Chicago's minimum wage is going up Thursday. The minimum wage for employees under the age of 20 is $4.25 per hour for the first 90 days of employment, and after this, they are eligible for their Chicago minimum wage rate. Fight for $15 protesters rally and chant "We're fired up, can't take it no more," in Chicago on April 14, 2016. are struggling with the effects of sky-high inflation. The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. There are some exceptions: For example, tipped employees must make a minimum of either $9.24 for large employers or $8.70 for medium-sized employers. Anyone age 24 or younger employed by, or engaged in employment coordinated by a nonprofit organization or government agency will see a minimum wage increase to $12.00 on July 1, 2022. "We estimate they're close to 500,000 workers, that this increase will affect and help uplift and each and every one of them should see that increase in their next paycheck," said the deputy chief of staff for the Chicago Federation of Labor. "Employers that maintain a business facility within the City of Chicago or are required to obtain a business license to operate in the City are required to pay their employees at least the Chicago minimum wage," a press release from the city states. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. Illinois' statewide minimum wage increased to $11 on Jan. 1 and will continue to gradually rise until it reaches $15 at the beginning of 2025. What will your paycheck look like? Restaurant workers and others who receive tips will now get a base rate of $9 per hour. Scheduled changes are also coming to the citys Fair Workweek Ordinance, which requires employers in certain industries to give employees advance notice of their schedules and pay them for last-minute changes. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. To learn about Chicagos labor laws, visitChicago.gov/LaborStandards. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. Even if you work outside of Chicago, you may be paying less than the minimum wage. It has not increased since 2009. Chicago, Illinois Local Minimum Wage for 2022, 2023 While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage rates that apply to employees of different classes of company who work Chicago. Your email address will not be published. July 1, 2022. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. The minimum wage for workers under-18 in Illinois who work less than 650 hours in a calendar year is $8.50. "Employers need to know that these wage increases are not optional. It is set to increase Jan. 1, 2023, to $13 and $7.80, respectively. Several factors influence the minimum wage in Chicago, including the economy and the number of jobs available. The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. Save my name, email, and website in this browser for the next time I comment. "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. Local Minimum Wage Rates. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Eligible youth can find qualifying opportunities by downloading the My CHI. "u$G All Domestic Workers must receive at least the $15.40 minimum wage. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees. Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. For businesses with 20 or fewer employees, the minimum wage is $14.50 an hour, with a tipped minimum wage of $8.70. hbbd```b``"H; 5Dc0y L'`2D2 m_&II1`Y#)V"= 6R*Dr L W,R $8rF` !v hbbd```b``@$gj9` % TEdDH4) Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage Copyright 2023 WLS-TV. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; Youth Workers . The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. HVNI}Gj#EDq2L:fY~O_flIOWwWSvu\]_'+z:XWjrEV\ kJ`}xr3[._GC*CFCAQ4+68$T\d4|{DQT'j=JpZ=p6?)4=/&'a[TLA {$BXj'Tb%z K2t7&'-u |pip74hH#-Q&st`21A ng|R!j =}7"1h((%km3#"39HMRhB%aD--1~wNN8bdFNHtq@ R; 9BiN2z2&PDd`:fnBI![Tnw RJJjy-QBrQ&[koiN6tdGJdR~JF;.FmU*:ZEjkx85H7^u,':,[hX\)3B>L[rzbD0+Tt(=E]Y?r=eRI\5s\ "Now I will have to keep going higher and higher than the minimum wage because a lot of people don't want to work for minimum wage," Owner Laricia Baker told the I-Team. The increase, of 40 cents for workers at the city's large employers, comes at a time. %%EOF TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. ). 183 0 obj <>stream The average Illinoisan has seen wages cut by $2,200 in the past decade, while inflation has increased by 10 percent (according to the Bureau of Labor Statistics). New minimum wages in effect July 1 for Chicago, Cook County . That number comes from a 2019 report from the Illinois Economic Policy Institute that found a $15 minimum wage could directly affect over 430,000 workers in the city. Mayor Lightfoot has worked tirelessly to ensure that Chicagos workers, especially the most vulnerable, are protected under Chicagos labor laws. