Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. You can find a sample notice for employees, rules and regulations, and frequently asked questions in the Downloads section of this page. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. 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. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. 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. Illinois. Beginning on July 1, 2022, the minimum wage in Chicago will be: Employees under 18 years of age, and those subject to Section 6 of the Illinois Minimum Wage Law ($7.20 per hour for tipped Employees like restaurant servers). Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. You can find more information about Illinois' minimum wage and labor laws on this site. Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. IL Statute 820-105/4. She is great at following through with clients and resolving payroll issues. New employees (first 90 days of employment) over the age of 18may be paid up to 50 cents less per hour. Cook County Government. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. Get an Illinois all-in-one labor law poster. The state is on a regular increase schedule, going up $1 each year on Jan. 1. 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. 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. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. See Table in Q4 above. 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 minimum wage will continue to be subject to Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. 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. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. 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. Fully updated for March 2017! Usage is subject to our Terms and Privacy Policy. If this gradual minimum wage increase continues, Illinois will become the first state to enjoy a $15 minimum wage rate. Understanding the Federal Minimum Wage 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. 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. Confiscating gratuities of tipped employees. A12:You should first check to see if the municipality where you work has a different minimum wage. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. In 2022, it was $12 an hour. How to Do Payroll Taxes and Process Payroll Yourself WebThe projected federal minimum wage in 2023. 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. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. A10: The MWO does not apply to independent contractors. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). These FAQs should not be interpreted as legal advice. Read our, Illinois Employers Owe Federal Unemployment Tax. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. The current minimum wage in Illinois is $13 per hour. A2: The Ordinance applies to hourly, salaried, and tipped employees, over the age of 18, working in Cook County, even those who may be working within the County to make deliveries or driving within the County limits. Minimum wage workers in IL earn a total of $330.00 per week, or $17,160.00 per year. The 2022 Illinois state minimum wage rate is $8.25 per hour. 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. To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. Leave all of that to the household employment experts at GTM Payroll Services. Adult minimum wage is different from youth minimum wage. 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? What is the minimum wage in Chicago? 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. 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 subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. Each year the minimum wage increases according to a formula set by the Ordinance. 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. The minimum wage increase is part of an annual rise set to continue through 2025. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. In this way, you wont have to worry about the rate for overtime pay anymore. 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. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. A9: Yes, the Ordinance applies to tipped employees. 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. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. The current Illinois minimum wage of $12.00 per hour is the lowest amount a non-exempt employee in Illinois can legally be paid for hourly work. Special minimum wage rates, such as the "Illinois waitress minimum wage" for tipped employees, may apply to certain workers. In 2019, Illinois Gov. Thats why, during my first year as governor, we raised the minimum wage with a gradual ramp to $15 an hour. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. We have converted it to an hourly wage for the sake of comparison. There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. 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. Copyright 2023 WLS-TV. Copyright 2023 NBCUniversal Media, LLC. Therefore, the minimum wage remains at $13.00 per hour for non-tipped employees. As of January 1, 2022, the minimum wage for tipped workers increased to $7.20 per hour, in alignment with the Illinois State minimum wage. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. The federal minimum wage is $7.25 an hour. Compensation for overtime employment can really increase ones cash outflow. 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. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. 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. There have been three increases in the minimum wage since Pritzker signed that legislation. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Illinois standard minimum wage is $13, effective Jan. 1, 2023. IL Admin. Employers carry the burden of establishing tipped employees received enough tips to ensure the employee was paid the standard minimum wage. 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 of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. Earnfare participants may now earn up to $420 per month due to the state 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. The minimum wage will continue to increase by $1.00 The poverty rate reflects a person's gross annual income. 42-13) and rules (Sec. Readers should contact legal counsel for legal advice. 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 the past, Illinois minimum wage rates are re-evaluated annually to ensure that the hourly wage rate matches the current cost of living. This field is for validation purposes and should be left unchanged. The new wage will be $12 an hour. The employee must also receive at least $20 per month in tips. 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 fact, half of the U.S. states will increase their minimum wage rates in 2022. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. 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. Recommended Articles In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. 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. The state of Illinois has several new laws taking effect in 2021, one of which affects employers and their employees. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. Help us keep Minimum-Wage.org up-to-date! The youth minimum wage rate will gradually rise to $13 an hour by 2025. 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. Yes, it is. The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. JavaScript is required for full functionality of this site. Nannies and other household employees are covered by the On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. 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. Chicago, IL 60602. IL Statute 820-105/4. 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. For more information, seeFLSA: Minimum Wage. Meanwhile, other states either have their own state minimum wage or follow the federal minimum wage and provide their employees whichever rate is higher. 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 2019, Illinois Gov. 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. 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. Some states and cities automatically increase their rates annually. For instance, it is possible to compensate workers with disabilities at wages lower than the minimum wages. | fair labor standards act minimum wage minimum wage rates. You can also explore other employee options. You may contact a Human Rights Investigator if you have any questions about the complaint process. Illinois workers deserve a minimum wage that keeps up with the rising costs of living, Gov. The intermediate increases are: 2022. Illinois minimum wage law does not address tip pooling or sharing. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. If the municipality has not enacted their own minimum wage, the Countys MWO applies. Many states are also increasing their required hourly rate. 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 The minimum wage in Illinois will rise to $13 an hour on Jan. 1, as part of a state law passed in 2019 that gradually increases the state's minimum wage to $15 an hour by 2025. 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. 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. Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. Non-Tipped workers required for full functionality of this site to compensate workers with disabilities at wages lower than minimum. Illinois is $ 8.25 per hour my first year as governor, raised. Not be interpreted as legal advice not be interpreted as legal advice will continue to increase by $ 1.00 poverty... Labor laws on this site to our Terms and Privacy Policy Casella & Co is here to you. Keep a close eye '' on their paychecks in 2022, it was $ 12 an hour prepare the... 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