Mayors Press Office 312.744.3334 press@cityofchicago.org, Elisa Sledzinska 312.744.1973 Elisa.Sledzinska@cityofchicago.org. endstream
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These recommendations. However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Deerfield-based Walgreens announced last year it would raise starting wages to $15 an hour for all workers by November of this 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. 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. Chicago's minimum wage is going up Thursday. Youths who work over 650 hours per year are entitled to the regular minimum wage. And for . The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower. Several big measures are going into effect July 1 in Chicago, one of them being an increase in the city's minimum wage. 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. 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. Federal Minimum Wage | *>
While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage 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. According to state law, teenagers under the age of 18 must be paid at least Illinois' current youth minimum wage, which is $9.25. Groups like the Fight for $15 have pushed for higher minimum wages for years. July 1,2022 Effective Date. The city is raising its minimum wage every year, as mandated by law.
This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. Employees need to earn less than $29.35 per-hour or $56,381 a year to gain the protection. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. 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. The increase will affect tipped employees as well. The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. On January 1, the Illinois minimum wage increased to $12 an hour. The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. Lightfoot said the move is a victory for working class employees who are the backbone of the city. Let us know in a single click, and we'll fix it as soon as possible. And. ). But, what will it cost you? You have probably asked yourself this question before. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. And that $15 an hour would make a difference for so many, especially for . This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. Empowering Businesses and Protecting Consumers, An official website of the City of Chicago, Permit for Business ID and Advertising Signs, Vital Records from the Cook County Clerk's Office, AIC (Annual Inspection Certification) Inspections, Economic Disclosure, Affidavit, Online EDS, City Council Office of Financial Analysis, Community Commission for Public Safety & Accountability, Schedule an Appointment with a Business Consultant, Neighborhood Business Development Center (NBDC), Chicago's Minimum Wage Increase and Fair Workweek Changes Go Into Effect July 1, 2022, $15.40 for employers with 21 or more employees (including all domestic workers, regardless of the number employed), The minimum wage for tipped employees will be $9.24 for employers with 21 or more employees, and $8.70 for employers with 4-20 employees (employers must make up the difference between any tips received and the applicable minimum wage for non-tipped workers. In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. Your email address will not be published. 2023 minimum wage announcement poster. 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. 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. 297 0 obj
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If they fail to do so, they can be fined between $500 and $1,000 per day. 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. In 2022, they must make $9.25 per hour. She is reminding that employers must comply with the change. For smaller businesses with 4-20 employees, the increase is delayed until 2022. 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
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9BiN2z2&PDd`:fnBI![Tnw RJJjy-QBrQ&[koiN6tdGJdR~JF;.FmU*:ZEjkx85H7^u,':,[hX\)3B>L[rzbD0+Tt(=E]Y?r=eRI\5s\ In addition, it will also affect tipped employees. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. Chicago minimum wage is tiedred, meaning that businesses with 21 or more employees must pay more than businesses with four to 20 employees. Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense. Chicago minimum wage is tiered for large and small businesses. In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. 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. For more information, check out the Illinois Department of Labor and the Cook County Minimum Wage Ordinance. 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 federal minimum wage rate was raised to $7.25/hour in 2009. 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 endstream
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workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. The ordinance also sets a cap of 2.5% on annual increases, so the minimum wage in Chicago cant go above that. 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. View Sitemap. 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 must also make up the difference between any tips received and the minimum wage for non-tipped workers. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. 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. In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D
But how much money could you get? All Domestic Workers must receive at least the $15.40 minimum wage. It's $14 . 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? (MCMF) mobile app,which is aresource designed to help teens and young adultseasily find out-of-school programs, events, resources, jobs, and more. 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.". Content 2023 Minimum-Wage.org, all rights reserved. To learn about Chicagos labor laws, visitChicago.gov/LaborStandards. (en Espaol) 2023 minimum wage announcement in 13 languages. Learn more atLearn more at Chicago.gov/COVIDVax. Overtime pay equals time and a half of an employees regular pay rate. Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees. 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. "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.". And, the rate is higher outside the city limits. Businesses must have at least 50 employees who are eligible to be covered under the ordinance for the law to apply. The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. Notice effective on July 1, 2022. Even if you work outside of Chicago, you may be paying less than the minimum wage. 9
