2021: $13.50. hmoH~lUM4^=jld;Uof $F@.Y If a tipped workers wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. For smaller businesses with 4-20 employees, the increase is delayed until 2022. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. What Is the Minimum Wage in Chicago? Industries covered by the ordinance are health care, hotels, restaurants, retail, warehouses, manufacturing and building services. They must be paid at least $12 an hour. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. "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. 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. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. Vaccines protect you and the people around you, reducing the spread of COVID-19. 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. My Future. For tipped employees in Chicago, the minimum wage will be $9.24 for employers with 21 or more workers and $8.70 an hour for businesses with fewer than 21 workers. The more generous minimum wage may apply in these localities: Seattle: $18.69/hr. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. And, the rate is higher outside the city limits. %%EOF A $1 increase in Illinois' minimum wage is set to take effect on New Year's Day 2022. . It will continue to increase every year, linked to the Consumer Price Index and capped at 2.5%. 0 The minimum wage for workers under-18 in Illinois who work less than 650 hours in a calendar year is $8.50. 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. According to state law, teenagers under the age of 18 must be paid at least Illinois' current youth minimum wage, which is $9.25. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. No: Yes: The citys ordinance also extends certain sexual harassment protections for workers. 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 $9.24 for employers with 21 or more workers. Additionally, any employee that works two hours or more in the City within a two-week period must also receive at least the Chicago minimum wage. #{b,Ap)$B9(fpBKU RV0DX:]tkY#=m^ou`11: %?\N*H(UaAy.!Nj&iN}`fL'O!dFeM4'=/![bZTtY,|G1}u? would raise starting wages to $15 an hour for all workers. 312 0 obj <>stream Beginning July 1, 2022, employers in Chicago must post a Minimum Wage Notice and Fair Workweek Notice. While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage All Rights Reserved. hb``e``fc```rb@@,&+MW(1`fbea9*C[$0qeY#![O j L^)P v30BT1 Contact. Eligible youth can find qualifying opportunities by downloading the My CHI. Because Chicago has a higher minimum wage rate than the one set by Illinois or the Federal government, the higher local minimum wage rate takes precedence and must be paid to all employees covered by the local minimum wage regulation. Copyright 2023 NBCUniversal Media, LLC. She is reminding that employers must comply with the change. Overtime pay equals time and a half of an employees regular pay rate. But July 1, that rate is set to increase, according to officials. You can find more information about Illinois' minimum wage and labor laws on this site. 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. Fight for $15 protesters rally and chant "We're fired up, can't take it no more," in Chicago on April 14, 2016. On Behalf of Billhorn Law Firm | Apr 24, 2022 | Wage & Hour Laws. State Minimum Wage Rates 2022 vs. 2023. 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. 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. Let us know in a single click, and we'll fix it as soon as possible. All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. This site is a free public service not affiliated with the Department of Labor or any governmental organization. Businesses with fewer than 21 employees are required to pay employees at least $14.50 an hour. The city is raising its minimum wage every year, as mandated by law. Some local jurisdictions have higher minimum wage rates and different labor rules than Washington state. endstream endobj 127 0 obj <. And that $15 an hour would make a difference for so many, especially for . Several big measures are going into effect July 1 in Chicago, one of them being an increase in the city's minimum wage. The increase will affect tipped employees as well. The departments investigators can answer questions and look into whether a case may need to be investigated more formally, Fox said. 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. Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. 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.". What is the minimum wage in Chicago? The citys minimum wage increases are laid out in its minimum wage ordinance. Local Minimum Wage Rates. 2022: $14.25. But proponents of increasing Chicago's minimum wage argued that the cost of living in Chicago relative to the rest of the state requires a faster timeline. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. Chicago's current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with . Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. Companies with wage floors at $15 or higher include big employers like Target, Costco and Amazon. 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. 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 table below lists the current prevailing 2023 minimum wage rates for every state in the United States. "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. Beginning on July 1, 2022, the minimum wage in Chicago will be: $15.40 per hour for Employers who have 21 or more Employees ($9.24 per hour for tipped Employees like restaurant servers). If they fail to do so, they can be fined between $500 and $1,000 per day. Employers who violate the notices may face fines of $500 to $1,000 per day. To learn about Chicagos labor laws, visitChicago.gov/LaborStandards. Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. For businesses with 20 or fewer employees, the minimum wage is $14.50 an hour, with a tipped minimum wage of $8.70. 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. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD Businesses must have at least 50 employees who are eligible to be covered under the ordinance for the law to apply. 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. Chicagos minimum wage increases each July 1st. By this date, the notices must be posted in multiple languages. When applying an allowance for gratuities to the wage of City concessionaire employees in positions that customarily receive gratuities, the resulting rate is $8.20 per hour. It's $14 . The new ordinance also requires employers to pay younger workers more than the minimum wage. But, what will it cost you? The minimum wage, its just, its fair, it gives people a living wage, said Andy Fox, the director of Chicagos Office of Labor Standards. 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. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. The cohort of workers covered under the ordinance will also expand. 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. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. It depends on what you do and how many employees there are at your company. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. Chicago minimum wage 2023, what is? Until this year, the minimum wage for larger employers in Chicago increased $1 per year. The citys minimum wage is not just a piece of legislation, it also influences employment. 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. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. Nonprofits must have at least 250 workers. 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). 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. For tipped workers, the rates will also increase -- to $9.24 for large employers and $8.70 for smaller businesses. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. Fully updated for March 2017! The Illinois minimum wage is scheduled to increase to $12-an-hour on January 1,. {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D Help us keep Minimum-Wage.org up-to-date! Learn more atLearn more at Chicago.gov/COVIDVax. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. The federal minimum wage rate was raised to $7.25/hour in 2009. f you want to learn about Arkansas minimum wage, you can click on it. 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) . 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