For Cook County and Chicago, the minimum wage goes up, effective Friday, July 1. The Chicago minimum wage will increase to $15.40 per hour for employers with 21 or more employees and to $14.50 per hour for employers with 4-20 employees. Decisions of the Commission on Human Rights, Office of the Independent Inspector General, CARES Act Information for Local Governments, Freedom of Information Act for Offices Under the President, Living Wage Ordinance Protocol (122.31 KB). Subscribe to our blog for the latest employment law news. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 However, this is set to change in 2020, when the state will raise the minimum wage to $10.00. 6-105-010 Definitions. But Leslie Shedd, vice president of the National Restaurant Association, said in an emailed statement to The Associated Press, A study in one of the wealthiest cities in the U.S. does not reflect the impact drastic minimum wage increases could have across the country and should not be relied upon as this discussion continues especially considering other studies have refuted these results., Minimum wage hikes can drive companies out of business. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days' sick leave While the federal minimum wage is $7.25 per hour, and Illinois' statewide minimum wage is. The wage hike is part of an ordinance passed by Chicago Mayor Lori Lightfoot in 2019. Chicago and Cook County should follow suit and reconsider their minimum wage hikes. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days' sick leave While the federal minimum wage is $7.25 per hour, and Illinois' statewide minimum wage is. The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. The Ordinance applies to hourly, salaried, and tipped employees, over the age of 18, working in Cook County, even those who may be working within the County to make deliveries or driving within the County limits. Suite 400 The minimum wage increase rate is capped at no more 2.5% per year and will not rise if Cook County experiences unemployment of at least 8.5% the previous year. We have converted it to an hourly wage for the sake of comparison. A study released in December 2015 by University of California, San Diego Assistant Professor of Economics Jeffrey Clemens reveals that minimum wage increases between 2006 and 2012 reduced employment for people ages 16 to 30 with less than a high school diploma by 5.6 percentage points. Illinois State Mandatory Updates. Chicago passed a minimum wage ordinance in 2014. Rising costs of goods and services has cut Illinoisans pay by $2,230 on average. The Wages set out in Sections 42-13 and 42-14 are subject to the overtime compensation provisions in the Cook County Minimum Wage Law, with the exception that the definitions of "Employer" and "Employee" in this chapter shall apply. 6-105-050 Wage theft. Employers know that the new year brings minimum wage increases for dozens of jurisdictions across the U.S. On Jan. 1, 2023, 40 counties and cities will increase their minimum wage rates. 2/2/2023 Job Shadow Day & more. They will be based on percentage increases determined by the . Unlike last year, where the unemployment rate was greater than 8.5%, the unemployment rate is now under 8.5%, which means that the minimum wage for . All Rights Reserved. Chicagos current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with four to 20 employees. And while a large chain might be able to absorb the costs of a minimum wage hike by hiring fewer new employees, these costs impose greater hardships on small businesses. Location Address 69 W. Washington Street, Suite 1130, Chicago, IL 60602 Location Email human.rights@cookcountyil.gov Location Phone 312-603-1100 Location Fax 312-603-9988 Location Hours Sunday: Closed Monday: 8:30 am-4:30 pm Tuesday: 8:30 am-4:30 pm Wednesday: 8:30 am-4:30 pm Thursday: 8:30 am-4:30 pm Friday: 8:30 am-4:30 pm Saturday: Closed 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. Last updated June 7, 2022. Copyright 2023 GovDocs, Inc. GovDocs is a registered trademark of GovDocs, Inc. Economic hubs of Denver, Seattle and Minneapolis, A jurisdiction with rate over $19 an hour. 2022 to $7.20. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. The Washington Post summarized the study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase. For example, someone over 18. Raising the minimum wage and mandating paid sick leave might sound pro-worker, but leaders in many Cook municipalities have said these measures would impose heavy burdens on businesses, and result in fewer jobs for residents. It is not surprising that so many municipalities are rejecting ordinances that can make it even harder for businesses to stay afloat, and to provide job opportunities for residents who need them. In October 2016, the Cook County Board also passed an ordinance mandating that employers in Cook County provide each employee with one hour of sick leave for every 40 hours worked, up to 40 hours of paid sick leave per year, for employees who have worked at least 80 hours within a 120-day period. But wage hikes have a worse effect on lower quality restaurants: A $1 increase in the minimum wage leads to a 14 percent rise in the likelihood a 3.5-star-rated (i.e., median-rated on Yelp) restaurant will close, according to the study. 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 . J.B. Pritzker signed legislation in 2019 putting . t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry. $9.45 Cash Wage. Teenagers (under the age of 18) must be paid the States minimum wage of $9.25. In 2019, Illinois Gov.. On January 1, minimum wages went up in 20 states. For July 1, 2022 through June 30, 2023, those rates are: $14.75 per hour - Portland metro. Illinois labor law allows tipped employees to be paid a lower cash wage than the standard Illinois minimum wage by their employers, as up to $3.30 in tips earned per hour can be deducted from their wage as a "Tip Credit". Instead, they must be paid the States minimum wage for workers under the age of 18. Editor/Writer . In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. 