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. The law also requires employers to pay overtime to employees who work more than forty hours in a week. For instance, employees under the age of 18 must be paid $12 an hour. Usage is subject to our Terms and Privacy Policy. The minimum wage in Chicago and suburban Cook County increased Friday and in the city, new parts of the Fair Workweek Ordinance took effect. And that $15 an hour would make a difference for so many, especially for . The Minimum Wage ordinance in Chicago currently provides that workers, defined as Covered Employees, shall earn $14.50 per hour if they work for an employer that has from 4 to 20 employees and $15.40 for an employer that has 21 or more employees. For tipped workers, the rates will also increase -- to $9.24 for large employers and $8.70 for smaller businesses. Nixle is increasing Chicagos minimum wage because we believe a fair days pay is part of our longstanding commitment to safety in the workplace. endstream endobj 267 0 obj <>/Metadata 5 0 R/OCProperties<>/OCGs[298 0 R]>>/Outlines 9 0 R/PageLayout/SinglePage/Pages 264 0 R/StructTreeRoot 12 0 R/Type/Catalog>> endobj 268 0 obj <>/ExtGState<>/Font<>/Properties<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 269 0 obj <>stream Copyright 2023 NBCUniversal Media, LLC. The more generous minimum wage may apply in these localities: Seattle: $18.69/hr. But if they don't make $15 per hour on average overall, employers must make up the difference to reach that new citywide minimum wage. endstream endobj startxref And now, as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market, many workers see participation in the labor movement as a key to higher wages. *> Is any of our data outdated or broken? Chicago minimum wage in 2022 will be $14 or $15, depending on the number of employees and the size of the business. The citys ordinance also extends certain sexual harassment protections for workers. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. But proponents of increasing Chicago's minimum wage argued that the cost of living in Chicago relative to the rest of the state requires a faster timeline. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. Youths working less than 650 hours per year. Our city's labor laws, including the minimum wage, are an important backbone of our city's economy and provide stability to working families. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower, since reaching $15 per hour in 2021. It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. }y>"e't:ikz1(ET&Mj^|M2FeI;oWym?RV:G\d~~QgqVpVx!nMr{:fBbZ[A >[m;!av$voedkubG|D,Wql1.DUYEj-xkI='aZ?]aoe!NvJR6l9c0'(!t,x|?N_{yuy#olII>]vd$Z#{gh?ECc+Rv-H The citys minimum wage policies and exceptions can be complicated. When she gets her check these days, she pays her bills, rent, light bill, gas bill, and may have only $100 left, which she says is not enough. 266 0 obj <> endobj uJ(\cZYy:8-_Sg8W8gjcAn~k_65c%M'6nr Z1?vc33D$(MTfJ/`\b9{iN&D!w5v2eO>(p_MO%~|sp^0C9d20eeR1=7{Z#*"ng5Z03,>,b[]/2.R7Bw1}#aXYk(Ri8s4T7io7. R wy8yM`?xioUrX/ !f BACP will host free informational webinars to prepare employers for the upcoming changes to Chicagos Labor Standards Laws. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower, since reaching $15 per hour in 2021. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower, since reaching $15 per hour in 2021. By this date, the notices must be posted in multiple languages. Companies with wage floors at $15 or higher include big employers like Target, Costco and Amazon. If the tipped . Notice effective on July 1, 2022. Anyone . Details This page contains the Low Pay Commission's recommendations on the National Living Wage and National Minimum Wage rates which will apply from 1 April 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. Additionally, any employee that works two hours or more in the City within a two-week period must also receive at least the Chicago minimum wage. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. Now, employees in covered industries who make less than $29.35 per hour or $56,381.85 per year will be covered by the ordinance. All Chicago worker protections are enforced by the BACP Office of Labor Standards (OLS). Last updated June 7, 2022. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. Per the city's Minimum Wage Ordinance, on July 1, 2022, Chicago's minimum wage for non-tipped workers will increase to $15.40 for large businesses that employ 21 or more workers, and. It will continue to increase every year, linked to the Consumer Price Index and capped at 2.5%. Those smaller businesses will then continue to see minimum wage increase by 50 cents per year to reach $15 an hour by 2023. When applying an allowance for gratuities to the wage of City concessionaire employees in positions that customarily receive gratuities, the resulting rate is $8.20 per hour. State 2022 Minimum Wage 2023 Minimum Wage (effective 1/1/23 except as noted) Alabama : $7.25 (Federal, no state minimum) Alaska : $10.34: $10.85: Arizona : $12.80: $13.85: Arkansas : $11.00 : California : $15.00 for businesses with 26+ employees; $14 for businesses with 25 or fewer employees: The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. 2020: $12.75. Learn more atLearn more at Chicago.gov/COVIDVax. Vaccines protect you and the people around you, reducing the spread of COVID-19. In 2022, they must make $9.25 per hour. Tipped workers (workers who receive tips as part of their wage, like restaurant servers) have a minimum wage of $8.70 for employers with 4 to 20 workers, and $9.24 for employers with 21 or more workers. The departments investigators can answer questions and look into whether a case may need to be investigated more formally, Fox said. However, Chicagos minimum wage will rise to $15 per hour in 2022, and its expected that the increase will continue to rise toward that number. Cook County, which has it's own Minimum Wage Ordinance, will also increase its minimum wage on July 1, from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped workers. But July 1, that rate is set to increase, according to officials. Chicago minimum wage is tiedred, meaning that businesses with 21 or more employees must pay more than businesses with four to 20 employees. And. hmoH~lUM4^=jld;Uof $F@.Y Chicago's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. If you are not seeing the minimum wage increase in your paycheck and you think you should be getting it, you may want to avoid confronting your boss. If the citys unemployment rate meets or exceeds 8.5% in a given year, there will be no minimum wage increase the next year. In addition to the city's minimum wage increase on July 1, certain industries in Chicago including healthcare, hotel, restaurant, retail or warehouse, at that time will also be required to post work schedules with at least 14 days' notice, an increase form the previous 10 days' notice. CHICAGO Today, Mayor Lori E. Lightfoot and the Chicago Department of Business Affairs and Consumer Protection (BACP) announced the annual scheduled increase in Chicagos minimum wage and a scheduled enhancement of the Fair Workweek ordinance requirements. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. How That Could Change, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. The minimum wage is set by the citys ordinance. With 71 percent of our total budget coming from local, city and county contracts, we are acutely aware of how important it is for workers to be paid fairly for their labor. 2023: $15. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. That means that even though inflation hit 8.6% in May, Jalen Carter, a top NFL draft prospect, charged with reckless driving and racing in fatal accident in Georgia, Greek transport minister resigns after head-on train crash kills at least 36, Southtowners: Evergreen Park art students win, Lemont successful at state, and more, Do Not Sell/Share My Personal Information. particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. The increase will affect tipped employees as well. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. ABC 7s I-Team breaks down the numbers for you. Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. Instead you can report it. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. What is minimum wage in Chicago 2022? The cohort of workers covered under the ordinance will also expand. A $1 increase in Illinois' minimum wage is set to take effect on New Year's Day 2022. . As of July 1, 2022, the Minimum Wage to be paid under City contracts or concessionaire agreements pursuant to the Order is $16.00 per hour. And. Fight for $15 protesters rally and chant "We're fired up, can't take it no more," in Chicago on April 14, 2016. Deerfield-based Walgreens announced last year it would raise starting wages to $15 an hour for all workers by November of this year. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. Earlier this year, Illinois amended its minimum wage law to gradually increase the minimum wage for Illinois employees to $15/hour by 2025. 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 Chicago. 