The ordinance also sets a cap of 2.5% on annual increases, so the minimum wage in Chicago cant go above that. %%EOF The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. 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. 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. In another change, employees will need to earn less than $29.35 per hour or $56,381.85 per year to gain protection under the Fair Workweek Ordinance. The cohort of workers covered under the ordinance will also expand. Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. 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. 126 0 obj <> endobj Its expected to increase by less than 3%, a tenth of that amount. State Minimum Wages | Industries covered by the ordinance are health care, hotels, restaurants, retail, warehouses, manufacturing and building services. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. 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 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. She is reminding that employers must comply with the change. "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.". 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. 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. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. Mayors Press Office 312.744.3334 press@cityofchicago.org, Elisa Sledzinska 312.744.1973 Elisa.Sledzinska@cityofchicago.org. July 1, 2022. By 2025, after increasing on schedules that vary by size and other factors, all businesses and workers in Chicago will have the same minimum wage citywide. Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. But July 1, that rate is set to increase, according to officials. 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. Vaccines protect you and the people around you, reducing the spread of COVID-19. But how much money could you get? Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. %PDF-1.6 % Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. 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. 183 0 obj <>stream Either way, this law goes into effect next month, and itll take time to see just how well it works (or doesnt) for everyone involved. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four 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. 2023 minimum wage announcement poster. In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. And. The citys minimum wage is not just a piece of legislation, it also influences employment. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. It's $14 . "Employers need to know that these wage increases are not optional. The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. 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. Fully updated for March 2017! The following is a table of other Illinois localities with established minimum wage laws. 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. Chicagos minimum wage increases each July 1st. Restaurant workers and others who receive tips will now get a base rate of $9 per hour. Required fields are marked *. Federal Minimum Wage | Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Companies with wage floors at $15 or higher include big employers like Target, Costco and Amazon. 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. Chicago minimum wage will increase by 40 cents to $15 per hour. 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. hbbd```b``"H; 5Dc0y L'`2D2 m_&II1`Y#)V"= 6R*Dr L W,R $8rF` !v So she's looking forward to the increase. Copyright 2023 NBCUniversal Media, LLC. 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 raise Chicago's minimum wage by $0.50 per hour. That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%. The law also requires employers to pay overtime to employees who work more than forty hours in a week. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. 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\ Unfortunately, the Consumer Price Index this year exceeded that, Fox said. Heres what you need to know. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. If they fail to do so, they can be fined between $500 and $1,000 per day. 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. Your email address will not be published. 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. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. 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. In addition, it will also affect tipped employees. By this date, the notices must be posted in multiple languages. 2023: $15. 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. My Future. If the tipped . %PDF-1.6 % 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. 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? Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. If a tipped workers wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. 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. Vaccines protect you and the people around you, reducing the spread of COVID-19. Mayor Lightfoot has worked tirelessly to ensure that Chicagos workers, especially the most vulnerable, are protected under Chicagos labor laws. 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. But, what will it cost you? The minimum wage for small businesses continues to increase towards $15 per hour by 2023. (MCMF) mobile app,which is aresource designed to help teens and young adultseasily find out-of-school programs, events, resources, jobs, and more. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. For businesses. 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). All Chicago worker protections are enforced by the BACP Office of Labor Standards (OLS). 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