State Minimum Wage Rates 2022 vs. 2023. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. 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. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. 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. 2019: $12. "Raising the minimum wage to $15.40 and requiring employers to post schedules 14 days in advance not only protects the rights of workers but creates better economic opportunity for all residents. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. According to state law, teenagers under the age of 18 must be paid at least Illinois' current youth minimum wage, which is $9.25. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. "That's a little more money you can buy groceries with," says Rosemary Coleman who is ready to see more money in her paycheck. %PDF-1.6 % Businesses must have at least 50 employees who are eligible to be covered under the ordinance for the law to apply. We must continue to invest in Chicagos workforce, and these scheduled updates to the Chicago minimum wage and fair workweek ordinance will continue to enhance the vibrancy and equity of our local economy., Chicagos new minimum wage and fair workweek changes will have a significant impact on Chicago workers and their families as we focus on a prosperous economic recovery, said Susan Sadlowski Garza, 10th Ward Alderwoman and Chairwoman of the Committee on Workforce Development. Chicago minimum wage is tiedred, meaning that businesses with 21 or more employees must pay more than businesses with four to 20 employees. Help us keep Minimum-Wage.org up-to-date! 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? July 1, 2022. Read more: Does Marshalls Take Apple Pay? 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) . They must be paid at least $12 an hour. Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. Click any state for details about the minimum wage, exemptions, and other state labor laws. Chicago minimum wage is tiered for large and small businesses. 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. 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 Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. 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. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. All Rights Reserved. Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. 2023: $15. {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D In raising the minimum wage, the city continues to be a leader in advocating for equitable job opportunities to lift up residents in all of Chicago's 77 neighborhoods.". If you are not seeing the minimum wage increase in your paycheck and you think you should be getting it, you may want to avoid confronting your boss. Df&CA$g`@8/`5Lg`Z "We estimate they're close to 500,000 workers, that this increase will affect and help uplift and each and every one of them should see that increase in their next paycheck," said the deputy chief of staff for the Chicago Federation of Labor. What will your paycheck look like? The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. 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. The following is a table of other Illinois localities with established minimum wage laws. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. Companies with wage floors at $15 or higher include big employers like Target, Costco and Amazon. This site is a free public service not affiliated with the Department of Labor or any governmental organization. Restaurant workers and others who receive tips will now get a base rate of $9 per hour. Youths working less than 650 hours per year. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. 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. 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. 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. gRsg[sH~3\C? 2023 minimum wage announcement poster. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. 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. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. In addition to the city's minimum wage increase on July 1, certain industries in Chicago including healthcare, hotel, restaurant, retail or warehouse, at that time will also be required to post work schedules with at least 14 days' notice, an increase form the previous 10 days' notice. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. 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. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. Instead you can report it. As of July 1, 2022, the Minimum Wage to be paid under City contracts or concessionaire agreements pursuant to the Order is $16.00 per hour. Notice effective on July 1, 2022. 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. Employers who violate the notices may face fines of $500 to $1,000 per day. 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. New minimum wages in effect July 1 for Chicago, Cook County . So she's looking forward to the increase. 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. "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. If the tipped . With 71 percent of our total budget coming from local, city and county contracts, we are acutely aware of how important it is for workers to be paid fairly for their labor. 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. 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. In addition, it will also affect tipped employees. (MCMF) mobile app,which is aresource designed to help teens and young adultseasily find out-of-school programs, events, resources, jobs, and more. And now, as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market, many workers see participation in the labor movement as a key to higher wages. 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. 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? On January 1, the Illinois minimum wage increased to $12 an hour. 0 Chicagos minimum wage is now at $15 per hour, four years before the state is set to reach that bench mark. However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. Copyright 2023 NBCUniversal Media, LLC. Chicago's minimum wage is going up Thursday. 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. 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. Nonprofits must have at least 250 workers. Chicago minimum wage 2023, what is? "Employers need to know that these wage increases are not optional. hmoH~lUM4^=jld;Uof $F@.Y 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. Either way, this law goes into effect next month, and itll take time to see just how well it works (or doesnt) for everyone involved. The citys minimum wage policies and exceptions can be complicated. "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.". A $1 increase in Illinois' minimum wage is set to take effect on New Year's Day 2022. . 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. Starting July 1, the minimum wage for tipped employees will rise to $7.40. Required fields are marked *. They plan to pay even more at all three of her locations to stay competitive and keep workers. Chicago has a long, proud history of being allied with workers, both promoting and protecting their rights, said Mayor Lightfoot. Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. BK Let us know in a single click, and we'll fix it as soon as possible. Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. Your email address will not be published. hb``e``fc```rb@@,&+MW(1`fbea9*C[$0qeY#![O j L^)P v30BT1 If the citys unemployment rate meets or exceeds 8.5% in a given year, there will be no minimum wage increase the next year. 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. The new ordinance also requires employers to pay younger workers more than the minimum wage. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. Youth workers in Chicago are to be paid a minimum wage of $12.00 per hour, with an overtime rate of $18.00 per hour once 40 hours a week has been surpassed. %%EOF 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. All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. 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. 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 $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. This year, the Consumer Price Index exceeded this cap and the minimum wage was frozen. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. Fully updated for March 2017! It also increases the minimum wage for young employees employed by religious institutions. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; Youth Workers . 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? 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. 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 larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower, since reaching $15 per hour in 2021. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. 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. 159 0 obj <>/Filter/FlateDecode/ID[<3BFCB49C3177B8469B7F76F87E6D841A><380E6F55F1D8B24981E52EE9EE2EDFE4>]/Index[126 58]/Info 125 0 R/Length 141/Prev 131880/Root 127 0 R/Size 184/Type/XRef/W[1 3 1]>>stream 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. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. The citys minimum wage increases are laid out in its minimum wage ordinance. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. 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. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher.