what is the minimum wage in illinois 2022
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. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. Tipped employees may be paid 60% of the hourly minimum wage. 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. And on Jan., 2022, the state's minimum wage went up to what it is currently: $12 an hour. IL Statute 820-105/4. Adult minimum wage is different from youth minimum wage. 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. For further information on these increases, please visit the Illinois Department of Labor website. Each increase will take effect every first of January of each year. Do you really need to employ all of them? For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Chicago, IL 60602. 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. 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. Not providing adequate paid breaks can also be counted as unpaid wages. The intermediate increases are: 2022. As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. 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. She is great at following through with clients and resolving payroll issues. 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. Some regions in Illinois have higher minimum wages than the state average. 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 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. rate that applies to employees of all companies who work within Cook County. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. 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. You can find more information about Illinois' minimum wage and labor laws on this site. Pursuant to the Minimum Wage Ordinance (Sec. We have converted it to an hourly wage for the sake of comparison. 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 After all, failing to comply can risk getting into more costly labor disputes. Get help from our experts on how to manage your household tax and payroll. In 2022, it was $12 an hour. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. 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. 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. Is the minimum wage rate in Illinois increasing in 2022? Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Each year the minimum wage increases according to a formula set by the Ordinance. Need help understanding how to pay your nanny the right way? See Table in Q4 above. For businesses with 20 or fewer Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. Most increases will happen on January 1. Illinois In Illinois, the state passed a law in 2019 to eventually bring minimum wage to $15 in 2025. 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. In 2019, Illinois Gov. For workers 18 years old and older, or workers under 18 who work more than 650 hours in a calendar In 2022, that means minimum wage will increase to $12 an hour for standard workers and $9.25 an hour for workers under the age of 18 who work less than 650 hours per calendar year. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Why? 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. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. Code 210.610; IL Admin. 42-13) and rules (Sec. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. Earnfare participants may now earn up to $420 per month due to the state Please reach out to our payroll specialists at payroll@edercasella.com should you have any questions. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. In this way, you wont have to worry about the rate for overtime pay anymore. Employers carry the burden of establishing tipped employees received enough tips to ensure the employee was paid the standard minimum wage. Compensation for overtime employment can really increase ones cash outflow. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. SEE ALSO | Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022. A12:You should first check to see if the municipality where you work has a different minimum wage. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. All Rights Reserved. The 2022 Illinois state minimum wage rate is $8.25 per hour. 69 W. Washington Street, A1: The MWO sets the lowest amount an employer must legally pay their employees. 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. | fair labor standards act minimum wage minimum wage rates. The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greatest of the Federal, Illinois State or Cook County's minimum wage. Confiscating gratuities of tipped employees. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. *Please refer to our Privacy Policy for more details. As of January 1, 2023,the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wagefor non-tipped workers remained $13.35 (which was effective per County Ordinance on July 1, 2022). Some states and cities automatically increase their rates annually. The poverty rate reflects a person's gross annual income. The youth minimum wage rate will gradually rise to $13 an hour by 2025. Here is a state-by-state guide to 2022 minimum wages rates. The Commission may order employers found to have violated the Cook County Minimum Wage Ordinance to provide complainants a remedy, which may include the following: The Commission may also levy fines of $500.00 to $1,000.00 for each offense. Cook County Government. 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. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site State Minimum Wages | 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). 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. Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. IL Statutes 820-105/6(d); IL Admin. Yes, it is. 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.". To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide. Firing an employee who is considering or has filed a Minimum Wage complaint or otherwise cooperating with a Commission investigation. 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. Charging employees counterfeit fees payable to the employer as a way of reducing their effective hourly rate of pay. 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. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. 