If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. Starting Friday, the umbrella of workers covered under the ordinance will expand and employers will be required to give those employees a few days additional notice of their schedules. Retaliation is prohibited. 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. Our previous post Alaska Minimum Wage 2023 (right information) We recommend that you also read our article titled. uJ(\cZYy:8-_Sg8W8gjcAn~k_65c%M'6nr Z1?vc33D$(MTfJ/`\b9{iN&D!w5v2eO>(p_MO%~|sp^0C9d20eeR1=7{Z#*"ng5Z03,>,b[]/2.R7Bw1}#aXYk(Ri8s4T7io7. R wy8yM`?xioUrX/ !f All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme. as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market. "We were the first city in the state to get to $15 and its going up today," she added. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. In the coming years, those rates will continue to increase. And for . Chicagos minimum wage is now at $15 per hour, four years before the state is set to reach that bench mark. 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\ 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. 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. Starting July 1, the minimum wage for tipped employees will rise to $7.40. Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. And. It has not increased since 2009. In addition to Chicago, there are other localities in Illinois that have passed municipal minimum wage legislation. Save my name, email, and website in this browser for the next time I comment. Instead you can report it. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD Nonprofits must have at least 250 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. 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. These recommendations. The citys minimum wage increases are laid out in its minimum wage ordinance. 183 0 obj <>stream 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. What will your paycheck look like? 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. On Behalf of Billhorn Law Firm | Apr 24, 2022 | Wage & Hour Laws. Chicago minimum wage will increase by 40 cents to $15 per hour. To learn about Chicagos labor laws, visitChicago.gov/LaborStandards. "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. Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. 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) . The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. All Domestic Workers must receive at least the $15.40 minimum wage. On January 1, the Illinois minimum wage increased to $12 an hour. That number comes from a 2019 report from the Illinois Economic Policy Institute that found a $15 minimum wage could directly affect over 430,000 workers in the city. See How All 50 Wards Voted in the 2023 Chicago Mayoral Election, All Eyes On a Strong' System That Could Hit Chicago Area Friday, But Much Uncertainty Remains, Who is Brandon Johnson? The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. 9 If the tipped . The minimum wage increase comes just in time for those struggling as the cost of everything is going up. Df&CA$g`@8/`5Lg`Z Businesses with fewer than 21 employees are required to pay employees at least $14.50 an hour. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. By this date, the notices must be posted in multiple languages. Contact. Last updated June 7, 2022. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. 126 0 obj <> endobj When she gets her check these days, she pays her bills, rent, light bill, gas bill, and may have only $100 left, which she says is not enough. "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. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. The cohort of workers covered under the ordinance will also expand. hbbd```b``"H; 5Dc0y L'`2D2 m_&II1`Y#)V"= 6R*Dr L W,R $8rF` !v hbbd```b``@$gj9` % TEdDH4) The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. 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. 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. Is any of our data outdated or broken? Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. "Employers need to know that these wage increases are not optional. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. What Is the Minimum Wage in Chicago? Copyright 2023 NBCUniversal Media, LLC. endstream endobj startxref SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. 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 Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. Domestic workers like those in childcare and home health services must be paid the same, regardless of the size of the company. 2023 minimum wage announcement poster. Local Minimum Wage Rates. It's $14 . particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. 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). The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. In addition, it will also affect tipped employees. Call the Office of Labor Standards at 312-774-2211 or email bacplaborstandards@cityofchicago.org. SeaTac: $19.06/hr. In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. 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. Last year, the minimum wage was $11 and $6.60, respectively. 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 citys minimum wage is not just a piece of legislation, it also influences employment. In Illinois, tipped employees may make $7.20 per hour in 2022. The minimum wage for medium-sized employers increased 50 cents this year. It depends on what you do and how many employees there are at your company. Keep in mind that Illinois and the Federal Fair Labor Standards Act both define various minimum wage exemptions and other labor laws that may apply to employees in Chicago. Anyone age 24 or younger employed by, or engaged in employment coordinated by a nonprofit organization or government agency will see a minimum wage increase to $12.00 on July 1, 2022. 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. For businesses with 20 or fewer employees, the minimum wage is $14.50 an hour, with a tipped minimum wage of $8.70. The minimum wage for employees under the age of 20 is $4.25 per hour for the first 90 days of employment, and after this, they are eligible for their Chicago minimum wage rate. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. Vaccines protect you and the people around you, reducing the spread of COVID-19. would raise starting wages to $15 an hour for all workers. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. Delawares minimum hourly wage will increase incrementally on January 1 of the next three years, to $11.75 in 2023, $13.25 in 2024, and $15.00 in 2025. Mayor Lightfoot has worked tirelessly to ensure that Chicagos workers, especially the most vulnerable, are protected under Chicagos labor laws. 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. Unfortunately, the Consumer Price Index this year exceeded that, Fox said. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. 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. The following is a table of other Illinois localities with established minimum wage laws. For instance, employees under the age of 18 must be paid $12 an hour. Overtime pay equals time and a half of an employees regular pay rate. ABC 7s I-Team breaks down the numbers for you. 0 Lightfoot said the move is a victory for working class employees who are the backbone of the city. The ABC 7 I-Team found out who may and may not benefit, and breaks down the numbers in your paycheck. Beginning in 2022, the minimum wage in Chicago will increase each year at a rate tied to the consumer price index, capped at 2.5% annually. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. So she's looking forward to the increase. SEIU Healthcare Illinois, the citys labor standards office, was a leading advocate for the Fight for 15 and is a leading advocate for the Chicago minimum wage. Its expected to increase by less than 3%, a tenth of that amount. Some local jurisdictions have higher minimum wage rates and different labor rules than Washington state. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. 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. 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. The increase, of 40 cents for workers at the city's large employers, comes at a time. The ordinance also sets a cap of 2.5% on annual increases, so the minimum wage in Chicago cant go above that. All Chicago worker protections are enforced by the BACP Office of Labor Standards (OLS). 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. The federal minimum wage rate was raised to $7.25/hour in 2009. While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage On July 1, the ordinance will require those employers to give workers 14 days notice of their schedules instead of the 10 days notice previously required. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. This year and beyond, the minimum wage increase for large employers is pegged to the Consumer Price Index or 2.5%, whichever is lower. 2022: $14.25. 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. Those smaller businesses will then continue to see minimum wage increase by 50 cents per year to reach $15 an hour by 2023. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July. Chicago's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. 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. (Jose M. Osorio / Chicago Tribune). 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) $14.50 for employers with 4-20 employees But that doesnt mean that businesses in the city dont have real concerns. 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 state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. Groups like the Fight for $15 have pushed for higher minimum wages for years. This year, the Consumer Price Index exceeded this cap and the minimum wage was frozen. A $1 increase in Illinois' minimum wage is set to take effect on New Year's Day 2022. . 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