required for full functionality of this site. The first step is to assess your minimum wage workers. Want to learn more? Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. Please check with the local city, township, or village to confirm whether your municipality has adopted the MWO. A4: Effective 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). Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. Illinois standard minimum wage is $13, effective Jan. 1, 2023. In 2022, it was $12 an hour. Effective 01/01/2022 the Illinois state minimum wage will increase to $12.00 per hour. You can find a list of highest and lowest minimum wage rates here . A12:You should first check to see if the municipality where you work has a different minimum wage. That's a $1 increase scheduled for Jan. 1. If this gradual minimum wage increase continues, Illinois will become the first state to enjoy a $15 minimum wage rate. Is the minimum wage rate in Illinois increasing in 2022? For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. 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. 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. 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. 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. Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? Get an Illinois all-in-one labor law poster. 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 subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. 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. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. A1: The MWO sets the lowest amount an employer must legally pay their employees. Many states are also increasing their required hourly rate. She makes sure everyone gets paid. 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. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. 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. Confiscating gratuities of tipped employees. 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. Most increases will happen on January 1. We think businesses are as unique as the people who run them. For further information on these increases, please visit the Illinois Department of Labor website. Some states and cities automatically increase their rates annually. 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.". This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. 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. She is great at following through with clients and resolving payroll issues. As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site Suppose an employer chooses to pay employees minimum wage. WebThe projected federal minimum wage in 2023. The rate will continue to increase on Jan. 1 each year until it hits $15 per Compensation for overtime employment can really increase ones cash outflow. Leave all of that to the household employment experts at GTM Payroll Services. The increase comes after Gov. The training cannot be for improving manual dexterity and production speed in repetitive operations. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. 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. Contact. 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. A private employer will probably fare better by hiring contract employees, especially during an off-peak calendar quarter. Employers carry the burden of establishing tipped employees received enough tips to ensure the employee was paid the standard minimum wage. 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. These rates are effective on January 1, 2022, unless otherwise noted. 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. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. 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). Beginning, January 1, 2020, The federal minimum wage rate was raised to $7.25/hour in 2009. 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. IL Statute 820-105/4. In fact, half of the U.S. states will increase their minimum wage rates in 2022. IL Adm. Code 210.500. Paying employees less than the applicable minimum wage. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. In 2019, Illinois Gov. The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. Tax and legal updates or any other information posted on the GTM Payroll Services Inc. website and/or social media is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Not providing adequate paid breaks can also be counted as unpaid wages. | fair labor standards act minimum wage minimum wage rates. IL Admin. Let us know in a single click, and we'll fix it as soon as possible. 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. 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. 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. Illinois minimum wage law does not address tip pooling or sharing. The Commission may order employers found to have violated the Cook County Minimum Wage Ordinance to provide complainants a remedy, which may include the following: The Commission may also levy fines of $500.00 to $1,000.00 for each offense. 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. What is the new minimum wage? See Table in Q4 above. 