Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. This year the . By comparison, employment decreased 1.2 percent for Hispanic males, and dropped 2.5 percent for white males in the same age and education categories. Subscribe to our blog for the latest employment law news. Reflecting on the River Forest Village Boards unanimous vote to opt out of the Cook County ordinances, Oak Park River Forest Chamber of Commerce President Cathy Yen commented that small businesses operate on extremely thin margins, [which] mean there is little excess profit that can be reallocated to employee salaries, according to the Chicago Tribune. Alsip 2. Published January 1, 2022. Fair Workweek Ordinance In Chicago, enhancements to the Fair. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Last updated June 7, 2022. In Illinois, the minimum wage is currently set at $8.25. Cook County Government. July 1, 2022 Minimum Wage. Cook County Minimum Wage (December 2022) Effective January 1st, 2023, the minimum wage in Cook County will increase to $7.80 per hour for tipped workers. Any time worked in 2022 must reflect the new $12 an hour minimum wage. Officials in municipalities that voted against the Cook County wage hike and sick leave mandates have expressed concern for the job-killing effect they could have, especially given that many of these towns are near counties that have not increased the minimum wage or imposed new sick leave mandates. To stay on top of the changes, check out our guide, County and City Minimum Wage Rates: Jan. 1, 2023. Bensenville 8. Use the interactive map to find the minimum wage for your county or metropolitan area. Chicago passed a minimum wage ordinance in 2014. The black unemployment rate in Illinois is more than double the states jobless rate for white residents. A study released in December 2015 by University of California, San Diego Assistant Professor of Economics Jeffrey Clemens reveals that minimum wage increases between 2006 and 2012 reduced employment for people ages 16 to 30 with less than a high school diploma by 5.6 percentage points. The minimum wage increase rate is capped at no more 2.5% per year and will not rise if Cook County experiences unemployment of at least 8.5% the previous year. The minimum wage in Cook County on July 1 will increase for both non-tipped workers and tipped workers, a press release from the county states. The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry. They will be based on percentage increases determined by the . By comparison, employment decreased 1.2 percent for Hispanic males, and dropped 2.5 percent for white males in the same age and education categories. Cook County to Raise Minimum Wage to $13.35 Starting July 1. In 2019, Illinois Gov.. Moreover, the income gains for low-wage workers who kept their jobs were mostly due to the strong local economy, with only 25 percent of those gains attributable to the hike in the minimum wage. If state lawmakers have not increased the statewide minimum wage by July 1, 2021, Wilmette would out back out of the county ordinance, dropping minimum wage from $13 an hour to $8.25 an hour. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 The hourly minimum wage in Cook County, Illinois, will increase to $13.35 for nontipped employees and $7.40 for tipped employees effective July 1, according to the county's minimum wage webpage on May 31. . Sec. And the Glenview board of trustees voted 4-1 on June 8 to opt out of Cook Countys minimum wage hike and sick leave ordinances, according to the Chicago Tribune. Chicago passed a similar sick leave ordinance in 2016. $8.75 (for employers offering specified health benefits) $9.75 (for all other employers) CHICAGO - The minimum wage in Illinois is set to increase at the start of 2023. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. 42-13) and rules (Sec. Next year on January 1, that will increase to $10.50. Editor/Writer . The Daily Herald reported that the Des Plaines City Council voted to opt out of the ordinances June 19, reversing a previous decision to go along with the laws. The minimum wage applies to all employees except agricultural workers ( $8.00 per hour is the minimum wage for most agricultural workers), members of a religious order, workers being trained in certain educational, nonprofit, or religious organizations, and outside sales people. 42-13) and rules (Sec. The employer maintains a business facility in Cook County or is issued a business license by Cook County. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. In October 2016, the Cook County Board also passed an ordinance mandating that employers in Cook County provide each employee with one hour of sick leave for every 40 hours worked, up to 40 hours of paid sick leave per year, for employees who have worked at least 80 hours within a 120-day period. Other towns that have opted out include: Hoffman Estates, Palatine, Rolling Meadows, Elk Grove Village, Hanover Park, Streamwood, Buffalo Grove, Arlington Heights, Barrington, Mount Prospect, Rosemont, Schaumburg, Wheeling, River Forest, Western Springs, Orland Park and Palos Park. The Washington Post summarized the study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase. Intake interviews are by appointment only, please call or email to make an intake appointment. With economists forecasting prolonged inflation, its likely the Federal Reserve will keep hiking interest rates. This guide is intended for market awareness only. Cook County Legislative Committee Chairman John Daley described the minimum wage hike and sick leave legislation as the moral and right thing to do when the Cook County Board passed the measures in October 2016, according to the Chicago Tribune. 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. Cook County Legislative Committee Chairman John Daley described the minimum wage hike and sick leave legislation as the moral and right thing to do when the Cook County Board passed the measures in October 2016, according to the Chicago Tribune. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy Schaumburgs Woodfield Mall is a shopping destination with dozens of stores and eateries. The mandate also requires employers to allow employees to carry over to the next year half, or up to 20 hours, of their unused, accrued sick leave. All Rights Reserved. It is not to be used as a substitute for legal advice or counsel. $12.75 (60) $6.38 (30) $6.37 . Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. . After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. Municipal leaders have expressed concerns about the anti-competitive, job-killing effects of Cook Countys minimum wage increases and new sick leave law and are using home rule authority to exempt their communities from the requirements. The head of government relations for Jewel-Osco grocery stores told the Tribune the grocery chains costs had shot up for its 35 Chicago stores after the city increased its minimum wage, causing Jewel-Osco to hire 5 percent fewer workers the year after the law went into effect. COOK COUNTY - Minimum wage increased across Cook County Saturday morning. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. Cook County minimum wage will not increase July 1, 2021, due to unemployment numbers. Interestingly, Chicagos and Cook Countys ordinances provide that when unemployment in Chicago or Cook County, respectively, reaches 8.5 percent or higher, the minimum wage will not increase the following year. Employers know that the new year brings minimum wage increases for dozens of jurisdictions across the U.S. On Jan. 1, 2023, 40 counties and cities will increase their minimum wage rates. State. The Wilmette/Kenilworth Chamber of Commerce, which represents many small businesses, urged the village board to opt out, explaining that [t]he majority of respondents [to the chambers survey of local businesses] believe they would have to raise prices in order to comply with a mandatory minimum wage increase and mandatory paid leave and that [p]roviding and tracking paid leave for full and part-time employees will cause a significant financial hardship for the majority of respondents., Reflecting on the River Forest Village Boards unanimous vote in March to opt out of the Cook County ordinances, Oak Park River Forest Chamber of Commerce President Cathy Yen commented that small businesses operate on extremely thin margins, [which] mean there is little excess profit that can be reallocated to employee salaries, according to the Chicago Tribune. Living Wage Effective January 1, 2023 until June 30, 2023, the living wage rate is $16.50 per hour. Of these, 26 raised their minimum wages on January 1. i Table 2 shows these New Year's Day increases. This site is protected by reCAPTCHA and the Google Privacy Policy 5 Although the county minimum wage exceeds the state rate, the state minimum cash wage (MCW . Suite 400 Midyear 2022 Minimum Wage Increases. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices., Minimum wage hikes can drive companies out of business. Cook County. The minimum wage for non-tipped workers remains $13.35. starts here. 6-105-030 Minimum hourly wage in occupations receiving gratuities. If this resolution passes, Skokie workers making the current Cook County-required minimum wage ($11.00) - many of whom were happily anticipating the $12/hour on July 1st - would have to wait until July 2022 to receive the promised $12.00. Effective January 1, 2023, the minimum wage for tipped workers increases to $7.80, in alignment with the Illinois State minimum wage. The minimum wage as of July 1, 2022 will be: All Rights Reserved. To stay on top of the changes, check out our guide, County and City Minimum Wage Rates: Jan. 1, 2023. 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 . Cook County issues notice to Minimum Wage Ordinance, Office of the Independent Inspector General, CARES Act Information for Local Governments, Freedom of Information Act for Offices Under the President, The employee has worked for an employer in Cook County for at least 2 hours in any two-week period, and, The employer has four or more employees (or the employee is a domestic worker) and. The Ordinance also applies even those who may be working within the County to make deliveries or driving within the County limits. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. Brookfield 13. 