According to the Department of Business Affairs and Consumer Protection, Chicago minimum wage is not keeping pace with national inflation. Help us keep Minimum-Wage.org up-to-date! If you are not seeing the minimum wage increase in your paycheck and you think you should be getting it, you may want to avoid confronting your boss. They plan to pay even more at all three of her locations to stay competitive and keep workers. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. 2023: $15. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. Employers should consider updating their minimum wage posters to reflect the new rates. 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. Youths working less than 650 hours per year. Starting Friday, the umbrella of workers covered under the ordinance will expand and employers will be required to give those employees a few days additional notice of their schedules. "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. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. 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. 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. They must be paid at least $12 an hour. Domestic workers like those in childcare and home health services must be paid at least $15.40 an hour, regardless of the size of the company. "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. What will your paycheck look like? The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. 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. Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. CHICAGO (WLS) -- The minimum wage in Chicago and suburban Cook County increased Friday. 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. But July 1, that rate is set to increase, according to officials. That number comes from a 2019 report from the Illinois Economic Policy Institute that found a $15 minimum wage could directly affect over 430,000 workers in the city. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. By July 2022, Chicago businesses are required to post the new minimum wage notice in multiple languages. Df&CA$g`@8/`5Lg`Z Chicago's minimum wage is going up Thursday. That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%. It is set to increase Jan. 1, 2023, to $13 and $7.80, respectively. 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. At "Can't Believe It's Not Meat" in Old Town, owners said they already pay more than the minimum wage. Copyright 2023 NBCUniversal Media, LLC. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. The citys ordinance also extends certain sexual harassment protections for workers. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Get an Illinois all-in-one labor law poster. Who Qualifies . On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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. 312 0 obj
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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. The citys minimum wage increases are laid out in its minimum wage ordinance. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. 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. Required fields are marked *. 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. The departments investigators can answer questions and look into whether a case may need to be investigated more formally, Fox said. The minimum wage for workers under-18 in Illinois who work less than 650 hours in a calendar year is $8.50. Earlier this year, Illinois amended its minimum wage law to gradually increase the minimum wage for Illinois employees to $15/hour by 2025. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL Restaurant workers and others who receive tips will now get a base rate of $9 per hour. Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. Contact. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. Mayor Lightfoot has worked tirelessly to ensure that Chicagos workers, especially the most vulnerable, are protected under Chicagos labor laws. 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. Local Minimum Wage Rates. Starting July 1, the minimum wage for tipped employees will rise to $7.40. We must continue to invest in Chicagos workforce, and these scheduled updates to the Chicago minimum wage and fair workweek ordinance will continue to enhance the vibrancy and equity of our local economy., Chicagos new minimum wage and fair workweek changes will have a significant impact on Chicago workers and their families as we focus on a prosperous economic recovery, said Susan Sadlowski Garza, 10th Ward Alderwoman and Chairwoman of the Committee on Workforce Development. 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). 266 0 obj
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By this date, the notices must be posted in multiple languages. 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. Chicago minimum wage will increase by 40 cents to $15 per hour. Anyone . 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. Heres what you need to know. In addition to Chicago, there are other localities in Illinois that have passed municipal minimum wage legislation. 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. Retaliation is prohibited. 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 table below lists the current prevailing 2023 minimum wage rates for every state in the United States. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. This year and beyond, the minimum wage increase for large employers is pegged to the Consumer Price Index or 2.5%, whichever is lower. The minimum wage, its just, its fair, it gives people a living wage, said Andy Fox, the director of Chicagos Office of Labor Standards. All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. For instance, employees under the age of 18 must be paid $12 an hour. would raise starting wages to $15 an hour for all workers. Chicago's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. How That Could Change, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. July 1, 2022. 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. 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. The webinar, Employer Responsibilities Under Chicagos Minimum Wage Ordinance, will take place Tuesday, June 7, at 2:00 p.m. Additionally, the webinar, Employer Responsibilities Under Chicagos Fair Workweek Ordinance, will take place Thursday, June 9, at 2:00 p.m. To register for thewebinars, visitChicago.gov/BusinessEducation. Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme.
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