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? 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. Contact. Employees need to earn less than $29.35 per-hour or $56,381 a year to gain the protection. Is any of our data outdated or broken? We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. 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. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. Businesses must have at least 50 employees who are eligible to be covered under the ordinance for the law to apply. Until this year, the minimum wage for larger employers in Chicago increased $1 per year. What will your paycheck look like? Save my name, email, and website in this browser for the next time I comment. In Illinois, tipped employees may make $7.20 per hour in 2022. 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. Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. They must be paid at least $12 an hour. BACP will host free informational webinars to prepare employers for the upcoming changes to Chicagos Labor Standards Laws. What is minimum wage in Chicago 2022? 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. And. Youth workers in Chicago are to be paid a minimum wage of $12.00 per hour, with an overtime rate of $18.00 per hour once 40 hours a week has been surpassed. Starting July 1, the minimum wage for tipped employees will rise to $7.40. For instance, employees under the age of 18 must be paid $12 an hour. 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. 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. f you want to learn about Arkansas minimum wage, you can click on it. *> 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. Groups like Fight for $15 have been lobbying for those increases for years, and a handful of large retailers have already boosted wages to that level or higher. hb``e``fc```rb@@,&+MW(1`fbea9*C[$0qeY#![O j L^)P v30BT1 Some local jurisdictions have higher minimum wage rates and different labor rules than Washington state. }y>"e't:ikz1(ET&Mj^|M2FeI;oWym?RV:G\d~~QgqVpVx!nMr{:fBbZ[A >[m;!av$voedkubG|D,Wql1.DUYEj-xkI='aZ?]aoe!NvJR6l9c0'(!t,x|?N_{yuy#olII>]vd$Z#{gh?ECc+Rv-H Lightfoot said the move is a victory for working class employees who are the backbone of the city. gRsg[sH~3\C? But that doesnt mean that businesses in the city dont have real concerns. 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. Groups like the Fight for $15 have pushed for higher minimum wages for years. View Sitemap. Another exception is for young employees those 24 or younger of religious corporations or organizations. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. The minimum wage is set by the citys ordinance. The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. State Minimum Wages | The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. CHICAGO Today, Mayor Lori E. Lightfoot and the Chicago Department of Business Affairs and Consumer Protection (BACP) announced the annual scheduled increase in Chicagos minimum wage and a scheduled enhancement of the Fair Workweek ordinance requirements. Our city's labor laws, including the minimum wage, are an important backbone of our city's economy and provide stability to working families. For smaller businesses with 4-20 employees, the increase is delayed until 2022. The new ordinance also requires employers to pay younger workers more than the minimum wage. 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. The Minimum Wage ordinance in Chicago currently provides that workers, defined as Covered Employees, shall earn $14.50 per hour if they work for an employer that has from 4 to 20 employees and $15.40 for an employer that has 21 or more employees. 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. And, the rate is higher outside the city limits. endstream endobj startxref 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 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. Companies with wage floors at $15 or higher include big employers like Target, Costco and Amazon. Alaska Minimum Wage 2023 (right information). The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. You can find a list of highest and lowest minimum wage rates here . Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. 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. SeaTac: $19.06/hr. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Chicago minimum wage is tiered for large and small businesses. 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. 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. New minimum wages in effect July 1 for Chicago, Cook County . 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\ %PDF-1.6 % And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. 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: For more information, check out the Illinois Department of Labor and the Cook County Minimum Wage Ordinance. Our previous post Alaska Minimum Wage 2023 (right information) We recommend that you also read our article titled. Read more: Does Marshalls Take Apple Pay? The cohort of workers covered under the ordinance will also expand. Copyright 2023 WLS-TV. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. Mayor Lightfoot has worked tirelessly to ensure that Chicagos workers, especially the most vulnerable, are protected under Chicagos labor laws. The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower. For businesses. 0 2019: $12. 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 $15 an hour as well. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. "We estimate they're close to 500,000 workers, that this increase will affect and help uplift and each and every one of them should see that increase in their next paycheck," said the deputy chief of staff for the Chicago Federation of Labor. (MCMF) mobile app,which is aresource designed to help teens and young adultseasily find out-of-school programs, events, resources, jobs, and more. hb```R ce`axpSIi~r[?; (J30X03g'w5$: 3g0`[!WX?q;l^ J`G[( H rates that apply to employees of different classes of company who work Chicago. In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped 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? The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago's youth looking for summer employment opportunities. It has not increased since 2009. In Chicago, this means a fifty-cent increase for employees. 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 federal minimum wage rate was raised to $7.25/hour in 2009. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. State Minimum Wage Rates 2022 vs. 2023. Chicagos minimum wage is now at $15 per hour, four years before the state is set to reach that bench mark. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. 2020: $12.75. 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. But how much money could you get? 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. Here's Why, Wages Up to $147,000 Are Currently Taxed for Social Security. That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. endstream endobj startxref Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. As of July 1, 2022, the Minimum Wage to be paid under City contracts or concessionaire agreements pursuant to the Order is $16.00 per hour. 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. 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 increase will affect tipped employees as well. Chicago's minimum wage is going up Thursday. 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. Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme. CHICAGO (WLS) -- The minimum wage in Chicago and suburban Cook County increased Friday. 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. Usage is subject to our Terms and Privacy Policy. ). Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; Youth Workers . Chicago's current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with . If a tipped workers wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. 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. 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. 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? Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. 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. 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. Vaccines protect you and the people around you, reducing the spread of COVID-19. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. Read more: Does Marshalls Take Apple Pay? On Behalf of Billhorn Law Firm | Apr 24, 2022 | Wage & Hour Laws. 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. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. 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. Those smaller businesses will then continue to see minimum wage increase by 50 cents per year to reach $15 an hour by 2023. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher.