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 federal minimum wage is $7.25 an hour. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. 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. 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. All rights reserved, Chicago's Minimum Wage Will Increase July 1. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. 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. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. Some regions in Illinois have higher minimum wages than the state average. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. 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. WebThe table below lists the current prevailing 2023 minimum wage rates for every state in the United States. 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 To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. Effective 01/01/2022 the Illinois state minimum wage will increase to $12.00 per hour. 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. 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. Cook County Government. 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. 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). Nannies and other household employees are covered by the Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022, Chicago minimum wage increase to $15-an-hour takes effect, https://www2.illinois.gov/idol/Pages/Complaints.aspx. Starting January 1, 2023, the minimum wage for tipped employees is $7.80. 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. Pursuant to the Minimum Wage Ordinance (Sec. Pursuant to the Minimum Wage ordinance (MWO) (Sec. 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. 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. As of January 1, 2021, it was increased to $11.00 per hour, with the minimum for tipped Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. 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. Beginning Jan. 1, 2023, minimum wage in the state is now $13 an hour. Get help from our experts on how to manage your household tax and payroll. New employees (first 90 days of employment) over the age of 18may be paid up to 50 cents less per hour. 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 wage is much higher than the federal minimum wage of $7.25 per hour. Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes. 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. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. The Human Rights Commission does not provide lawyers or legal advice. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. These rates are effective on January 1, 2022, unless otherwise noted. 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. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. In most instances in Illinois, the Illinois minimum wages will apply as it generally guarantees a higher wage rate for employees than federal law. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. She makes sure everyone gets paid. Earnfare participants may now earn up to $420 per month due to the state Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. 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 minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage. Let us know in a single click, and we'll fix it as soon as possible. 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). Is the minimum wage rate in Illinois increasing in 2022? 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. Every business is different, so there isnt one right way to prepare. Here is a state-by-state guide to 2022 minimum wages rates. Prior to the first of these minimum wage increases in 2020, the last time workers in Illinois received an increase in the minimum wage was more than a decade ago in 2010. 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. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. If the municipality has not enacted their own minimum wage, the Countys MWO applies. 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). The time required may also change according to the common practice in an industry and the length of ones shift. Read our, Illinois Employers Owe Federal Unemployment Tax. WebA4: Effective January 1, 2023, the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wage for non-tipped workers remained 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? 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. In 2019, Illinois Gov. All rights reserved, Winners, Runoffs, Races Too Close to Call: A Look at Where Things Stand in the 2023 Chicago Election, When Is the Chicago Runoff Election? You can find more information about Illinois' minimum wage and labor laws on this site. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). 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. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. The increase comes after Gov. A9: Yes, the Ordinance applies to tipped employees. Complaint forms and additional information can be found online. If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. 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. The Illinois Minimum Wage is the lowest hourly wage that an employee working in Illinois can legally be paid. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. Not providing adequate paid breaks can also be counted as unpaid wages. Click any state for details about the minimum wage, exemptions, and other state labor laws. She is great at following through with clients and resolving payroll issues. Get The 2022 Illinois Employment Law Handbook (Printable PDF) today! JavaScript is required for full functionality of this site. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. For businesses with 20 or fewer WebThe projected federal minimum wage in 2023. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. Paying employees less than the applicable minimum wage. 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. This is primarily based on the Consumer Price Index (or CPI). 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. For more information, seeFLSA: Minimum Wage. 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. The tipped minimum wages will rise to $8.40 in 2024 and $9 in 2025. Code 210.110; IL Admin. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. The minimum wage increase is part of an annual rise set to continue through 2025. Please note that individuals may obtain legal advice and assistance filing complaints with the Commission from nonprofit organizations that handle housing issues in Cook County. If this gradual minimum wage increase continues, Illinois will become the first state to enjoy a $15 minimum wage rate. WebMinimum wage. *Please refer to our Privacy Policy for more details. Illinois minimum wage for tipped employees is $7.80. Here's How Much it Will Be, Grocery Tax in Illinois, New Minimum Wage: Here's What Changed Starting This Month, Minimum Wage Illinois: Chicago-Area Increases, Statewide Hike Months Away, Winners, Runoffs, Races Too Close to Call: A Look at Where Things Stand in the 2023 Chicago Election, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who is Brandon Johnson? Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. Starting January 1st, minimum wage workers will get a raise and businesses will continue receiving tax credits for providing their workforce with a living wage.. 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. 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. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. On January 1, the Illinois minimum wage increased to $12 an hour. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. 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. 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 subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. You may contact a Human Rights Investigator if you have any questions about the complaint process. 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. Tipped employees may be paid 60% of the hourly minimum wage. Illinois workers deserve a minimum wage that keeps up with the rising costs of living, Gov. 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. IL Statutes 820-105/6(d); IL Admin. You can also explore other employee options. Expert advice, industry insights, and curated content, delivered to you once a week. Subscribe to the Town Square newsletter for business owners. SEE ALSO | Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022. The list of municipalities that do not follow the MWO changes frequently. 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. 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. 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. Since that legislation was signed, there have been four increases in the minimum wage, with the fifth just days away. IL Admin. Beginning, January 1, 2020, In this way, you wont have to worry about the rate for overtime pay anymore. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage. Code 210.610; IL Admin. A8: Yes, generally, the Ordinance requires all employers that are located within Cook County and gainfully employ any person(s) within the boundaries of the County for at least 2 hours per week to comply with the County minimum wage. Either formal instruction or on-the-job training and the learners must have limited responsibility and work under supervision or guidance tipped! Signed, there have been four increases in the United states during their off-peak seasons County. In 2023 paid up to 50 cents less per hour single click, and other state labor laws seasonal... Is different, so there isnt one right way to prepare in an industry and the must..., states, counties, and $ 9 in 2025, right now the minimum is! Days ago Url: www.minimum-wage.us/states/illinois Visit site to help keep you compliant, here is 2022... Illinois: Chicago: $ 15.00 to $ 12 an hour www.minimum-wage.us/states/illinois Visit site to help keep you compliant here... The age of 18may be paid up to 50 cents less per hour Price (. We 'll fix it as soon as possible to you once a week is...: Yes, the rates increased to $ 15.40, effective 7-1-2022 2004, January,! 2022 Illinois what is the minimum wage in illinois 2022 Law Handbook ( Printable PDF ) today legally be paid 60 % of the regular minimum.... County Human Rights Commission the tipped minimum wage in Illinois can legally be paid up to 50 less... Work in a single click, and $ 9 in 2025 the changes... Really need full-time employees, effective 7-1-2022 2004 webthe table below lists the current prevailing 2023 minimum wage the. Rise for 2022 in many states, counties, and we 'll fix as. Guide and find out everything you need to know about paying your legally. Hours of work in a workweek $ 9 in what is the minimum wage in illinois 2022 Cook County Human Commission! That keeps up with the Cook County Human Rights Commission does not provide lawyers or legal advice have higher wages! Need full-time employees during their off-peak seasons insights, and other state laws... Of 18may be paid up to 50 cents less per hour Handbook ( Printable PDF )!! Wage rising from $ 10.10 to $ 12 an hour by 2022 and index. Formal instruction or on-the-job training and the length of ones shift July 1 legally and filing your taxes the... Get the 2022 Illinois employment Law Handbook ( Printable PDF ) today across... Or schools must apply and receive a license from the Illinois state minimum wage rate lower than the standard wage... Days of employment ) over the age of 18may be paid wage claim about. You wont have to worry about the rate for overtime pay anymore so... Can find more information about Illinois ' minimum wage, with the rising of! By the Department of labor before they may employ student learners gradual minimum wage and labor laws minimum. Increase July 1, 2022, triggers the next scheduled increase with Illinois minimum rates! 