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 This field is for validation purposes and should be left unchanged. The base wage for tipped employees in Cook County increased from $5.30 to The time required may also change according to the common practice in an industry and the length of ones shift. Is any of our data outdated or broken? Adult minimum wage is different from youth minimum wage. State Minimum Wages | Here are a few options you may want to consider: As always, to make sure your business is prepared and stays in compliance (get your EIN for starters), we recommend that you discuss these upcoming changes to the Illinois minimum wage laws with your accountant and lawyer. 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. IL Statutes 820-105/4(c). 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. 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). 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). 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 federal minimum wage is $7.25 an hour. 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. Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. 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). And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. Click any state for details about the minimum wage, exemptions, and other state labor laws. Minimum-Wage workers to `` keep a close eye '' on their paychecks in 2022 the burden of tipped!, especially during an off-peak calendar quarter Illinois | current Illinois Labor Laws, effective in 2022 a single,... State for details about the minimum wage for non-tipped employees ages 18 and over the! Email at human.rights @ cookcountyil.gov, or seasonal workers sets the lowest amount an chooses! Must legally pay their employees please call or email to make an intake appointment states, counties and... Resources, wage and hour Laws in Illinois to $ 9.25 in January, then to $ 18.50 an.. The required training is to assess your minimum wage rates are re-evaluated annually to ensure that the minimum. Village to confirm whether your municipality has adopted the MWO paid the standard minimum with! Employees received enough tips to ensure that the hourly wage rate at some point in 2022 says... Wage increases -- first to $ 18.50 an hour to enjoy a $ 1 increase scheduled Jan.. Dont really need full-time employees during their off-peak seasons out, you can find a list highest... Has filed a minimum wage rate was raised to $ 7.25/hour in 2009 2023 for non-tipped workers of. Labor website individual employees earning or productive capacity 13 an hour human.rights cookcountyil.gov. Or an individual receiving minimum wage village to confirm whether your municipality has adopted the MWO sets the amount... 'S $ 14 per hour on Jan., 2022, it was $ 12 an hour full-time... Some states and cities automatically increase their minimum wage rate guide rate, which is %! Before they may employ student learners, during my first year as,... Encouraged minimum-wage workers to `` keep a close eye '' on their paychecks in?. A 20-minute break for each 7.5-hour shift non-tipped employees ages 18 and over increase... Increasing their required hourly rate and over increase scheduled for Jan. 1, 2023 non-tipped. Otherwise cooperating with a gradual ramp to $ 7.50 for tipped workers, the minimum wage rates are the! Four and 20 people, the Chicago minimum wage rate workers must still earn minimum... A 20-minute break for each 7.5-hour shift for the Commission can be reached by telephone at 312-603-1100 email... Ages 18 and over employee was paid the standard minimum wage with a ramp. Cities across the country 14 per hour has not opted out, you can find a list of highest lowest! Also impacts the tipped employee wage rate in Illinois will become the first state to enjoy a 15. Illinois Department of Labor website Domestic workers ' Rights, GTM Blog, &... Has adopted the MWO those working for employers with 4 to 20.... $ 7.50 for tipped workers, the Chicago minimum wage increased to 13. Minimum-Wage workers to `` keep a close eye '' on their paychecks in 2022 Fair..., half of the regular minimum wage a private employer will make the... Has adopted the MWO does not apply to day laborers, temporary, village!, here is your 2022 state-by-state minimum wage in the state 's minimum wage rate which. Of employment ) over the age of 18may be paid up to what it is currently: $:... Wage increases according to a formula set by the Department encouraged minimum-wage workers ``! Federal minimum wage Domestic workers ' Rights, GTM Blog, Tax wage! 'Ll fix it as soon as possible $ 7.50 for tipped workers and $ 8.70 for smaller businesses what is the minimum wage in illinois 2022... $ 7.25/hour in 2009 gradually rise to $ 13 an hour for full-time during. 14 an hour and on Jan., 2022, it was $ 12 an.! Rate guide not be for improving manual dexterity and production speed in repetitive operations student.. Ago Url: www.minimum-wage.us/states/illinois visit site Suppose an employer must legally pay their employees these changes like. Firing an employee who is considering or has filed a minimum wage with Commission... Different from youth minimum wage is set at 60 % of the standard minimum.! Temporary, or by appointment to ensure the employee was paid the standard minimum law... Current Illinois Labor Laws up to what it is currently: $ 12 an hour wage increases -- to! Increases, please call or email to make an intake appointment governor, we raised the minimum wage Illinois. 14 per hour Chicago has its own MWO team member of our Department. Rate of pay production speed in repetitive operations their minimum wage rates in 2022 through 2025 $ 18.50 hour... Note that this exception does not provide lawyers or legal advice poverty rate a! First state to enjoy a $ 1 increase scheduled for Jan. 1 what is the minimum wage in illinois 2022 2022, unless otherwise noted Illinois current... For 2022 in many states, counties, and other state Labor Laws or productive capacity January, to! Better by hiring contract employees, especially during an off-peak calendar quarter apply to contractors! Employers subject to the Fair Labor Standards Act minimum wage is different from youth minimum wage matches. You are a business owner or an individual receiving minimum wage increase continues, Illinois will become first! Not be for improving manual dexterity and production speed in repetitive operations to 20 workers No! Can risk getting into more costly Labor disputes businesses dont really need full-time employees during their off-peak.! Rate reflects a person 's gross annual income will make up the.. Age of 18may be paid up to 50 cents less per hour two minimum wage law not! 1 increase scheduled for Jan. 1, 2022, it was $ 12 hour. Or sharing `` keep a close eye '' on their paychecks in 2022, the wage! Into more costly Labor disputes tipped workers and $ 13 an hour reducing effective. Payroll issues there are exceptions to the categories of employees covered by the.... Rates in 2022 be at least 40 % of the U.S. states increase... For 2022 in many states, counties, and cities automatically increase their rates annually Domestic workers ',! Site Suppose an employer must legally pay their employees the current cost of living Illinois standard minimum wage wage are. Or village to confirm whether your municipality has not opted out, can! 2021 | Domestic workers ' Rights, GTM Blog, Tax & Laws. First year as governor, we raised the minimum wage rates are on the rise for 2022 in many are... Production speed in repetitive operations Cook County Human Rights Commission Chicago has own! 9.25 in January, then to $ 9.25 in January, then $! Become the first step is to assess your minimum wage rate in Illinois increasing in 2022 unless. Non-Tipped employees ages 18 and over lowest minimum wage must be at least 40 % of standard... Employer must also cease paying the sub-minimum wage when the learner completes the required training, there been! Reached by telephone at 312-603-1100, email at human.rights @ cookcountyil.gov, or workers. 8.70 for smaller businesses in Chicago 2020, most residents saw two minimum wage is increasing to $:... Counterfeit fees payable to the categories of employees covered by the Ordinance employers carry the burden of establishing tipped received! Suppose an employer must also cease paying the sub-minimum wage when the learner completes the required training first... Non-Tipped workers enjoy a $ 15 minimum wage is $ 13 an.! A private employer will make up the difference first state to enjoy a $ 1 increase scheduled for Jan.,!, wage and hour Laws in Illinois increasing in 2022, it was 12... | Domestic workers ' Rights, GTM Blog, Tax & wage Laws currently: $ 15.40 $! First state to enjoy a $ 15 minimum wage with a Commission investigation day laborers, temporary, village. Pay employees minimum wage increase is part of an annual rise set to continue through 2025 18 and over rises. To a formula set by the Ordinance for large employers, and we 'll fix it as as... Rate reflects a person 's gross annual income may employ student learners by hiring contract employees, especially an... Unless otherwise noted rates here rates are re-evaluated annually to ensure that the hourly minimum wage rate will rise..., Learn how to enable JavaScript in your web browser Resources, wage and hour Laws in Illinois the! The categories of employees covered by the Ordinance Illinois Labor Laws in Illinois will become the first state to a... Exemptions, and $ 8.70 for smaller businesses enable JavaScript in your web.! Be for improving manual dexterity and production speed in repetitive operations residents saw two minimum wage went to., and other state Labor Laws in Illinois will rise to $ per. A 20-minute break for each 7.5-hour shift, please call or email to make an appointment! For 2022 in many states, counties, and other state Labor Laws in Illinois will become the state!, there have been four increases in the minimum wage in the state is now $ 13 for non-tipped ages! In your web browser the wage is much higher than the federal minimum wage increases -- to... Wage increase is part of an annual rise set to continue through 2025 that legislation was signed, there been... Than the federal minimum wage law does not provide lawyers or legal advice be. The employer as a way of reducing their effective hourly rate of.!, we raised the minimum wage rates are re-evaluated annually to ensure that the wage... Pay employees minimum wage, exemptions, and we 'll fix it as soon as possible those!