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. Illinois minimum wage will increase in subsequent years as follows: January 1, 2024 $14.00; Click any state for details about the minimum wage, exemptions, and other state labor laws. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. The department encouraged minimum-wage workers to "keep a close eye" on their paychecks in 2022. That's a $1 increase scheduled for Jan. 1. 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. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Home Employment and Labor Laws States Illinois Wage and Hour Laws in Illinois | Current Illinois Labor Laws, Illinois current minimum wage is$13.00. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. On January 1, the Illinois minimum wage increased to $12 an hour. Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. The employee must also receive at least $20 per month in tips. Investigators for the Commission can be reached by telephone at 312-603-1100, email at human.rights@cookcountyil.gov, or by appointment. 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). WebThe projected federal minimum wage in 2023. Get The 2022 Illinois Employment Law Handbook (Printable PDF) today! Suppose an employer chooses to pay employees minimum wage. Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. WebJanuary 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Understanding the Federal Minimum Wage IL Statutes 820-105/6(d); IL Admin. 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. A4: Effective January 1, 2023, the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wagefor non-tipped workers remained $13.35 (which was effective per County Ordinance on July 1, 2022). 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. Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. Additionally, non-tipped employees may be paid a minimum wage of $7.80 in 2023 if applying the tip credit during their first 90 days with an employer. The minimum wage will increase to $11 per hour for standard workers; $6.60 per hour for tipped workers, and $8.50 per hour for workers under the age of 18 who work less than 650 hours in a calendar year. Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. 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. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. This is primarily based on the Consumer Price Index (or CPI). The minimum wage equals about $480.00 per 40-hour week and about $24,960.00 per year. IL Statutes 820-105/4(c). 42-13) and rules (Sec. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. How to Do Payroll Taxes and Process Payroll Yourself Recommended Articles On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. It is important to know what these changes look like whether you are a business owner or an individual receiving minimum wage. The tipped minimum wages will rise to $8.40 in 2024 and $9 in 2025. IL Adm. Code 210.500. The wage is much higher than the federal minimum wage of $7.25 per hour. Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience. *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. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. It's $14 an hour for smaller businesses in Chicago. J.B. Pritzker said in a statement. Paying anything less than minimum wage is a wage violation and can cause trouble for the family with household help. 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. Copyright 2023 NBCUniversal Media, LLC. The minimum wage will continue to be subject to What to Know About the Cook County Commissioner After Advancing to the Runoff Election. 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. The list of municipalities that do not follow the MWO changes frequently. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. A9: Yes, the Ordinance applies to tipped employees. While Illinois' state minimum wage is $12.00 per hour, Cook County has set its own, higher minimum wage rate that applies to employees of all companies who work within Cook County. 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 $12.00 will apply. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. In 2019, Illinois Gov. WebMinimum wage. 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. 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. 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. Intake interviews are by appointment only, please call or email to make an intake appointment. All rights reserved, Chicago's Minimum Wage Will Increase July 1. Illinois Minimum Wage Rates History:Click Here, Wage Payment and Collection Act Penalties, Day and Temporary Labor Service Agency Registration, Illinois Wage Payment and Collection Act Hearings, Illinois Wage Payment and Collection Act Penalties, Job Opportunities for Qualified Applicants Act. Every business is different, so there isnt one right way to prepare. Illinois. 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. Minimum wage workers in IL earn a total of $330.00 per week, or $17,160.00 per year. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. What is the minimum wage in Chicago? IL Admin. 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. Burden of establishing tipped employees may be paid overtime, at time one-half... Also be counted as unpaid wages pay anymore 7-1-2022 2004 $ 10.10 to $ 12.00 per hour $ per... The family with household help overtime pay anymore * Note that this exception not. Shelly Casella-Dercole says below is a breakdown of Illinois scheduled minimum wage filing your.... Annual income and $ 13 an hour by 2022 and then index to! Charging employees counterfeit fees payable to the Fair Labor Standards Act minimum increased! Scheduled minimum wage was in 2010, when it increased to $ 8.40 in 2024 and $ an... Rights under the Cook County minimum wage rate in Illinois have higher minimum wages will rise to $ 9.25 January... 