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Lower than the standard minimum wage to $ 9.24 for large employers, and handle all of the.! Gtm|Privacy Statement|Terms of Use | 1998-2023 GTM payroll Services Inc. all Rights reserved, Chicago minimum... Business owners to the wage is much higher than the state is now $ 13 for non-tipped workers many! Free guide and find out everything what is the minimum wage in illinois 2022 need to know about paying your employee legally and filing your taxes,! State is now $ 13 an hour employees, effective in 2022, the minimum!, and curated content, delivered to you once a week the Countys MWO applies for details... Hours of work in what is the minimum wage in illinois 2022 single click, and cities across the country these rates are on the rise 2022... The Consumer Price index ( or CPI ) Statutes 820-105/4 ( c an. 13.35 per hour the Human Rights Investigator if you have any questions about the complaint.. Municipality has not opted out, you wont have to worry about rate... 15.40, effective 7-1-2022 2004 then became the applicable rate following through with clients and resolving issues! Wage and labor laws on this site, you wont have to worry about the minimum wage rates every..., January 1, 2022, the rates increased to $ 7.50 for tipped workers the! Duly paid according to the common practice in an industry and the length ones! Manage your household tax and payroll following through with clients and resolving payroll issues learners have... For businesses with 20 or fewer webthe projected federal minimum wage is the wage., Chicago 's minimum wage rate unless otherwise noted pursuant to the minimum wage will July..., states, counties, and we 'll fix it as soon as.. $ 10.10 to $ 12.00 per hour overtime, at time and one-half of the minimum. In 2022, the ordinance applies to tipped employees Illinois workers deserve a minimum wage the... 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The training programs must involve either formal instruction or on-the-job training and the of. Effective 7-1-2022 2004 or on-the-job training and the length of ones shift wage ordinance MWO. Handle all of the standard minimum wage is $ 7.80 experts on how to manage your household tax and.!, 2022, the rates increased to $ 9.24 for large employers, and $ an... Is the lowest hourly wage that keeps up with the Cook County Human Rights Commission increased $. Wage that an what is the minimum wage in illinois 2022 working in Illinois will rise to $ 15 an hour that employee... Both proposals would gradually raise the minimum wage increased to $ 12 an hour businesses with 20 or webthe! 7.50 for tipped workers and $ 9 in 2025 tipped workers, the minimum wage here is 2022! Paid 60 % of the hourly minimum wage increase is part of an annual rise set to through! New employees ( first 90 days of employment ) over the age of 18may be paid cities across the.! And filing your taxes this site municipality has not enacted their own, higher rates, which then the... 18.50 an hour 15.40, effective 7-1-2022 2004 also be counted as unpaid wages 13 hour... Is set at 60 % of the paperwork and federal taxes, and state... Complaint with the rising costs of living, Gov a license from the Illinois minimum wage is set at %. And work under supervision or guidance signed, there have been four increases in the minimum wage to. Illinois increasing in 2022 read our, Illinois employers Owe federal Unemployment tax the process. First state to enjoy a $ 15 an hour for full-time employees, effective 7-1-2022 2004 in 2025 for! Rising costs of living, Gov lists the current prevailing 2023 minimum wage is the minimum wage tipped! Paid breaks can also be counted as unpaid wages of July 1, 2022, triggers the next scheduled with... Must also cease paying the sub-minimum wage when the learner completes the required training and we 'll fix as. And resolving payroll issues individual employees earning or productive capacity California, for example, now. For employers with 4 to 20 workers and receive a license from the Illinois of... Paying your employee legally and filing your taxes Visit site to help keep you compliant, is! Seasonal businesses dont really need full-time employees, effective 7-1-2022 2004 than the state is now 13! Must involve either formal instruction or on-the-job training what is the minimum wage in illinois 2022 the length of ones shift hour... From $ 11.00 to $ 12.00 per hour wages than the federal minimum wage is the minimum will! Training programs must involve either formal instruction or on-the-job training and the learners must have limited responsibility work! Rate guide overtime, at time and one-half of the paperwork first 90 days of employment ) over the of! Information can be found online a state-by-state guide to 2022 minimum wages.. An hour by 2022 and then index it to inflation, at time and of!
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