Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. For more information, check out the Illinois Department of Labor and the Cook County Minimum Wage Ordinance. ABC 7s I-Team breaks down the numbers for you. endstream endobj 270 0 obj <>stream However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. 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. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. hb``e``fc```rb@@,&+MW(1`fbea9*C[$0qeY#![O j L^)P v30BT1 Our city's labor laws, including the minimum wage, are an important backbone of our city's economy and provide stability to working families. So she's looking forward to the increase. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. It will continue to increase every year, linked to the Consumer Price Index and capped at 2.5%. Copyright 2023 NBCUniversal Media, LLC. Fight for $15 protesters rally and chant "We're fired up, can't take it no more," in Chicago on April 14, 2016. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago's youth looking for summer employment opportunities. SeaTac: $19.06/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. 297 0 obj <>/Filter/FlateDecode/ID[<6E5AB61FA15CDA4C85BC0B8CF0E74592>]/Index[266 47]/Info 265 0 R/Length 139/Prev 159337/Root 267 0 R/Size 313/Type/XRef/W[1 3 1]>>stream Beginning July 1, 2022, employers in Chicago must post a Minimum Wage Notice and Fair Workweek Notice. The federal minimum wage rate was raised to $7.25/hour in 2009. The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. 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: With these new measures, the City is reaffirming its commitment to our talented workers and demonstrating why we are one of the nation's leaders in protecting workers' rights.". 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. Heres what you need to know. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. Fully updated for March 2017! Usage is subject to our Terms and Privacy Policy. Last updated June 7, 2022. All Domestic Workers must receive at least the $15.40 minimum wage. Chicago has been a leader in worker protections, and the upcoming changes reflect the Citys commitment to creating financial opportunity for all Chicagoans. Your email address will not be published. For tipped workers, the minimum wage shall be $9.24 per hours plus tips for employers with 21 or . Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. 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 $14.50 for smaller businesses. After all, theyre already paying their employees more than the states current minimum wage of $8.25 an hour, and they may struggle to compete with businesses in neighboring towns where wages are lower. 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. July 1,2022 Effective Date. If a tipped workers wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. In addition to Chicago, there are other localities in Illinois that have passed municipal minimum wage legislation. In Chicago, on July 1, 2022, the minimum wage 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 for medium-sized employers increased 50 cents this year. endstream endobj startxref Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. Chicago's current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with . Chicago's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. Deerfield-based Walgreens announced last year it would raise starting wages to $15 an hour for all workers by November of this year. Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense. By 2025, after increasing on schedules that vary by size and other factors, all businesses and workers in Chicago will have the same minimum wage citywide. In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. What is the minimum wage in Chicago? In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. 2019: $12. %PDF-1.6 % It's $14 . Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. CHICAGO (WLS) -- The minimum wage in Chicago and suburban Cook County increased Friday. hb```R ce`axpSIi~r[?; (J30X03g'w5$: 3g0`[!WX?q;l^ J`G[( H For businesses with 20 or fewer employees, the minimum wage is $14.50 an hour, with a tipped minimum wage of $8.70. %%EOF 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. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Earlier this year, Illinois amended its minimum wage law to gradually increase the minimum wage for Illinois employees to $15/hour by 2025. endstream endobj startxref You can find a list of highest and lowest minimum wage rates here . The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. In Chicago, enhancements to the Fair Workweek Ordinance take effect, which require employers in covered industries to post work schedules with at least 14 days' notice. According to state law, teenagers under the age of 18 must be paid at least Illinois' current youth minimum wage, which is $9.25. Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees. For instance, employees under the age of 18 must be paid $12 an hour. By this date, the notices must be posted in multiple languages. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. Contact. 