The ABC 7 I-Team found out who may and may not benefit, and breaks down the numbers in your paycheck. Earlier this year, Illinois amended its minimum wage law to gradually increase the minimum wage for Illinois employees to $15/hour by 2025. Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. 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. The minimum wage in Chicago and suburban Cook County increased Friday and in the city, new parts of the Fair Workweek Ordinance took effect. Another exception is for young employees those 24 or younger of religious corporations or organizations. The minimum wage for workers under-18 in Illinois who work less than 650 hours in a calendar year is $8.50. #{b,Ap)$B9(fpBKU RV0DX:]tkY#=m^ou`11: %?\N*H(UaAy.!Nj&iN}`fL'O!dFeM4'=/![bZTtY,|G1}u? The cohort of workers covered under the ordinance will also expand. My Future. The increase will raise Chicago's minimum wage by $0.50 per hour. 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. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. Usage is subject to our Terms and Privacy Policy. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. 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. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. A $1 increase in Illinois' minimum wage is set to take effect on New Year's Day 2022. . Employers who violate the notices may face fines of $500 to $1,000 per day. What is minimum wage in Chicago 2022? 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. rates that apply to employees of different classes of company who work Chicago. 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). The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Our previous post Alaska Minimum Wage 2023 (right information) We recommend that you also read our article titled. July 1, 2022. The law also requires employers to pay overtime to employees who work more than forty hours in a week. You can find more information about Illinois' minimum wage and labor laws on this site. The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. It depends on what you do and how many employees there are at your company. Chicago, Illinois Local Minimum Wage for 2022, 2023 While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage rates that apply to employees of different classes of company who work Chicago. 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 Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. Several big measures are going into effect July 1 in Chicago, one of them being an increase in the city's minimum wage. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. 9 This year, the Consumer Price Index exceeded this cap and the minimum wage was frozen. Employees need to earn less than $29.35 per-hour or $56,381 a year to gain the protection. And for youth workers, the minimum wage is now $11 per hour, rising until it reaches $15 an hour by 2025, when there will no longer be an exemption to the city's minimum wage ordinance for employees under 18. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. The city estimates that more than 400,000 people will be affected by the minimum wage increase. In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. Groups like Fight for $15 have been lobbying for those increases for years, and a handful of large retailers have already boosted wages to that level or higher. 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. 2023: $15. 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. BK The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago's youth looking for summer employment opportunities. While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. 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. f you want to learn about Arkansas minimum wage, you can click on it. Anyone . 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? Copyright 2023 WLS-TV. 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. "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. Deerfield-based Walgreens announced last year it would raise starting wages to $15 an hour for all workers by November of this year. Cook County, which has it's own Minimum Wage Ordinance, will also increase its minimum wage on July 1, from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped workers. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD endstream endobj 271 0 obj <>stream Contact. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. Alaska Minimum Wage 2023 (right information). Fight for $15 protesters rally and chant "We're fired up, can't take it no more," in Chicago on April 14, 2016. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. hb```R ce`axpSIi~r[?; (J30X03g'w5$: 3g0`[!WX?q;l^ J`G[( H But July 1, that rate is set to increase, according to officials. Youths who work over 650 hours per year are entitled to the regular minimum wage. Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. How That Could Change, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. It will reach $15 on July 1, 2023. 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. If the tipped . ABC 7s I-Team breaks down the numbers for you. Under Illinois law, the minimum wage for workers aged 18 and over is $11.00 per hour as of January 2021. Your email address will not be published. "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.". Aside from the fines, employers will be forced to post the minimum wage notices in multiple languages. Overtime pay equals time and a half of an employees regular pay rate. She is reminding that employers must comply with the change. Youths working less than 650 hours per year. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. %%EOF 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. This increase will hit most large employers in Chicago. Chicagos minimum wage increases each July 1st. This site is a free public service not affiliated with the Department of Labor or any governmental organization. Eligible youth can find qualifying opportunities by downloading the My CHI. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. 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? endstream endobj 267 0 obj <>/Metadata 5 0 R/OCProperties<>/OCGs[298 0 R]>>/Outlines 9 0 R/PageLayout/SinglePage/Pages 264 0 R/StructTreeRoot 12 0 R/Type/Catalog>> endobj 268 0 obj <>/ExtGState<>/Font<>/Properties<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 269 0 obj <>stream If a tipped workers wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. In the coming years, those rates will continue to increase. Chicagos minimum wage is now at $15 per hour, four years before the state is set to reach that bench mark. %PDF-1.6 % 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. Nixle is increasing Chicagos minimum wage because we believe a fair days pay is part of our longstanding commitment to safety in the workplace. That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%. 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) . The city is raising its minimum wage every year, as mandated by law. Vaccines protect you and the people around you, reducing the spread of COVID-19. What will your paycheck look like? 4. 2021: $13.50. In addition to Chicago, there are other localities in Illinois that have passed municipal minimum wage legislation. But that doesnt mean that businesses in the city dont have real concerns. Chicago has been a leader in worker protections, and the upcoming changes reflect the Citys commitment to creating financial opportunity for all Chicagoans. They must be paid at least $12 an hour. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Is any of our data outdated or broken? The citys ordinance also extends certain sexual harassment protections for workers. Last year, the minimum wage was $11 and $6.60, respectively. / 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. The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. Fully updated for March 2017! 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. For medium-sized companies with between four and 20 employees, workers must make a minimum of $14.50 an hour, up from $14 last year. Industries covered by the ordinance are health care, hotels, restaurants, retail, warehouses, manufacturing and building services. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. gRsg[sH~3\C? Let us know in a single click, and we'll fix it as soon as possible. So, if youre wondering: what is minimum wage in Chicago 2022? "Employers need to know that these wage increases are not optional. 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