rate that applies to employees of all companies who work within Cook County. Some regions in Illinois have higher minimum wages than the state average. Fully updated for March 2017! 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). 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 Cicchini said Monday. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. The state is on a regular increase schedule, going up $1 each year on Jan. 1. The first step is to assess your minimum wage workers. A10: The MWO does not apply to independent contractors. IL Admin. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). SPRINGFIELD - The Illinois minimum wage is set to increase another dollar on Sunday, January 1, 2023, making the new required minimum wage $13 an Employers must implement a 20-minute break for each 7.5-hour shift. Code 210.640. Confiscating gratuities of tipped employees. Learn how to enable JavaScript in your web browser. 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. 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. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. Minimum wage workers in IL earn a total of $330.00 per week, or $17,160.00 per year. The Human Rights Commission does not provide lawyers or legal advice. Another efficient way is to increase your companys productivity during the set working hours. Suppose an employer chooses to pay employees minimum wage. For further information on these increases, please visit the Illinois Department of Labor website. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. 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. The intermediate increases are: 2022. Illinois standard minimum wage is $13, effective Jan. 1, 2023. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. Paying anything less than minimum wage is a wage violation and can cause trouble for the family with household help. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. How can employers in Illinois better meet the rising minimum wage standard. 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. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. The federal minimum wage is $7.25 an hour. WebMinimum wage. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. 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. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. 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 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. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. As we have featured above, the people of Illinois can expect a series of minimum wage increases until 2025. You may contact a Human Rights Investigator if you have any questions about the complaint process. Not providing adequate paid breaks can also be counted as unpaid wages. Tipped employees may be paid 60% of the hourly minimum wage. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. The base wage for tipped employees in Cook County increased from $5.30 to Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? The rate will continue to increase on Jan. 1 each year until it hits $15 per Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. Do you really need to employ all of them? Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. Is any of our data outdated or broken? 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. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. 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). Let us know in a single click, and we'll fix it as soon as possible. Read our, Illinois Employers Owe Federal Unemployment Tax. 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. In the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. Suite 1130, 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. This field is for validation purposes and should be left unchanged. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. A private employer will probably fare better by hiring contract employees, especially during an off-peak calendar quarter. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. State Laws Federal Laws Topics Articles Resources, Wage and Hour Laws in Illinois | Current Illinois Labor Laws. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. Code 210.610; IL Admin. 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. Complaint forms and additional information can be found online. Meanwhile, unpaid overtime compensation is also not an option. 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. Each increase will take effect every first of January of each year. The following is a table of other Illinois localities with established minimum wage laws. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. Pursuant to the Minimum Wage Ordinance (Sec. Copyright 2023 WLS-TV. 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). 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. Expert advice, industry insights, and curated content, delivered to you once a week. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. In 2022, it was $12 an hour. Some states and cities automatically increase their rates annually. The minimum wage in Illinois just went up -- again. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. *Please refer to our Privacy Policy for more details. 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. 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. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. SEE ALSO | Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022. 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. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. Save time! 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 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. 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