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. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Several big measures are going into effect July 1 in Chicago, one of them being an increase in the city's minimum wage. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. 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 new ordinance also requires employers to pay younger workers more than the minimum wage. "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. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. Employees need to earn less than $29.35 per-hour or $56,381 a year to gain the protection. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster If you are not seeing the minimum wage increase in your paycheck and you think you should be getting it, you may want to avoid confronting your boss. In the coming years, those rates will continue to increase. For businesses with 20 or fewer employees, the minimum wage is $14.50 an hour, with a tipped minimum wage of $8.70. 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. 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. Required fields are marked *. 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 (WLS) -- The minimum wage in Chicago and suburban Cook County increased Friday. CHICAGO Today, Mayor Lori E. Lightfoot and the Chicago Department of Business Affairs and Consumer Protection (BACP) announced the annual scheduled increase in Chicagos minimum wage and a scheduled enhancement of the Fair Workweek ordinance requirements. 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. Under the ordinance, the citys minimum wage requirements can be waived in a collective bargaining agreement, but only if the waiver is written out explicitly in the agreement. If the tipped . 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: The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. Overtime pay equals time and a half of an employees regular pay rate. These recommendations. In Illinois, tipped employees may make $7.20 per hour in 2022. 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.". 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. While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage The city estimates that more than 400,000 people will be affected by the minimum wage increase. Chicago has a scheduled increase to the minimum wage from $14.50 to $15.00 per hour, which will take effect on July 1st, 2023. And, the rate is higher outside the city limits. The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. "u$G Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. gRsg[sH~3\C? (Jose M. Osorio / Chicago Tribune). 312 0 obj <>stream You can find a list of highest and lowest minimum wage rates here . July 1,2022 Effective Date. Youths working less than 650 hours per year. 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. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. Several factors influence the minimum wage in Chicago, including the economy and the number of jobs available. 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. Chicago's minimum wage is going up Thursday. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. This site is a free public service not affiliated with the Department of Labor or any governmental organization. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. BACP will host free informational webinars to prepare employers for the upcoming changes to Chicagos Labor Standards Laws. 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. 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 citys Fair Workweek Ordinance, which went into effect in 2020, requires large employers in certain industries to give workers advance notice of their schedule and pay them for last-minute changes. Click any state for details about the minimum wage, exemptions, and other state labor laws. It also increases the minimum wage for young employees employed by religious institutions. The more generous minimum wage may apply in these localities: Seattle: $18.69/hr. For larger businesses with 21 or more employees, the minimum wage increases annually according to the Consumer Price Index or 2.5%, whichever is lower, until reaching $15 per hour in 2021. And. 2023: $15. Chicagos minimum wage increases each July 1st. "Employers need to know that these wage increases are not optional. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. There are some exceptions: For example, tipped employees must make a minimum of either $9.24 for large employers or $8.70 for medium-sized employers. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. 2021: $13.50. 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? Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. So, if youre wondering: what is minimum wage in Chicago 2022? That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. The minimum wage, its just, its fair, it gives people a living wage, said Andy Fox, the director of Chicagos Office of Labor Standards. Anyone . Unfortunately, the Consumer Price Index this year exceeded that, Fox said. rates that apply to employees of different classes of company who work Chicago. 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 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. By July 2022, Chicago businesses are required to post the new minimum wage notice in multiple languages. 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 Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Eligible youth can find qualifying opportunities by downloading the My CHI. In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. Vaccines protect you and the people around you, reducing the spread of COVID-19. endstream endobj 271 0 obj <>stream 126 0 obj <> endobj July 1, 2022. It will continue to increase every year, linked to the Consumer Price Index and capped at 2.5%. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. 2023 minimum wage announcement poster. hmoH~lUM4^=jld;Uof $F@.Y Fully updated for March 2017! Chicago's minimum wage is going up Thursday. 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. 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. 2020: $12.75. No: Yes: Mayor Lightfoot has worked tirelessly to ensure that Chicagos workers, especially the most vulnerable, are protected under Chicagos labor laws. Last year, the minimum wage was $11 and $6.60, respectively. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. The increase, of 40 cents for workers at the city's large employers, comes at a time. Ultimately, this will be a boon for low-income workers in Chicago. Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. Learn more atLearn more at Chicago.gov/COVIDVax. This increase will hit most large employers in Chicago. It is set to increase Jan. 1, 2023, to $13 and $7.80, respectively. Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. This year and beyond, the minimum wage increase for large employers is pegged to the Consumer Price Index or 2.5%, whichever is 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. If a tipped workers wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. The minimum wage is set by the citys ordinance. Instead you can report it. Our city's labor laws, including the minimum wage, are an important backbone of our city's economy and provide stability to working families. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. endstream endobj startxref They plan to pay even more at all three of her locations to stay competitive and keep workers. My Future. Your email address will not be published. For tipped workers, the rates will also increase -- to $9.24 for large employers and $8.70 for smaller businesses. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. But how much money could you get? Your email address will not be published. endstream endobj 127 0 obj <. 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. endstream endobj startxref For smaller businesses with 4-20 employees, the increase is delayed until 2022. Chicago minimum wage will increase by 40 cents to $15 per hour. A $1 increase in Illinois' minimum wage is set to take effect on New Year's Day 2022. . However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. 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. Fair Workweek Ordinance in Chicago also takes effect. 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. The Minimum Wage ordinance in Chicago currently provides that workers, defined as Covered Employees, shall earn $14.50 per hour if they work for an employer that has from 4 to 20 employees and $15.40 for an employer that has 21 or more employees. 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. Read more: Does Marshalls Take Apple Pay? The minimum wage for small businesses continues to increase towards $15 per hour by 2023. hbbd```b``"H; 5Dc0y L'`2D2 m_&II1`Y#)V"= 6R*Dr L W,R $8rF` !v }y>"e't:ikz1(ET&Mj^|M2FeI;oWym?RV:G\d~~QgqVpVx!nMr{:fBbZ[A >[m;!av$voedkubG|D,Wql1.DUYEj-xkI='aZ?]aoe!NvJR6l9c0'(!t,x|?N_{yuy#olII>]vd$Z#{gh?ECc+Rv-H Restaurant workers and others who receive tips will now get a base rate of $9 per hour. Businesses must have at least 50 employees who are eligible to be covered under the ordinance for the law to apply. The citys minimum wage is not just a piece of legislation, it also influences employment. The increase will affect tipped employees as well. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. Content 2023 Minimum-Wage.org, all rights reserved. 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. Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. 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