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And. as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July. Beginning July 1, 2022, employers in Chicago must post a Minimum Wage Notice and Fair Workweek Notice. How That Could Change, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? The citys ordinance also extends certain sexual harassment protections for workers. It depends on what you do and how many employees there are at your company. "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. The citys minimum wage is not just a piece of legislation, it also influences employment. Under Illinois law, the minimum wage for workers aged 18 and over is $11.00 per hour as of January 2021. That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%. Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. 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. "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. endstream
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Federal Minimum Wage | 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. 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. 2021: $13.50. Some local jurisdictions have higher minimum wage rates and different labor rules than Washington state. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. 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. For businesses. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. The federal minimum wage is $7.25 an hour. The federal minimum wage rate was raised to $7.25/hour in 2009. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. 2022: $14.25. 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. And. Chicago minimum wage in 2022 will be $14 or $15, depending on the number of employees and the size of the business. 2019: $12. *>
Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. 297 0 obj
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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. 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 Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. The increase, of 40 cents for workers at the city's large employers, comes at a time. Instead of printing out pages of mandatory Illinois and Federal labor law posters, you can purchase a professional, laminated all-in-one labor law poster that guarantees compliance with all Illinois and federal posting requirements. If the tipped . 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 minimum wage for workers at companies with more than 20 employees increases to $15 per hour starting July 1 under an ordinance passed in. The law also requires employers to pay overtime to employees who work more than forty hours in a week. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. Your email address will not be published. And, the rate is higher outside the city limits. With these new measures, the City is reaffirming its commitment to our talented workers and demonstrating why we are one of the nation's leaders in protecting workers' rights.". In Illinois, tipped employees may make $7.20 per hour in 2022. Vaccines protect you and the people around you, reducing the spread of COVID-19. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. But if they don't make $15 per hour on average overall, employers must make up the difference to reach that new citywide minimum wage. "u$G Df&CA$g`@8/`5Lg`Z Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. uJ(\cZYy:8-_Sg8W8gjcAn~k_65c%M'6nr Z1?vc33D$(MTfJ/`\b9{iN&D!w5v2eO>(p_MO%~|sp^0C9d20eeR1=7{Z#*"ng5Z03,>,b[]/2.R7Bw1}#aXYk(Ri8s4T7io7. R wy8yM`?xioUrX/ !f
For smaller businesses with 4-20 employees, the increase is delayed until 2022. f you want to learn about Arkansas minimum wage, you can click on it. State Minimum Wage Rates 2022 vs. 2023. The new ordinance also requires employers to pay younger workers more than the minimum wage. For more information, check out the Illinois Department of Labor and the Cook County Minimum Wage Ordinance. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. By this date, the notices must be posted in multiple languages. The minimum wage for workers under-18 in Illinois who work less than 650 hours in a calendar year is $8.50. But how much money could you get? The Illinois minimum wage is scheduled to increase to $12-an-hour on January 1,. These recommendations. Help us keep Minimum-Wage.org up-to-date! For tipped workers, the minimum wage shall be $9.24 per hours plus tips for employers with 21 or . This year, the Consumer Price Index exceeded this cap and the minimum wage was frozen. In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. 159 0 obj
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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.". Businesses with fewer than 21 employees are required to pay employees at least $14.50 an hour. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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. It also increases the minimum wage for young employees employed by religious institutions. 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. 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). 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? Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. 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. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. Save my name, email, and website in this browser for the next time I comment. If the citys unemployment rate meets or exceeds 8.5% in a given year, there will be no minimum wage increase the next year. 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. Its expected to increase by less than 3%, a tenth of that amount. The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. However, Chicagos minimum wage will rise to $15 per hour in 2022, and its expected that the increase will continue to rise toward that number. "Employers need to know that these wage increases are not optional. Groups like the Fight for $15 have pushed for higher minimum wages for years. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage 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. hb``e``fc```rb@@,&+MW(1`fbea9*C[$0qeY#![O
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v30BT1 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. Alaska Minimum Wage 2023 (right information). 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. The minimum wage increase provides a multitude of benefits, from a better livelihood for workers to enhanced stability for employers when it comes to recruitment and retention, said Kenneth J. Meyer, BACP Commissioner. Ultimately, this will be a boon for low-income workers in Chicago. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. State 2022 Minimum Wage 2023 Minimum Wage (effective 1/1/23 except as noted) Alabama : $7.25 (Federal, no state minimum) Alaska : $10.34: $10.85: Arizona : $12.80: $13.85: Arkansas : $11.00 : California : $15.00 for businesses with 26+ employees; $14 for businesses with 25 or fewer employees: All Domestic Workers must receive at least the $15.40 minimum wage. The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. For larger businesses with 21 or more employees, the minimum wage increases annually according to the Consumer Price Index or 2.5%, whichever is lower, until reaching $15 per hour in 2021. 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. It will reach $15 on July 1, 2023. Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. Copyright 2023 NBCUniversal Media, LLC. In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. 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. My Future. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees. They plan to pay even more at all three of her locations to stay competitive and keep 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. Copyright 2023 WLS-TV. 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? Vaccines protect you and the people around you, reducing the spread of COVID-19. The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. 9
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Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. Required fields are marked *. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. Chicago's minimum wage is going up Thursday. "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.". The citys minimum wage increases are laid out in its minimum wage ordinance. 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. 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. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. endstream
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Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense. %%EOF
Chicago minimum wage 2023, what is? Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. They must be paid at least $12 an hour. Lightfoot said the move is a victory for working class employees who are the backbone of the city. Learn more atLearn more at Chicago.gov/COVIDVax. 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. Is any of our data outdated or broken? All Rights Reserved. BK
Unfortunately, the Consumer Price Index this year exceeded that, Fox said. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. endstream
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Chicago minimum wage is tiered for large and small businesses. 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. (Jose M. Osorio / Chicago Tribune). 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. 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. In addition to Chicago, there are other localities in Illinois that have passed municipal minimum wage legislation. "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. You have probably asked yourself this question before. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster Industries covered by the ordinance are health care, hotels, restaurants, retail, warehouses, manufacturing and building services. In 2022, they must make $9.25 per hour. This increase will hit most large employers in Chicago. ABC 7s I-Team breaks down the numbers for you. 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. 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. The minimum wage for medium-sized employers increased 50 cents this year. All rights reserved, This Map Shows Exactly How the City of Chicago Voted for Mayor in the 2023 Election, Report: Jalen Carter Arrest Warrant Issued for Racing Car, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? July 1, 2022. It has not increased since 2009. So she's looking forward to the increase. Content 2023 Minimum-Wage.org, all rights reserved. Call the Office of Labor Standards at 312-774-2211 or email bacplaborstandards@cityofchicago.org. Chicago's current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with . 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. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. Read more: Does Marshalls Take Apple Pay? It is set to increase Jan. 1, 2023, to $13 and $7.80, respectively. Until this year, the minimum wage for larger employers in Chicago increased $1 per year. 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). workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. Contact. 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. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. Our previous post Alaska Minimum Wage 2023 (right information) We recommend that you also read our article titled. 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