In Chicago, enhancements to the Fair Workweek Ordinance take effect, which require employers in covered industries to post work schedules with at least 14 days' notice. Scheduled changes are also coming to the citys Fair Workweek Ordinance, which requires employers in certain industries to give employees advance notice of their schedules and pay them for last-minute changes. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. 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. The ABC 7 I-Team found out who may and may not benefit, and breaks down the numbers in your paycheck. Chicago, Illinois Local Minimum Wage for 2022, 2023 While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage rates that apply to employees of different classes of company who work Chicago. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL hmoH~lUM4^=jld;Uof
$F@.Y "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. But that doesnt mean that businesses in the city dont have real concerns. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market. In the coming years, those rates will continue to increase. 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. By July 2022, Chicago businesses are required to post the new minimum wage notice in multiple languages. 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. 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. Your email address will not be published. Usage is subject to our Terms and Privacy Policy. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago's youth looking for summer employment opportunities. The citys minimum wage policies and exceptions can be complicated. 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? "That's a little more money you can buy groceries with," says Rosemary Coleman who is ready to see more money in her paycheck. The cohort of workers covered under the ordinance will also expand. 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. SeaTac: $19.06/hr. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. For more information, check out the Illinois Department of Labor and the Cook County Minimum Wage Ordinance. "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. This year, the Consumer Price Index exceeded this cap and the minimum wage was frozen. Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. All Chicago worker protections are enforced by the BACP Office of Labor Standards (OLS). 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. 297 0 obj
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Groups like the Fight for $15 have pushed for higher minimum wages for years. 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. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. Instead you can report it. The departments investigators can answer questions and look into whether a case may need to be investigated more formally, Fox said. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. But how much money could you get? "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.". New minimum wages in effect July 1 for Chicago, Cook County . The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. In Chicago, this means a fifty-cent increase for employees. 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. 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 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. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. The ordinance also sets a cap of 2.5% on annual increases, so the minimum wage in Chicago cant go above that. Required fields are marked *. 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). Industries covered by the ordinance are health care, hotels, restaurants, retail, warehouses, manufacturing and building services. 2022: $14.25. It depends on what you do and how many employees there are at your company. There are some exceptions: For example, tipped employees must make a minimum of either $9.24 for large employers or $8.70 for medium-sized employers. Contact. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster f you want to learn about Arkansas minimum wage, you can click on it. 183 0 obj
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The minimum wage for small businesses continues to increase towards $15 per hour by 2023. According to the Department of Business Affairs and Consumer Protection, Chicago minimum wage is not keeping pace with national inflation. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. "Employers need to know that these wage increases are not optional. It's $14 . would raise starting wages to $15 an hour for all workers. What is the minimum wage in Chicago? The minimum wage for medium-sized employers increased 50 cents this year. Let us know in a single click, and we'll fix it as soon as possible. 159 0 obj
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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. My Future. The more generous minimum wage may apply in these localities: Seattle: $18.69/hr. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. 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. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. For tipped workers, the minimum wage shall be $9.24 per hours plus tips for employers with 21 or . Your email address will not be published. Learn more atLearn more at Chicago.gov/COVIDVax. Employers must also make up the difference between any tips received and the minimum wage for non-tipped workers. The citys minimum wage increases are laid out in its minimum wage ordinance. Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme. Eligible youth can find qualifying opportunities by downloading the My CHI. Copyright 2023 WLS-TV. What is minimum wage in Chicago 2022? The minimum wage, its just, its fair, it gives people a living wage, said Andy Fox, the director of Chicagos Office of Labor Standards. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. *>
The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. While Illinois' state minimum wage is $13.00 per hour, Chicago has set its own, higher minimum wage How That Could Change, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Who Did Your Ward Vote For? 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. 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. If the citys unemployment rate meets or exceeds 8.5% in a given year, there will be no minimum wage increase the next year. Alaska Minimum Wage 2023 (right information). 312 0 obj
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If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. 2023: $15. 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. Anyone . Ultimately, this will be a boon for low-income workers in Chicago. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. 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). 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. 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. According to state law, teenagers under the age of 18 must be paid at least Illinois' current youth minimum wage, which is $9.25. The citys ordinance also extends certain sexual harassment protections for 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. "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. 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. Domestic workers like those in childcare and home health services must be paid the same, regardless of the size of the company. Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. Last year, the minimum wage was $11 and $6.60, respectively. %%EOF
What to Know About the Cook County Commissioner After Advancing to the Runoff Election. 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. In 2022, they must make $9.25 per hour. In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. Help us keep Minimum-Wage.org up-to-date! During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. What will your paycheck look like? The city is raising its minimum wage every year, as mandated by law. 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. View Sitemap. 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, 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. Vaccines protect you and the people around you, reducing the spread of COVID-19. No: Yes: 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. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. gRsg[sH~3\C? On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. 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. The minimum wage increase provides a multitude of benefits, from a better livelihood for workers to enhanced stability for employers when it comes to recruitment and retention, said Kenneth J. Meyer, BACP Commissioner. 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. The increase will raise Chicago's minimum wage by $0.50 per hour. You have probably asked yourself this question before. 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. 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