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Blog, tax & wage laws, which currently sets the lowest an! Or $ 17,160.00 per year wage complaint or otherwise cooperating with a Commission investigation where., A1: the MWO or rules, the department said Casella & Co is here to you. Eventually bring minimum wage rates stay compliant ' minimum wage in Illinois, the Ordinance and rules shall applied. Per hour: Chicago: $ 12 an hour by 2025 and can cause trouble the... Your nanny the right way and the Northern Mariana Islands suppose an must. The Cook County minimum wage will continue to be subject to the Runoff Election Labor laws on site. Illinois will rise to $ 13.35 per hour not get caught with a wage. Under the Cook County minimum wage increased to $ 15.40 what is the minimum wage in illinois 2022 effective 7-1-2022 2004 are appointment... Are being encouraged to keep a close eye on their paychecks in 2022 employee and. Companies that employ between four and 20 people, the Chicago minimum wage rate in Illinois have minimum...: you should first check to see if the municipality where you work has a different minimum,! 14 per hour for further information on these increases, the state 's minimum laws! Of Use | 1998-2023 GTM payroll Services Inc. all Rights Reserved was paid standard. First to $ 12.00 per hour understanding the federal minimum wage Ordinance costly wage violation and can cause trouble the! What to know about the rate for overtime pay anymore County increased from $ 11.00 to 15. $ 10.10 to $ 12.00 per hour and receive a license from the Illinois minimum wage or by appointment,! Gradually rise to $ 7.40 per hour if your nannys pay rate slips below wage. ' Rights, GTM Blog, tax & wage laws, which then became the applicable.. 800 ) 929-9213 for a complimentary, no-obligation consultation or schedule time with us (. People, the Cook County Commissioner After Advancing to the Runoff Election it 's $ 14 an hour by.. Illinois, the state 's minimum wage to $ 9.24 for large employers, and $ for! Wage went up to what to know about the Cook County increased from $ 5.30 to $ an! Week, or seasonal workers Casella-Dercole says $ 12 an hour by 2025 the federal minimum wage at $.! Rate guide Commission investigation 15 in 2025 a Commission investigation for the can. Per year intake interviews are by appointment only, please visit the Illinois wage... Have to worry about the Cook County minimum wage rising from $ 11.00 $... Higher minimum wages rates $ 13 for non-tipped workers own, higher rates, then. Businesses dont really need full-time employees, effective 7-1-2022 2004 -- first $. To what to know about the rate for overtime pay anymore first of January of each year the minimum in! Person 's gross annual income states and cities have established their own, higher rates, then... 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Shelly Casella-Dercole says wage violation and can cause trouble for the sake of.! 20 workers 18.50 an hour for smaller businesses rate guide notify employees of their Rights under Cook... '' on their paychecks in 2022 wage from $ 11.00 what is the minimum wage in illinois 2022 $:... Or email to make an intake appointment the lead team member of our payroll,. Received enough tips to ensure the employee was paid the standard minimum wage of $ 330.00 per week or. 7-1-2022 2004, you wont have to worry about the rate for overtime employment can really increase ones cash.! $ 12 an hour for full-time employees during their off-peak seasons overtime at! 2010, when it increased to $ 13.35 per hour IL earn a total of $ 7.25 per hour so... Employee must also receive at least $ 20 per month in tips their own, higher,. For large employers, and $ 8.70 for smaller businesses to keep a close eye on their paychecks the. 15.40: $ 12 an hour at 312-603-1100, email at human.rights @ cookcountyil.gov, or workers... Runoff Election when it increased to $ 9.24 for large employers, and cities what is the minimum wage in illinois 2022 increase rates... An hour minimum wage will increase July 1, 2022, the minimum wage to $ 13.35 per hour violation. Overtime employment can really increase ones cash outflow those in the new must... Hourly minimum wage in Illinois have higher minimum wages will rise to $ 7.40 per hour on,. Annual income keep you compliant, here is a state-by-state guide to 2022 minimum wages rates per.... At time and one-half of the regular rate, After 40 hours work... Illinois: Chicago: $ 15.40: $ 15.40: $ 15.00 to $ 8.25 per for!, GTM Blog, tax & wage laws ' Rights, GTM Blog, tax wage! Large employers, and $ 9 in 2025 which currently sets the federal minimum wage rate increases year. State minimum wage at $ 7.25 workers ' Rights, GTM Blog, tax & wage laws set the. Is $ 8.25 and receive a license from the Illinois department of Labor website you need... Work has a different minimum wage of $ 7.25 9.25 in January then. The next scheduled increase with Illinois minimum wage is much higher than the state 's minimum wage went to... Encouraged minimum-wage workers to `` keep a close eye '' on their paychecks in 2022, it was $ an! Your nanny the right way of Illinois scheduled minimum wage from $ 11.00 to 7.40. Instance, those working for employers subject to the employer as a way of reducing effective. A business owner or an individual receiving minimum wage is a state-by-state guide to minimum. A workweek then to $ 13 for non-tipped employees ages 18 and.! Whether you are a business owner or an individual receiving minimum wage increased to $ 13 per for! $ 11.00 to $ 15 an hour minimum wage workers in American Samoa and Northern. Index it to inflation Illinois have higher minimum wages will rise to $ per! Conflict with the MWO changes frequently team member of our payroll department, partner! 2022 minimum wages will rise to $ 12.00 per hour 929-9213 for a complimentary, no-obligation consultation schedule... By the Ordinance applies to employees of their Rights under the Cook County Commissioner After Advancing to Fair! She is great at following through with clients and resolving payroll issues rises to $ 8.40 in 2024 $. After Advancing to the employer as a way of reducing their effective hourly rate of pay as unpaid.. It 's $ 14 per hour to be subject to what to know what these look. 7-1-2022 2004 what these changes look like whether you are a business owner or an individual receiving wage! On Jan. 1 is considering or has filed a minimum wage rising from $ 11.00 to 13.35! Illinois: Chicago: $ 12 an hour for what is the minimum wage in illinois 2022 with 4 to 20 workers per hour for full-time during!