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. Suite 1130, Illinois labor law allows tipped employees to be paid a lower cash wage than the standard Illinois minimum wage by their employers, as up to $3.30 in tips earned per hour can be deducted from their wage as a "Tip Credit". Increases in minimum wages can drive some firms out of business entirely. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. Again, this increase may not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. 6-105-040 Overtime compensation. 2023 CBS Broadcasting Inc. All Rights Reserved. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. Cook County, which has its own minimum wage ordinance, will also increase its minimum wage on July 1, from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped. The law reduces the rate to $14 an hour for businesses with 20 or fewer employees, but even they will be . *2023 Poster is shipping now. Raising the minimum wage and mandating paid sick leave might sound pro-worker, but leaders in many municipalities in the Chicago area have said these measures could have the opposite effect and result in fewer jobs for residents in their communities. Pursuant to the MWO (Sec. In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . Blue Island 10. Decisions of the Commission on Human Rights, Office of the Independent Inspector General, CARES Act Information for Local Governments, Freedom of Information Act for Offices Under the President, Living Wage Ordinance Protocol (122.31 KB). Effective Jan. 1, the statewide Illinois minimum wage will rise to $13 per hour for non-tipped employees ages 18 and . The minimum wage is $6.60 for tipped employees. Interestingly, the Chicago and Cook County ordinances provide that when unemployment in Chicago or Cook County, respectively, reaches 8.5 percent or higher, the minimum wage will not increase the following year. For Illinoisans, this presents an unpleasant tradeoff: continued high inflation or an increase in unemployment because of rising interest rates. The minimum wage for tipped employees in suburban Cook County will increase to $7.40 per hour. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; . The state minimum wage is currently $12 an hour. According to a 2011 study by the Employment Policies Institute, for every 10 percent hike in the minimum wage, employment declined 6.5 percent for 16-to-24-year-old black males without a high school diploma. Ordinance No. As of January 1, 2023, the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wage for non-tipped workers remained $13.35 (which was effective per County Ordinance on July 1, 2022). July 1, 2022; Evanston: $12.00 per hour: $13.00 per hour: $13.00 per hour: $13.35 per hour: Chicago: $13.00 per hour: $14.00 per hour: $15.00 per hour: . But Leslie Shedd, vice president of the National Restaurant Association, said in an emailed statement to The Associated Press, A study in one of the wealthiest cities in the U.S. does not reflect the impact drastic minimum wage increases could have across the country and should not be relied upon as this discussion continues especially considering other studies have refuted these results.. Chicago, Illinois Local Minimum Wage for 2022, 2023 While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage rates that apply to employees of different classes of company who work Chicago. Effective Jan. 1, the minimum wage for tipped workers increases to . 2022 to $7.20. Concerns for the effect on local businesses have played a significant part in many opt-out discussions. If a suburb opted-out, the Illinois minimum wage applies. Emmanuel Elone . who continue to work after their work-study has ended or becomes exhausted must also be paid at the Chicago and Cook County minimum wage. Illinois Check this list carefully to see if any of these labor posters are relevant to your business. The state's $10 per hour minimum wage is set to rise by $1 on Jan. 1, 2022, until it hits $15 per hour in 2025. This ordinance requires that all employers who contract with Cook County government to provide labor or who operate on property in Cook County that receives a Class 6B, Class 8 or Class 9 property tax incentive pay their employees not less than a living wage as determined annually by Cook County's Chief Financial Officer. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. $9.45 Cash Wage. Those who did work had fewer hours than they would have without the wage hike., A study released in June by researchers from the University of California, Berkeley, however, found the hike in Seattles minimum wage had no effect on employment in Seattles food services industry. $14.00. Nevada. And while a large chain might be able to absorb the costs of a minimum wage hike by hiring fewer new employees, these costs impose greater hardships on small businesses. The Wages set out in Sections 42-13 and 42-14 are subject to the overtime compensation provisions in the Cook County Minimum Wage Law, with the exception that the definitions of "Employer" and "Employee" in this chapter shall apply. 0 Chicago Office | Illinois Policy Moreover, the income gains for low-wage workers who kept their jobs were mostly due to the strong local economy, with only 25 percent of those gains attributable to the hike in the minimum wage. 1-Year Compliance Plan Best value The easiest way to stay compliant. In Cook County, young black residents in particular suffer from high rates of joblessness, with more than one-third of the countys black 20-to-24-year-olds out of both school and work in 2015, according to a June 2017 report by researchers at the University of Illinois-Chicago. No. MIT labor economist David Autor said in a statement reported by the Los Angeles Times, [The study] suggests we should be proceeding cautiously when we start pushing minimum wages into ranges where they are pretty significant., The June 2017 study echoed the 2016 report by University of Washington researchers on the effects of the first phase of Seattles increase in its minimum wage, when the rate increased to as much as $11 an hour from $9.47 an hour. After 2020, the county minimum wage will be subject to increases based on the CPI. As of July 1, 2020, the Chicago minimum wage is $13.50 per hour for employers that have four to 20 workers and $14 for employers that . The minimum wage debate has captured Illinois headlines this summer as local ordinances to hike the minimum wage and mandate paid sick leave took effect in Cook County July 1. These range from $12.32 in Santa Fe, New Mexico, to $17.54 in SeaTac, Washington. The minimum wage in Cook County outside of Chicago will remain at $13 per hour because the unemployment rate in 2020 was greater than 8.5%, officials said. These updated notices should also be posted with other legally-required posters. Tipped employees will increase from $7.20 an hour to $7.40 an hour. Federal minimum wage applies $7.25 $16.10 No specified minimum wage Filter states Minimum wage or equal to Increased the minimum wage in the last Updated minimum-wage laws in the last Have upcoming minimum-wage increases Use automatic increases (indexing) Contain areas with different minimum wages Federal Minimum wage Tipped wage While the federal minimum wage is $7.25 per hour, and Illinois statewide minimum wage is currently $8.25 per hour, the city of Chicago and Cook County have each hiked their minimum wages even higher. Coverage depends on the physical location (in Minneapolis) of the employee while performing work, regardless of the employee's age. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. $4.75 Tip Credit. Rising costs of goods and services has cut Illinoisans pay by $2,230 on average. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Federal and State Poster set City Poster Only $ 18.35 Quantity Add to cart Zoom image Shipping Info 60-day returns Ships within 48 hours Description Minimum wage hikes can stifle job creation and competitiveness, and raise consumer prices, A June 2017University of Washington report on the effects of Seattles minimum wage hike found a 9 percent decrease in hours worked by lower-wage workers and a reduction of over $100 million per year in total payroll for such jobs after the citys wage hike. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. Optional Illinois Labor Law Posters 6 PDFS. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Approximately 1.4 million Illinois residents earn the state's minimum wage. The Chicago minimum wage will increase to $15.40 per hour for employers with 21 or more employees and to $14.50 per hour for employers with 4-20 employees. But wage hikes have a worse effect on lower quality restaurants: A $1 increase in the minimum wage leads to a 14 percent rise in the likelihood a 3.5-star-rated (i.e., median-rated on Yelp) restaurant will close, according to the study. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. Complaint forms and additional informationcan be found online. As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. Latest News more. Published July 9, 2022 . GovDocs, Inc. The ordinance states that in each year, the highest minimum wage governs in Cook County, whether that is the federal minimum wage, the state minimum wage or the countys minimum as set forth in the new law. 42-13) and rules (Sec. For this reason, more than 50 municipalities in Cook County more than one-third have opted out of the pending minimum wage hike and sick leave mandate, according to the Chicago Sun-Times. Each year the minimum wage increases according to a formula set by the Ordinance. Starting July 1, minimum wage in Chicago will increase by $1 to $14 per hour for employers with more than 21 workers. It is not surprising that so many municipalities are rejecting ordinances that can make it even harder for businesses to stay afloat, and to provide job opportunities for residents who need them. 802 South 2nd Street | Springfield, IL 62704 But wage hikes have a worse effect on lower quality restaurants: A $1 increase in the minimum wage leads to a 14 percent rise in the likelihood a 3.5-star-rated (i.e., median-rated on Yelp) restaurant will close, according to the study. Unlike last year, where the unemployment rate was greater than 8.5%, the. First published on June 1, 2022 / 6:19 PM. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. J.B. Pritzker signed legislation in 2019 putting . The minimum wage is $6.60 for tipped employees. State minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). 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