In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. Click any state for details about the minimum wage, exemptions, and other state labor laws. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. To learn about Chicagos labor laws, visitChicago.gov/LaborStandards. So she's looking forward to the increase. 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.". hmoH~lUM4^=jld;Uof $F@.Y #{b,Ap)$B9(fpBKU RV0DX:]tkY#=m^ou`11: %?\N*H(UaAy.!Nj&iN}`fL'O!dFeM4'=/![bZTtY,|G1}u? The citys minimum wage policies and exceptions can be complicated. Read more: Does Marshalls Take Apple Pay? The minimum wage for medium-sized employers increased 50 cents this year. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago's youth looking for summer employment opportunities. Chicago minimum wage is tiedred, meaning that businesses with 21 or more employees must pay more than businesses with four to 20 employees. 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. The $15 per hour minimum wage starting in Chicago on Thursday makes it the highest minimum wage in Illinois currently - though the state will eventually reach $15 an hour as well. The minimum wage for workers under-18 in Illinois who work less than 650 hours in a calendar year is $8.50. 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. Copyright 2023 WLS-TV. 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 Chicago. Vaccines protect you and the people around you, reducing the spread of COVID-19. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. Also as part of Chicago's Sexual Harassment Laws, all employers in Chicago are required to have a written policy on sexual harassment, display a public notice advising of the prohibition on sexual harassment where employees can see, and conduct annual training. What will your paycheck look like? In Illinois, tipped employees may make $7.20 per hour in 2022. For tipped workers, the minimum wage shall be $9.24 per hours plus tips for employers with 21 or . would raise starting wages to $15 an hour for all workers. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. Chicago's current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with . hb```R ce`axpSIi~r[?; (J30X03g'w5$: 3g0`[!WX?q;l^ J`G[( H Chicago has been a leader in worker protections, and the upcoming changes reflect the Citys commitment to creating financial opportunity for all Chicagoans. You can find a list of highest and lowest minimum wage rates here . And. In the coming years, those rates will continue to increase. 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. For businesses. Industries covered by the ordinance are health care, hotels, restaurants, retail, warehouses, manufacturing and building services. Employers should consider updating their minimum wage posters to reflect the new rates. Some local jurisdictions have higher minimum wage rates and different labor rules than Washington state. By this date, the notices must be posted in multiple languages. The new ordinance also requires employers to pay younger workers more than the minimum wage. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL These recommendations. 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. The average Illinoisan has seen wages cut by $2,200 in the past decade, while inflation has increased by 10 percent (according to the Bureau of Labor Statistics). This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. This year, the Consumer Price Index exceeded this cap and the minimum wage was frozen. 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. Those smaller businesses will then continue to see minimum wage increase by 50 cents per year to reach $15 an hour by 2023. Another exception is for young employees those 24 or younger of religious corporations or organizations. 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. "That's a little more money you can buy groceries with," says Rosemary Coleman who is ready to see more money in her paycheck. 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. 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. 2020: $12.75. Our previous post Alaska Minimum Wage 2023 (right information) We recommend that you also read our article titled. 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. The ABC 7 I-Team found out who may and may not benefit, and breaks down the numbers in your paycheck. If they're tipped employees, you only have to pay 60% of that ($6.60 per hour), but only if you apply a tip credit for up to 40% of the current minimum wage. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. Faced with the challenges of providing for families, paying rent, buying groceries and fighting the rising costs of gasoline, low wage workers are able to earn a living wage with the increases to the Chicago minimum wage and the lengthening of the Fair Workweek notice requirement this year, said Andy Fox, Director of the Office of Labor Standards. The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. 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 $14.50 for smaller businesses. Our city's labor laws, including the minimum wage, are an important backbone of our city's economy and provide stability to working families. uJ(\cZYy:8-_Sg8W8gjcAn~k_65c%M'6nr Z1?vc33D$(MTfJ/`\b9{iN&D!w5v2eO>(p_MO%~|sp^0C9d20eeR1=7{Z#*"ng5Z03,>,b[]/2.R7Bw1}#aXYk(Ri8s4T7io7. R wy8yM`?xioUrX/ !f The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. 9 The minimum wage for employees under the age of 20 is $4.25 per hour for the first 90 days of employment, and after this, they are eligible for their Chicago minimum wage rate. Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. ABC 7s I-Team breaks down the numbers for you. SeaTac: $19.06/hr. Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. Resolved Investigations:Resolved Investigations 2021Resolved Investigations 2022, ComplaintFile a Complaint by calling 311, using CHI 311, or by filling out a Complaint Form.ARCHIVE UNA DEMANDA / SKADANIE ZAALE / / MAGHAIN NG REKLAMO / Notice, Download Notice: MINIMUM WAGESALARIO MNIMO / PACA MINIMALNA / / MINIMUM NA SAHOD / , Mailing ListIf you wish to be added to our mailing list for the Office of Labor Standards updates, announcement and notices, please email us at bacplaborstandards@cityofchicago.orgOther ResourcesPaid Sick Leave Ordinance Information Fair Workweek Ordinance InformationAnti-Retaliation Ordinance InformationVaccine Anti-Retaliation Ordinance InformationOffice of Labor Standards, Empowering Businesses and Protecting Consumers, An official website of the City of Chicago, Permit for Business ID and Advertising Signs, Vital Records from the Cook County Clerk's Office, AIC (Annual Inspection Certification) Inspections, Economic Disclosure, Affidavit, Online EDS, City Council Office of Financial Analysis, Community Commission for Public Safety & Accountability, Schedule an Appointment with a Business Consultant, Neighborhood Business Development Center (NBDC), Vaccine Anti-Retaliation Ordinance Information. They plan to pay even more at all three of her locations to stay competitive and keep workers. Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. rates that apply to employees of different classes of company who work Chicago. That means that even though inflation hit 8.6% in May, Jalen Carter, a top NFL draft prospect, charged with reckless driving and racing in fatal accident in Georgia, Greek transport minister resigns after head-on train crash kills at least 36, Southtowners: Evergreen Park art students win, Lemont successful at state, and more, Do Not Sell/Share My Personal Information. How That Could Change, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? What to Know About the Cook County Commissioner After Advancing to the Runoff Election. What Is the Minimum Wage in Chicago? Read more: Does Marshalls Take Apple Pay? 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? In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. The webinar, Employer Responsibilities Under Chicagos Minimum Wage Ordinance, will take place Tuesday, June 7, at 2:00 p.m. Additionally, the webinar, Employer Responsibilities Under Chicagos Fair Workweek Ordinance, will take place Thursday, June 9, at 2:00 p.m. To register for thewebinars, visitChicago.gov/BusinessEducation. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. Fight for $15 protesters rally and chant "We're fired up, can't take it no more," in Chicago on April 14, 2016. Learn more atLearn more at Chicago.gov/COVIDVax. Copyright 2023 NBCUniversal Media, LLC. 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. If the tipped . The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. State Minimum Wages | In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. But July 1, that rate is set to increase, according to officials. endstream endobj 271 0 obj <>stream In Chicago, this means a fifty-cent increase for employees. endstream endobj 127 0 obj <. And. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. %%EOF 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD To file a labor standards complaint, workers can use the CHI 311 system (call 3-1-1, use the CHI311 mobile app, or visit311.chicago.gov) or complete aComplaint Form. Anyone age 24 or younger employed by, or engaged in employment coordinated by a nonprofit organization or government agency will see a minimum wage increase to $12.00 on July 1, 2022. Overtime pay equals time and a half of an employees regular pay rate. All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. She is reminding that employers must comply with the change. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. The ordinance also sets a cap of 2.5% on annual increases, so the minimum wage in Chicago cant go above that. Unfortunately, the Consumer Price Index this year exceeded that, Fox said. 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.". Starting Friday, the umbrella of workers covered under the ordinance will expand and employers will be required to give those employees a few days additional notice of their schedules. Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. Ultimately, this will be a boon for low-income workers in Chicago. endstream endobj 270 0 obj <>stream 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. Learn more atLearn more at Chicago.gov/COVIDVax. Eligible youth can find qualifying opportunities by downloading the My CHI. View Sitemap. f you want to learn about Arkansas minimum wage, you can click on it. Under Illinois law, the minimum wage for workers aged 18 and over is $11.00 per hour as of January 2021. However, Chicagos minimum wage will rise to $15 per hour in 2022, and its expected that the increase will continue to rise toward that number. However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. It's $14 . Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. "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. 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? (Jose M. Osorio / Chicago Tribune). Help us keep Minimum-Wage.org up-to-date! What to Know About the Cook County Commissioner After Advancing to the Runoff Election. 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. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. Chicago minimum wage 2023, what is? You have probably asked yourself this question before. 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? 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. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. They must be paid at least $12 an hour. As noted by the Illinois Department of Labor, the state's minimum wage is $12.00 per hour for untipped employees who are at least 18 years old. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. 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. Vaccines protect you and the people around you, reducing the spread of COVID-19. 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. endstream endobj startxref Required fields are marked *. Scheduled changes are also coming to the citys Fair Workweek Ordinance, which requires employers in certain industries to give employees advance notice of their schedules and pay them for last-minute changes. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. Who Qualifies . The minimum wage for small businesses continues to increase towards $15 per hour by 2023. 2023: $15. The more generous minimum wage may apply in these localities: Seattle: $18.69/hr. SummaryAs of July 1, 2022 the minimum wage in Chicago is $15.40 per hour for employers with 21 or more workers, and $14.50 per hour for employers with 4 to 20 workers. Fair Workweek Ordinance in Chicago also takes effect. 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. The minimum wage increase provides a multitude of benefits, from a better livelihood for workers to enhanced stability for employers when it comes to recruitment and retention, said Kenneth J. Meyer, BACP Commissioner. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. "We were the first city in the state to get to $15 and its going up today," she added. You can find more information about Illinois' minimum wage and labor laws on this site. In 2022, they must make $9.25 per hour. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees. The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. On January 1, the Illinois minimum wage increased to $12 an hour. If they fail to do so, they can be fined between $500 and $1,000 per day. 312 0 obj <>stream In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. All Domestic Workers must receive at least the $15.40 minimum wage. So, if youre wondering: what is minimum wage in Chicago 2022? 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? 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) . For instance, employees under the age of 18 must be paid $12 an hour. %PDF-1.6 % On Behalf of Billhorn Law Firm | Apr 24, 2022 | Wage & Hour Laws. 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