373 0 obj <>stream 302 0 obj <> endobj Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices., Minimum wage hikes can drive companies out of business. But more than 80 percent of Cook Countys 132 municipalities have opted out of the countys minimum wage and sick leave ordinances, with East Dundee voting to opt out July 17. Schaumburgs Woodfield Mall is a shopping destination with dozens of stores and eateries. MIT labor economist David Autor said in a statement reported by the Los Angeles Times, [The study] suggests we should be proceeding cautiously when we start pushing minimum wages into ranges where they are pretty significant., The June 2017 study echoed the 2016 report by University of Washington researchers on the effects of the first phase of Seattles increase in its minimum wage, when the rate increased to as much as $11 an hour from $9.47 an hour. Strategic Plan(English Version) Donar/Donate 80% of Cook County municipalities have opted out of minimum wage, sick leave ordinances, countys minimum wage and sick leave ordinances, unemployment in Chicago or Cook County, respectively, reaches 8.5 percent, highest black unemployment rate in the nation. Chicago passed a similar sick leave ordinance in 2016. Starting July 1, minimum wage in Chicago will increase by $1 to $14 per hour for employers with more than 21 workers. 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. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. All Rights Reserved. But Leslie Shedd, vice president of the National Restaurant Association, said in an emailed statement to The Associated Press, A study in one of the wealthiest cities in the U.S. does not reflect the impact drastic minimum wage increases could have across the country and should not be relied upon as this discussion continues especially considering other studies have refuted these results.. All rights reserved, Chicago Police Supt. Cook Countys minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. Illinois Gov. Last year, the minimum wage was $11 and $6.60, respectively. CHICAGO - The minimum wage in Illinois is set to increase at the start of 2023. Blue Island 10. This ordinance requires that all employers who contract with Cook County government to provide labor or who operate on property in Cook County that receives a Class 6B, Class 8 or Class 9 property tax incentive pay their employees not less than a living wage as determined annually by Cook County's Chief Financial Officer. The minimum wage as of July 1, 2022 will be: If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. starts here. More than 50 municipalities have opted out of Cook Countys minimum wage hike, sick days mandate, unemployment in Chicago or Cook County, respectively, reaches 8.5 percent, Des Plaines City Council voted to opt out, reduction of over $100 million per year in total payroll, highest black unemployment rate in the nation. This site is protected by reCAPTCHA and the Google Privacy Policy $4.75 Tip Credit. Cook County Government. According to Cook County's Minimum Wage Ordinance, the minimum wage each year increases according to a formula set by the Ordinance, and applies to hourly, salaried, and tipped employees, over the age of 18 working in Cook County, and those who may be working within the County to make deliveries or driving within County limits. Cook County and Chicago's annual minimum wage increases go into effect on July 1, 2022. The black unemployment rate in Illinois is more than double the states jobless rate for white residents. comeback 69 W. Washington Street, If the tipped wage plus tips does not equal the . $8.75 (for employers offering specified health benefits) $9.75 (for all other employers) In the city of Chicago beginning July 1, minimum wage for employers with 21 or more employees with be $15.40, and $14.50 or smaller employers. Employers know that the new year brings minimum wage increases for dozens of jurisdictions across the U.S. On Jan. 1, 2023, 40 counties and cities will increase their minimum wage rates. Across the state, inflation has far exceeded wage growth. In the event that the Cook County . Copyright 2023 NBCUniversal Media, LLC. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? Click here to review Cook County's minimum wage law. July 1, 2022; Evanston: $12.00 per hour: $13.00 per hour: $13.00 per hour: $13.35 per hour: Chicago: $13.00 per hour: $14.00 per hour: $15.00 per hour: . As of 12/31/2022. While the federal minimum wage is $7.25 per hour, and Illinois statewide minimum wage is currently $8.25 per hour, the city of Chicago and Cook County have each hiked their minimum wages even higher. Ordinance No. Among the municipalities that have opted out are some of the areas major entertainment, restaurant and retail hubs. Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. Employers must inform employees of these increases in writing. Complaint forms and additional informationcan be found online. 802 South 2nd Street | Springfield, IL 62704 802 South 2nd Street | Springfield, IL 62704 Illinois Tipped Minimum Wage Laws for 2022, 2023 Illinois' normal state minimum wage rate is $13.00 per hour. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). (Ord. The minimum wage for non-tipped workers remains $13.35. The ordinance phases in the increase: By July 1, 2017, the minimum wage will rise to $10, and the level goes up by $1 each year after that until it reaches $13 in July 2020. comeback State: Jurisdiction/Minimum Wage: . Under federal law, employers must notify tipped employees that the employer is taking the tip credit, including any changes to their rate of pay. Illinois employers may not pay you under $13.00 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . The ordinance phases in the increase: On July 1, 2017, the minimum wage rose to $10, and the level goes up by $1 each year after that until it reaches $13 in July 2020. Employers should provide new tip credit notices every time a tipped employees wage rate changes. endstream endobj startxref And local ordinances to hike the minimum wage and mandate paid sick leave now loom over municipalities in Cook County, as the laws will take effect July 1. 6-105-015 Procedures for payment of wages. Brookfield 13. hbbd```b`` "7H$)[ "d2 "kl}8#}6D@{>m"E`s3UVH``q[ DAd8qX Research on minimum wage laws backs up their sentiments. Moreover, the income gains for low-wage workers who kept their jobs were mostly due to the strong local economy, with only 25 percent of those gains attributable to the hike in the minimum wage. Illinois 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Eagan, MN 55121 What is the minimum wage in Cook County 2022? The "sub-minimum" hourly wage for tipped workers at small businesses (4-20 employees) will increase to $8.70; at large businesses (21 or more employees), it will rise to $9.24, according to a. Burnham 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. Therefore, even if an employer provided a tip credit notice in the past, employers must provide an updated tip credit notice with the new minimum wage rates. May 31, 2022, 7:59 PM. Cook County, which has its 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. 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