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. *Please refer to our Privacy Policy for more details. 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. Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. IL Statutes 820-105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. 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. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. Any time worked in 2022 must reflect the new She is also excellent at adapting to various client accounting systems to get payroll done on the clients system rather than ours., To provide you with the best experience, this website uses cookies and third party services. 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. All employers in Illinois are required to post the "Your Rights Under Illinois Employment Laws" poster in the workplace where notices to employees are regularly posted. 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. 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. Let us know in a single click, and we'll fix it as soon as possible. IL Admin. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. 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. We think businesses are as unique as the people who run them. Want to learn more? The minimum wage will continue to increase by $1.00 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. 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. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour A10: The MWO does not apply to independent contractors. Posted 3 days ago. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. 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 On January 1, the Illinois minimum wage increased to $12 an hour. Unpaid overtime compensation can lead to an employer paying costly legal damages until the amount is duly paid according to the wage claim. Since that legislation was signed, there have been four increases in the minimum wage. The weekly Household Employer Digest delivered to your inbox. IL Statutes 820-105/6(d); IL Admin. 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. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. 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. 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. Read our, Illinois Employers Owe Federal Unemployment Tax. And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. Get individualized content on the topics you care about most by telling us a little more about yourself. 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. 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. The new wage will be $12 an hour. Code 210.110; IL Admin. rate that applies to employees of all companies who work within Cook County. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference. 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. 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. A12:You should first check to see if the municipality where you work has a different minimum wage. You may contact a Human Rights Investigator if you have any questions about the complaint process. Save time! Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. 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). J.B. Pritzker signed legislation into law providing a path to increase Illinois' minimum wage rate to $15 per hour and $9 for tipped workers by 2025. 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. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. Chicago, IL 60602. 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. It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. This is primarily based on the Consumer Price Index (or CPI). 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. Under the bill, workers under 18 years old and who work fewer than 650 hours in a year will earn a minimum wage of $9.25 per hour beginning Jan. 1, the department said. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. 69 W. Washington Street, 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. These rates are effective on January 1, 2022, unless otherwise noted. What is the new 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. In 2022, it was $12 an hour. Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. 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. Pursuant to the Minimum Wage Ordinance (Sec. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. 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. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. 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 If the municipality has not enacted their own minimum wage, the Countys MWO applies. 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. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. The state is on a regular increase schedule, going up $1 each year on Jan. 1. You can also explore other employee options. Minimum wage workers in IL earn a total of $330.00 per week, or $17,160.00 per year. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. In most instances in Illinois, the Illinois minimum wages will apply as it generally guarantees a higher wage rate for employees than federal law. 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. Illinois minimum wage law does not address tip pooling or sharing. There are exceptions to the categories of employees covered by the Ordinance. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. For further information on these increases, please visit the Illinois Department of Labor website. Yes, it is. Get an Illinois all-in-one labor law poster. WebThe projected federal minimum wage in 2023. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. How can employers in Illinois better meet the rising minimum wage standard. Student learners are individuals who receive course credit for participating in school-approved work-study programs. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. You can find more information about Illinois' minimum wage and labor laws on this site. In addition to Cook County, there are other localities in Illinois that have passed municipal minimum wage legislation. Workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour beginning January 1. If this gradual minimum wage increase continues, Illinois will become the first state to enjoy a $15 minimum wage rate. Maryland Maryland was another state that passed a 2019 law to move toward a $15 Every business is different, so there isnt one right way to prepare. This site is a free public service not affiliated with the Department of Labor or any governmental organization. Nannies and other household employees are covered by the Code 210.620, Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. All Rights Reserved. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. 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. Is any of our data outdated or broken? For businesses with 20 or fewer Contact. Illinois standard minimum wage is $13, effective Jan. 1, 2023. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. A7: No, if a municipality has passed their own minimum wage (like the City of Chicago) then the municipality's minimum wage applies to employers located within or doing business in the municipality. 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. The intermediate increases are: 2022. 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.. A1: The MWO sets the lowest amount an employer must legally pay their employees. Adult minimum wage is different from youth minimum wage. WebThe minimum wage in Illinois is $12.00 per hour. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. Recommended Articles A9: Yes, the Ordinance applies to tipped employees. 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.". 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). On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. You can find a list of highest and lowest minimum wage rates here . Illinois current minimum wage is $13.00. The same applies to younger employees as employers can pay a subminimum wage to learners within set periods of time set aside for adequate training. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster Click any state for details about the minimum wage, exemptions, and other state labor laws. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. The minimum wage in Illinois just went up -- again. 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). In fact, half of the U.S. states will increase their minimum wage rates in 2022. 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. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. 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. Paying anything less than minimum wage is a wage violation and can cause trouble for the family with household help. IL Statutes 820-105/6(d); IL Admin. | fair labor standards act minimum wage minimum wage rates. There have been three increases in the minimum wage since Pritzker signed that legislation. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. 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, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). IL Admin. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. Complaint forms and additional information can be found online. Withhold and remit state and Federal taxes, and cities have established their own higher! Rate, which then became the applicable rate is 8.5 % or greater authorized Public!, 2022, triggers the next scheduled increase with Illinois minimum wage is from! By Public Act 101-1 different minimum wage rates in 2022, the minimum wage after receiving tips, the! Act 101-1 more employees & Co is here to guide you through these,! One-Half of the regular minimum wage rates, such as the `` waitress! 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