It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; Youth Workers . 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. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. These recommendations. "Now I will have to keep going higher and higher than the minimum wage because a lot of people don't want to work for minimum wage," Owner Laricia Baker told the I-Team. For businesses with 20 or fewer employees, the minimum wage is $14.50 an hour, with a tipped minimum wage of $8.70. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. The increase will raise Chicago's minimum wage by $0.50 per hour. 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. 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. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. Chicago minimum wage 2023, what is? as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market. Retaliation is prohibited. 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. Groups like the Fight for $15 have pushed for higher minimum wages for years. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. They must be paid at least $12 an hour. The minimum wage for medium-sized employers increased 50 cents this year. Read more: Does Marshalls Take Apple Pay? The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago's youth looking for summer employment opportunities. Under Illinois law, the minimum wage for workers aged 18 and over is $11.00 per hour as of January 2021. 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. July 1, 2022. Another exception is for young employees those 24 or younger of religious corporations or organizations. 2021: $13.50. 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. 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\ 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. The new ordinance also requires employers to pay younger workers more than the minimum wage. So, if youre wondering: what is minimum wage in Chicago 2022? endstream endobj 127 0 obj <. My Future. Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. f you want to learn about Arkansas minimum wage, you can click on it. Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. And 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 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 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? 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. The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. Raising the minimum wage has lifted up thousands of workers throughout Chicago, and especially during these times of inflation and uncertainty, every cent counts, said Bob Reiter, President of the Chicago Federation of Labor. 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. Employees need to earn less than $29.35 per-hour or $56,381 a year to gain the protection. endstream endobj startxref On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Employers who violate the notices may face fines of $500 to $1,000 per day. Who Qualifies . 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), Chicago's Minimum Wage Increase and Fair Workweek Changes Go Into Effect July 1, 2022, $15.40 for employers with 21 or more employees (including all domestic workers, regardless of the number employed), The minimum wage for tipped employees will be $9.24 for employers with 21 or more employees, and $8.70 for employers with 4-20 employees (employers must make up the difference between any tips received and the applicable minimum wage for non-tipped workers. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. According to the Department of Business Affairs and Consumer Protection, Chicago minimum wage is not keeping pace with national inflation. The increase will affect tipped employees as well. The citys minimum wage is not just a piece of legislation, it also influences employment. Local Minimum Wage Rates. 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 larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower, since reaching $15 per hour in 2021. Unfortunately, the Consumer Price Index this year exceeded that, Fox said. You have probably asked yourself this question before. The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. But that doesnt mean that businesses in the city dont have real concerns. {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D On January 1, the Illinois minimum wage increased to $12 an hour. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. 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. 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. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster State Minimum Wages | The citys ordinance also extends certain sexual harassment protections for workers. Get an Illinois all-in-one labor law poster. Help us keep Minimum-Wage.org up-to-date! "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. Several big measures are going into effect July 1 in Chicago, one of them being an increase in the city's minimum wage. The more generous minimum wage may apply in these localities: Seattle: $18.69/hr. For businesses. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. Nixle is increasing Chicagos minimum wage because we believe a fair days pay is part of our longstanding commitment to safety in the workplace. Beginning July 1, 2022, employers in Chicago must post a Minimum Wage Notice and Fair Workweek Notice. Businesses must have at least 50 employees who are eligible to be covered under the ordinance for the law to apply. hb```R ce`axpSIi~r[?; (J30X03g'w5$: 3g0`[!WX?q;l^ J`G[( H Deerfield-based Walgreens announced last year it would raise starting wages to $15 an hour for all workers by November of this year. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL 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. In Illinois, tipped employees may make $7.20 per hour in 2022. It will reach $15 on July 1, 2023. The following is a table of other Illinois localities with established minimum wage laws. particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. Chicago's minimum wage is going up Thursday. (MCMF) mobile app,which is aresource designed to help teens and young adultseasily find out-of-school programs, events, resources, jobs, and more. endstream endobj startxref The minimum wage, its just, its fair, it gives people a living wage, said Andy Fox, the director of Chicagos Office of Labor Standards. BK Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. But how much money could you get? Starting July 1, the minimum wage for tipped employees will rise to $7.40. endstream endobj 270 0 obj <>stream 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. Restaurant workers and others who receive tips will now get a base rate of $9 per hour. 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