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. They plan to pay even more at all three of her locations to stay competitive and keep workers. Required fields are marked *. Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense. The cohort of workers covered under the ordinance will also expand. The minimum wage for workers under-18 in Illinois who work less than 650 hours in a calendar year is $8.50. On Behalf of Billhorn Law Firm | Apr 24, 2022 | Wage & Hour Laws. It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. And, the rate is higher outside the city limits. The citys minimum wage is not just a piece of legislation, it also influences employment. 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) . 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. Youths working less than 650 hours per year. Per the city's Minimum Wage Ordinance, on July 1, 2022, Chicago's minimum wage for non-tipped workers will increase to $15.40 for large businesses that employ 21 or more workers, and. Vaccines protect you and the people around you, reducing the spread of COVID-19. 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. Starting July 1, the minimum wage for tipped employees will rise to $7.40. 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. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. For businesses. 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. Who Qualifies . Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. A $1 increase in Illinois' minimum wage is set to take effect on New Year's Day 2022. . 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. 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. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. Several factors influence the minimum wage in Chicago, including the economy and the number of jobs available. For smaller businesses with 4-20 employees, the increase is delayed until 2022. Chicago's minimum wage is going up Thursday. For more information, check out the Illinois Department of Labor and the Cook County Minimum Wage Ordinance. The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. 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 increase will affect tipped employees as well. 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. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. Chicago has a long, proud history of being allied with workers, both promoting and protecting their rights, said Mayor Lightfoot. "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. hmoH~lUM4^=jld;Uof $F@.Y Read more: Does Marshalls Take Apple Pay? endstream endobj 267 0 obj <>/Metadata 5 0 R/OCProperties<>/OCGs[298 0 R]>>/Outlines 9 0 R/PageLayout/SinglePage/Pages 264 0 R/StructTreeRoot 12 0 R/Type/Catalog>> endobj 268 0 obj <>/ExtGState<>/Font<>/Properties<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 269 0 obj <>stream 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. 0 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. 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) $14.50 for employers with 4-20 employees #{b,Ap)$B9(fpBKU RV0DX:]tkY#=m^ou`11: %?\N*H(UaAy.!Nj&iN}`fL'O!dFeM4'=/![bZTtY,|G1}u? Learn more atLearn more at Chicago.gov/COVIDVax. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. Our city's labor laws, including the minimum wage, are an important backbone of our city's economy and provide stability to working families. 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. ABC 7s I-Team breaks down the numbers for you. Aside from the fines, employers will be forced to post the minimum wage notices in multiple languages. Chicagos minimum wage increases each July 1st. 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? Under Illinois law, the minimum wage for workers aged 18 and over is $11.00 per hour as of January 2021. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. The minimum wage in Chicago and suburban Cook County increased Friday and in the city, new parts of the Fair Workweek Ordinance took effect. 2020: $12.75. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. "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. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. Nonprofits must have at least 250 workers. And. 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 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. July 1,2022 Effective Date. Copyright 2023 NBCUniversal Media, LLC. Last year, the minimum wage was $11 and $6.60, respectively. The minimum wage for medium-sized employers increased 50 cents this year. The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower. It has not increased since 2009. Alaska Minimum Wage 2023 (right information). The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. 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. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. 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. Content 2023 Minimum-Wage.org, all rights reserved. Fully updated for March 2017! Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. 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. To learn about Chicagos labor laws, visitChicago.gov/LaborStandards. 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. "We were the first city in the state to get to $15 and its going up today," she added. 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. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. Beginning in 2022, the minimum wage in Chicago will increase each year at a rate tied to the consumer price index, capped at 2.5% annually. 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. This site is a free public service not affiliated with the Department of Labor or any governmental organization. Chicago's minimum wage is going up Thursday. What is the minimum wage in Chicago? 