The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Even if you work outside of Chicago, you may be paying less than the minimum wage. In the coming years, those rates will continue to increase. Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. 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. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. July 1,2022 Effective Date. 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. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. The law also requires employers to pay overtime to employees who work more than forty hours in a week. The OLS is dedicated to promoting and enforcing Chicagos labor laws, including Minimum Wage, Paid Sick Leave, Fair Workweek, and Wage Theft Ordinance. Contact. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. }y>"e't:ikz1(ET&Mj^|M2FeI;oWym?RV:G\d~~QgqVpVx!nMr{:fBbZ[A >[m;!av$voedkubG|D,Wql1.DUYEj-xkI='aZ?]aoe!NvJR6l9c0'(!t,x|?N_{yuy#olII>]vd$Z#{gh?ECc+Rv-H Last updated June 7, 2022. However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. Employers who violate the notices may face fines of $500 to $1,000 per day. Starting July 1, the minimum wage for tipped employees will rise to $7.40. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. Illinois' statewide minimum wage increased to $11 on Jan. 1 and will continue to gradually rise until it reaches $15 at the beginning of 2025. The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. Under Illinois law, the minimum wage for workers aged 18 and over is $11.00 per hour as of January 2021. 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. 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. 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. 312 0 obj <>stream Until this year, the minimum wage for larger employers in Chicago increased $1 per year. 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 city estimates that more than 400,000 people will be affected by the minimum wage increase. 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 The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. For more information, check out the Illinois Department of Labor and the Cook County Minimum Wage Ordinance. 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. All Domestic Workers must receive at least the $15.40 minimum wage. Several factors influence the minimum wage in Chicago, including the economy and the number of jobs available. endstream endobj 271 0 obj <>stream Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. The citys Fair Workweek Ordinance, which went into effect in 2020, requires large employers in certain industries to give workers advance notice of their schedule and pay them for last-minute changes. The Illinois minimum wage is scheduled to increase to $12-an-hour on January 1,. It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. Ultimately, this will be a boon for low-income workers in Chicago. endstream endobj 270 0 obj <>stream (Jose M. Osorio / Chicago Tribune). 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. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. %%EOF hb``e``fc```rb@@,&+MW(1`fbea9*C[$0qeY#![O j L^)P v30BT1 The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. Read more: Does Marshalls Take Apple Pay? On Behalf of Billhorn Law Firm | Apr 24, 2022 | Wage & Hour Laws. It depends on what you do and how many employees there are at your company. 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. Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. hmoH~lUM4^=jld;Uof $F@.Y ). "Now I will have to keep going higher and higher than the minimum wage because a lot of people don't want to work for minimum wage," Owner Laricia Baker told the I-Team. These recommendations. Your email address will not be published. The new ordinance also requires employers to pay younger workers more than the minimum wage. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. Call the Office of Labor Standards at 312-774-2211 or email bacplaborstandards@cityofchicago.org. Mayors Press Office 312.744.3334 press@cityofchicago.org, Elisa Sledzinska 312.744.1973 Elisa.Sledzinska@cityofchicago.org. Beginning July 1, 2022, employers in Chicago must post a Minimum Wage Notice and Fair Workweek Notice. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. rates that apply to employees of different classes of company who work Chicago. It will continue to increase every year, linked to the Consumer Price Index and capped at 2.5%. The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. Lightfoot said the move is a victory for working class employees who are the backbone of the city. Copyright 2023 WLS-TV. The ordinance also sets a cap of 2.5% on annual increases, so the minimum wage in Chicago cant go above that. Fully updated for March 2017! You can find a list of highest and lowest minimum wage rates here . Chicago minimum wage is tiered for large and small businesses. To file a labor standards complaint, workers can use the CHI 311 system (call 3-1-1, use the CHI311 mobile app, or visit311.chicago.gov) or complete aComplaint Form. "We were the first city in the state to get to $15 and its going up today," she added. 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. But, what will it cost you? 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. 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. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. BK Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. 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. Businesses with fewer than 21 employees are required to pay employees at least $14.50 an hour. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL 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. Last year, the minimum wage was $11 and $6.60, respectively. 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. So, if youre wondering: what is minimum wage in Chicago 2022? 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. Heres what you need to know. endstream endobj startxref Alaska Minimum Wage 2023 (right information). On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Youths who work over 650 hours per year are entitled to the regular minimum wage. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. Here's Why, Wages Up to $147,000 Are Currently Taxed for Social Security. To learn about Chicagos labor laws, visitChicago.gov/LaborStandards. Its expected to increase by less than 3%, a tenth of that amount. 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. 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. 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. 126 0 obj <> endobj July 1, 2022. Fight for $15 protesters rally and chant "We're fired up, can't take it no more," in Chicago on April 14, 2016. are struggling with the effects of sky-high inflation. 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. Chicagos minimum wage increases each July 1st. 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. The departments investigators can answer questions and look into whether a case may need to be investigated more formally, Fox said. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Instead you can report it. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the 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. New minimum wages in effect July 1 for Chicago, Cook County . Copyright 2023 NBCUniversal Media, LLC. "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. The citys minimum wage is not just a piece of legislation, it also influences employment. It's $14 . endstream endobj 127 0 obj <. 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