0 Overtime pay equals time and a half of an employees regular pay rate. The OLS is dedicated to promoting and enforcing Chicagos labor laws, including Minimum Wage, Paid Sick Leave, Fair Workweek, and Wage Theft Ordinance. #{b,Ap)$B9(fpBKU RV0DX:]tkY#=m^ou`11: %?\N*H(UaAy.!Nj&iN}`fL'O!dFeM4'=/![bZTtY,|G1}u? Content 2023 Minimum-Wage.org, all rights reserved. The minimum wage, its just, its fair, it gives people a living wage, said Andy Fox, the director of Chicagos Office of Labor Standards. "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. %%EOF In 2021, after receiving 93 complaints regarding the minimum wage and paid sick leave violations, the OLS secured over $1,000,000 in restitution for Chicagos workers, as well as $236,595 in fines to the City. Starting July 1, the minimum wage for tipped employees will rise to $7.40. 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 citys ordinance also extends certain sexual harassment protections for workers. Nixle is increasing Chicagos minimum wage because we believe a fair days pay is part of our longstanding commitment to safety in the workplace. Copyright 2023 WLS-TV. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. The upcoming minimum wage increase and fair workweek changes align with Mayor Lightfoots Anti-Poverty Agenda which includes growing quality jobs, improving peoples income, building wealth, and closing racial health disparities. The ABC 7 I-Team found out who may and may not benefit, and breaks down the numbers in your paycheck. "Employers need to know that these wage increases are not optional. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster In 2022, they must make $9.25 per hour. If the tipped . Groups like the Fight for $15 have pushed for higher minimum wages for years. It is set to increase Jan. 1, 2023, to $13 and $7.80, respectively. All rights reserved, This Map Shows Exactly How the City of Chicago Voted for Mayor in the 2023 Election, Report: Jalen Carter Arrest Warrant Issued for Racing Car, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? 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. They must be paid at least $12 an hour. "We were the first city in the state to get to $15 and its going up today," she added. %PDF-1.6 % 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. 4. (Jose M. Osorio / Chicago Tribune). While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage }y>"e't:ikz1(ET&Mj^|M2FeI;oWym?RV:G\d~~QgqVpVx!nMr{:fBbZ[A >[m;!av$voedkubG|D,Wql1.DUYEj-xkI='aZ?]aoe!NvJR6l9c0'(!t,x|?N_{yuy#olII>]vd$Z#{gh?ECc+Rv-H Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. 183 0 obj <>stream (en Espaol) 2023 minimum wage announcement in 13 languages. The minimum wage for workers at companies with more than 20 employees increases to $15 per hour starting July 1 under an ordinance passed in November 2019. The citys minimum wage policies and exceptions can be complicated. For tipped workers, the rates will also increase -- to $9.24 for large employers and $8.70 for smaller businesses. The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. Businesses must have at least 50 employees who are eligible to be covered under the ordinance for the law to apply. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. In another change, employees will need to earn less than $29.35 per hour or $56,381.85 per year to gain protection under the Fair Workweek Ordinance. Until this year, the minimum wage for larger employers in Chicago increased $1 per year. What is minimum wage in Chicago 2022? New minimum wages in effect July 1 for Chicago, Cook County . Delawares minimum hourly wage will increase incrementally on January 1 of the next three years, to $11.75 in 2023, $13.25 in 2024, and $15.00 in 2025. rates that apply to employees of different classes of company who work Chicago. If the citys unemployment rate meets or exceeds 8.5% in a given year, there will be no minimum wage increase the next year. (MCMF) mobile app,which is aresource designed to help teens and young adultseasily find out-of-school programs, events, resources, jobs, and more. The city is raising its minimum wage every year, as mandated by law. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. But how much money could you get? Beginning on July 1, 2022, the minimum wage in Chicago will be: $15.40 per hour for Employers who have 21 or more Employees ($9.24 per hour for tipped Employees like restaurant servers). But July 1, that rate is set to increase, according to officials. {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D No: Yes: Companies with wage floors at $15 or higher include big employers like Target, Costco and Amazon. State Minimum Wages | She is reminding that employers must comply with the change. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. Vaccines protect you and the people around you, reducing the spread of COVID-19. 2020: $12.75. hmoH~lUM4^=jld;Uof $F@.Y In raising the minimum wage, the city continues to be a leader in advocating for equitable job opportunities to lift up residents in all of Chicago's 77 neighborhoods.". Ultimately, this will be a boon for low-income workers in Chicago. The increase, of 40 cents for workers at the citys large employers, comes at a time when many Chicagoans are struggling with the effects of sky-high inflation. 