266 0 obj <> endobj On July 1, the ordinance will require those employers to give workers 14 days notice of their schedules instead of the 10 days notice previously required. At "Can't Believe It's Not Meat" in Old Town, owners said they already pay more than the minimum wage. It is set to increase Jan. 1, 2023, to $13 and $7.80, respectively. The increase, of 40 cents for workers at the city's large employers, comes at a time. Restaurant workers and others who receive tips will now get a base rate of $9 per hour. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. Eligible youth can find qualifying opportunities by downloading the My CHI. Instead you can report it. ). Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. 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. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Our previous post Alaska Minimum Wage 2023 (right information) We recommend that you also read our article titled. Learn more atLearn more at Chicago.gov/COVIDVax. 297 0 obj <>/Filter/FlateDecode/ID[<6E5AB61FA15CDA4C85BC0B8CF0E74592>]/Index[266 47]/Info 265 0 R/Length 139/Prev 159337/Root 267 0 R/Size 313/Type/XRef/W[1 3 1]>>stream 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. And. 126 0 obj <> endobj 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 new ordinance also requires employers to pay younger workers more than the minimum wage. But July 1, that rate is set to increase, according to officials. 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 rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. This year, the Consumer Price Index exceeded this cap and the minimum wage was frozen. Last updated June 7, 2022. SummaryAs of July 1, 2022 the minimum wage in Chicago is $15.40 per hour for employers with 21 or more workers, and $14.50 per hour for employers with 4 to 20 workers. as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market. Local Minimum Wage Rates. 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. 2022: $14.25. Lightfoot said the move is a victory for working class employees who are the backbone of the city. The city estimates that more than 400,000 people will be affected by the minimum wage increase. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. Employers should consider updating their minimum wage posters to reflect the new rates. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. endstream endobj startxref By this date, the notices must be posted in multiple languages. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%. 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 $236,595 in fines to the City. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D Chicago has been a leader in worker protections, and the upcoming changes reflect the Citys commitment to creating financial opportunity for all Chicagoans. 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. Another exception is for young employees those 24 or younger of religious corporations or organizations. endstream endobj 127 0 obj <. With these new measures, the City is reaffirming its commitment to our talented workers and demonstrating why we are one of the nation's leaders in protecting workers' rights.". The citys minimum wage policies and exceptions can be complicated. Notice effective on July 1, 2022. Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. Let us know in a single click, and we'll fix it as soon as possible. Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. Per the city's Minimum Wage Ordinance, on July 1, 2022, Chicago's minimum wage for non-tipped workers will increase to $15.40 for large businesses that employ 21 or more workers, and $14.50 for smaller businesses. But that doesnt mean that businesses in the city dont have real concerns. Several big measures are going into effect July 1 in Chicago, one of them being an increase in the city's minimum wage. 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's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. For tipped workers, the minimum wage shall be $9.24 per hours plus tips for employers with 21 or . Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. f you want to learn about Arkansas minimum wage, you can click on it. 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. What is minimum wage in Chicago 2022? 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. You have probably asked yourself this question before. Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. Industries covered by the ordinance are health care, hotels, restaurants, retail, warehouses, manufacturing and building services. The more generous minimum wage may apply in these localities: Seattle: $18.69/hr. "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.". State Minimum Wage Rates 2022 vs. 2023. Chicago minimum wage is tiedred, meaning that businesses with 21 or more employees must pay more than businesses with four to 20 employees. 159 0 obj <>/Filter/FlateDecode/ID[<3BFCB49C3177B8469B7F76F87E6D841A><380E6F55F1D8B24981E52EE9EE2EDFE4>]/Index[126 58]/Info 125 0 R/Length 141/Prev 131880/Root 127 0 R/Size 184/Type/XRef/W[1 3 1]>>stream 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. 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. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July. (en Espaol) 2023 minimum wage announcement in 13 languages. 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). %PDF-1.6 % 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. %PDF-1.6 % 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 for larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower, since reaching $15 per hour in 2021. (Jose M. Osorio / Chicago Tribune). 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. gRsg[sH~3\C? 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD 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. 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. In addition, it will also affect tipped employees. rates that apply to employees of different classes of company who work Chicago. 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. 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