0 CHICAGO (WLS) -- The minimum wage in Chicago and suburban Cook County increased Friday. Domestic workers like those in childcare and home health services must be paid at least $15.40 an hour, regardless of the size of the company. Another exception is for young employees those 24 or younger of religious corporations or organizations. Domestic workers like those in childcare and home health services must be paid the same, regardless of the size of the company. For medium-sized companies with between four and 20 employees, workers must make a minimum of $14.50 an hour, up from $14 last year. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. Employers that maintain a business facility within the City of Chicago or are required to obtain a business license to operate in the City are required to pay their employees at least the Chicago minimum wage. It will reach $15 on July 1, 2023. According to the Department of Business Affairs and Consumer Protection, Chicago minimum wage is not keeping pace with national inflation. If they fail to do so, they can be fined between $500 and $1,000 per day. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. Overtime pay equals time and a half of an employees regular pay rate. And, the rate is higher outside the city limits. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. Chicago has a long, proud history of being allied with workers, both promoting and protecting their rights, said Mayor Lightfoot. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. The webinar, Employer Responsibilities Under Chicagos Minimum Wage Ordinance, will take place Tuesday, June 7, at 2:00 p.m. Additionally, the webinar, Employer Responsibilities Under Chicagos Fair Workweek Ordinance, will take place Thursday, June 9, at 2:00 p.m. To register for thewebinars, visitChicago.gov/BusinessEducation. "Raising the minimum wage to $15.40 and requiring employers to post schedules 14 days in advance not only protects the rights of workers but creates better economic opportunity for all residents. No: Yes: 4. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. July 1,2022 Effective Date. Df&CA$g`@8/`5Lg`Z Alaska Minimum Wage 2023 (right information). Learn more atLearn more at Chicago.gov/COVIDVax. Content 2023 Minimum-Wage.org, all rights reserved. Chicago minimum wage 2023, what is? The citys Fair Workweek Ordinance, which went into effect in 2020, requires large employers in certain industries to give workers advance notice of their schedule and pay them for last-minute changes. Employers should consider updating their minimum wage posters to reflect the new rates. In addition to Chicago, there are other localities in Illinois that have passed municipal minimum wage legislation. Businesses with fewer than 21 employees are required to pay employees at least $14.50 an hour. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense. gRsg[sH~3\C? All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. "Additionally, any employee that works two hours or more in the City within a two-week period must also receive at least the Chicago minimum wage.". Its expected to increase by less than 3%, a tenth of that amount. The minimum wage as of July 1, 2022 will be: $15.40 for employers with 21 or more employees (including all domestic workers, regardless of the number employed) . 0 {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D Click any state for details about the minimum wage, exemptions, and other state labor laws. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. In addition, it will also affect tipped employees. However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. Last year, the minimum wage was $11 and $6.60, respectively. Unfortunately, the Consumer Price Index this year exceeded that, Fox said. But how much money could you get? For tipped employees in Chicago, the minimum wage will be $9.24 for employers with 21 or more workers and $8.70 an hour for businesses with fewer than 21 workers. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Let us know in a single click, and we'll fix it as soon as possible. The minimum wage increase comes just in time for those struggling as the cost of everything is going up. State Minimum Wage Rates 2022 vs. 2023. endstream endobj 270 0 obj <>stream The ABC 7 I-Team found out who may and may not benefit, and breaks down the numbers in your paycheck. Beginning in 2022, the minimum wage in Chicago will increase each year at a rate tied to the consumer price index, capped at 2.5% annually. Because Chicago 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. The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. Note that this ordinance is subject to our Terms and Privacy Policy more formally, Fox.! Continue to see minimum wage Copyright 2023 WLS-TV answer questions and look into whether a case may to! Equals time and a half of an employees regular pay rate table below lists the current wage! 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