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 state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. 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. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. "That's a little more money you can buy groceries with," says Rosemary Coleman who is ready to see more money in her paycheck. The minimum wage as of July 1, 2022 will be: On July 1, 2022, scheduled enhancements to the Fair Workweek Ordinance will require employers in covered industries to post work schedules with at least 14 days notice, an increase from the previous 10 days notice. Employees need to earn less than $29.35 per-hour or $56,381 a year to gain the protection. Those smaller businesses will then continue to see minimum wage increase by 50 cents per year to reach $15 an hour by 2023. Vaccines protect you and the people around you, reducing the spread of COVID-19. This increase will hit most large employers in Chicago. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. Domestic workers like those in childcare and home health services must be paid at least $15.40 an hour, regardless of the size of the company. 2023 minimum wage announcement poster. By July 2022, Chicago businesses are required to post the new minimum wage notice in multiple languages. Beginning in 2022, the minimum wage in Chicago will increase each year at a rate tied to the consumer price index, capped at 2.5% annually. The citys minimum wage increases are laid out in its minimum wage ordinance. Details This page contains the Low Pay Commission's recommendations on the National Living Wage and National Minimum Wage rates which will apply from 1 April 2022. 126 0 obj <> endobj On Behalf of Billhorn Law Firm | Apr 24, 2022 | Wage & Hour Laws. Get an Illinois all-in-one labor law poster. Chicago's minimum wage is going up Thursday. uJ(\cZYy:8-_Sg8W8gjcAn~k_65c%M'6nr Z1?vc33D$(MTfJ/`\b9{iN&D!w5v2eO>(p_MO%~|sp^0C9d20eeR1=7{Z#*"ng5Z03,>,b[]/2.R7Bw1}#aXYk(Ri8s4T7io7. R wy8yM`?xioUrX/ !f "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. Chicago has a long, proud history of being allied with workers, both promoting and protecting their rights, said Mayor Lightfoot. Employers who violate the notices may face fines of $500 to $1,000 per day. See How All 50 Wards Voted in the 2023 Chicago Mayoral Election, All Eyes On a Strong' System That Could Hit Chicago Area Friday, But Much Uncertainty Remains, Who is Brandon Johnson? Even if you work outside of Chicago, you may be paying less than the minimum wage. Youths who work over 650 hours per year are entitled to the regular minimum wage. Learn more atLearn more at Chicago.gov/COVIDVax. BACP will host free informational webinars to prepare employers for the upcoming changes to Chicagos Labor Standards Laws. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Lightfoot said the move is a victory for working class employees who are the backbone of the city. What Is the Minimum Wage in Chicago? Chicago's minimum wage is going up Thursday. That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%. "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 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) $14.50 for employers with 4-20 employees Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. The new ordinance also requires employers to pay younger workers more than the minimum wage. 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. Read more: Does Marshalls Take Apple Pay? The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. It depends on what you do and how many employees there are at your company. Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. You have probably asked yourself this question before. as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market. Chicago minimum wage will increase by 40 cents to $15 per hour. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. State Minimum Wage Rates 2022 vs. 2023. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July. Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. 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. 2021: $13.50. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. For Large Employers (501 or more employees) $17.27/hour: For Small Employers (500 or fewer employees) Does employer pay $1.52/hour toward medical benefits and/or does employee earn $1.52/hour in tips? This year, the Consumer Price Index exceeded this cap and the minimum wage was frozen. In Chicago, on July 1, 2022, the minimum wage 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. Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme. Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. Several factors influence the minimum wage in Chicago, including the economy and the number of jobs available. Chicago minimum wage in 2022 will be $14 or $15, depending on the number of employees and the size of the business. How That Could Change, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? 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\ Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. , we are continuing our commitment to provide working families sustainable wages and work schedule..... Requires employers to pay younger workers more than 8.5 %, the minimum wage is for! 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