"That's a little more money you can buy groceries with," says Rosemary Coleman who is ready to see more money in her paycheck. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. 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. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. Companies with wage floors at $15 or higher include big employers like Target, Costco and Amazon. In addition to Chicago, there are other localities in Illinois that have passed municipal minimum wage legislation. 2019: $12. "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. It also increases the minimum wage for young employees employed by religious institutions. 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. 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. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. BACP will host free informational webinars to prepare employers for the upcoming changes to Chicagos Labor Standards Laws. 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. 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. 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. Read more: Does Marshalls Take Apple Pay? For businesses. Anyone . 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. The law also requires employers to pay overtime to employees who work more than forty hours in a week. 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. Lightfoot said the move is a victory for working class employees who are the backbone of the city. Required fields are marked *. "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. Vaccines protect you and the people around you, reducing the spread of COVID-19. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. These recommendations. 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. Local Minimum Wage Rates. 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. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. The ordinance also sets a cap of 2.5% on annual increases, so the minimum wage in Chicago cant go above that. This year and beyond, the minimum wage increase for large employers is pegged to the Consumer Price Index or 2.5%, whichever is lower. 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. CHICAGO (WLS) -- The minimum wage in Chicago and suburban Cook County increased Friday. 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. 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. 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? The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. But that doesnt mean that businesses in the city dont have real concerns. The minimum wage, its just, its fair, it gives people a living wage, said Andy Fox, the director of Chicagos Office of Labor Standards. You can find a list of highest and lowest minimum wage rates here . Under the ordinance, the citys minimum wage requirements can be waived in a collective bargaining agreement, but only if the waiver is written out explicitly in the agreement. 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. Nixle is increasing Chicagos minimum wage because we believe a fair days pay is part of our longstanding commitment to safety in the workplace. Businesses with fewer than 21 employees are required to pay employees at least $14.50 an hour. Help us keep Minimum-Wage.org up-to-date! Mayor Lightfoot has worked tirelessly to ensure that Chicagos workers, especially the most vulnerable, are protected under Chicagos labor laws. Chicago minimum wage will increase by 40 cents to $15 per hour. "We need it even more now because people are financially struggling," Mayor Lori Lightfoot said when speaking to workers at Navy Pier Friday morning. State Minimum Wages | They must be paid at least $12 an hour. But July 1, that rate is set to increase, according to officials. 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. 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 current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. Employers who violate the notices may face fines of $500 to $1,000 per day. For tipped workers, the minimum wage shall be $9.24 per hours plus tips for employers with 21 or . 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. 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? %%EOF No: Yes: Nonprofits must have at least 250 workers. The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower. According to state law, teenagers under the age of 18 must be paid at least Illinois' current youth minimum wage, which is $9.25. Overtime pay equals time and a half of an employees regular pay rate. Chicago has a long, proud history of being allied with workers, both promoting and protecting their rights, said Mayor Lightfoot. / MINIMUM NA SAHOD / , Mailing ListIf you wish to be added to our mailing list for the Office of Labor Standards updates, announcement and notices, please email us at bacplaborstandards@cityofchicago.orgOther ResourcesPaid Sick Leave Ordinance Information Fair Workweek Ordinance InformationAnti-Retaliation Ordinance InformationVaccine Anti-Retaliation Ordinance InformationOffice of Labor Standards, 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), Vaccine Anti-Retaliation Ordinance Information. For tipped workers, the rates will also increase -- to $9.24 for large employers and $8.70 for smaller businesses. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. But how much money could you get? 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. The OLS is dedicated to promoting and enforcing Chicagos labor laws, including Minimum Wage, Paid Sick Leave, Fair Workweek, and Wage Theft Ordinance. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. Copyright 2023 NBCUniversal Media, LLC. endstream endobj 270 0 obj <>stream Resolved Investigations:Resolved Investigations 2021Resolved Investigations 2022, ComplaintFile a Complaint by calling 311, using CHI 311, or by filling out a Complaint Form.ARCHIVE UNA DEMANDA / SKADANIE ZAALE / / MAGHAIN NG REKLAMO / Notice, Download Notice: MINIMUM WAGESALARIO MNIMO / PACA MINIMALNA / / MINIMUM NA SAHOD / , Mailing ListIf you wish to be added to our mailing list for the Office of Labor Standards updates, announcement and notices, please email us at bacplaborstandards@cityofchicago.orgOther ResourcesPaid Sick Leave Ordinance Information Fair Workweek Ordinance InformationAnti-Retaliation Ordinance InformationVaccine Anti-Retaliation Ordinance InformationOffice of Labor Standards, 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), Vaccine Anti-Retaliation Ordinance Information. "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.". Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. Your email address will not be published. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. New minimum wages in effect July 1 for Chicago, Cook County . 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. Several big measures are going into effect July 1 in Chicago, one of them being an increase in the city's minimum wage. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. Ultimately, this will be a boon for low-income workers in Chicago. rates that apply to employees of different classes of company who work Chicago. 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. The new ordinance also requires employers to pay younger workers more than the minimum wage. What is the minimum wage in Chicago? Starting July 1, the minimum wage for tipped employees will rise to $7.40. 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 average Illinoisan has seen wages cut by $2,200 in the past decade, while inflation has increased by 10 percent (according to the Bureau of Labor Statistics). 4. The citys Fair Workweek Ordinance, which went into effect in 2020, requires large employers in certain industries to give workers advance notice of their schedule and pay them for last-minute changes. Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. Federal Minimum Wage | The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. 2023 minimum wage announcement poster. uJ(\cZYy:8-_Sg8W8gjcAn~k_65c%M'6nr Z1?vc33D$(MTfJ/`\b9{iN&D!w5v2eO>(p_MO%~|sp^0C9d20eeR1=7{Z#*"ng5Z03,>,b[]/2.R7Bw1}#aXYk(Ri8s4T7io7. R wy8yM`?xioUrX/ !f 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. Under the ordinance, workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. 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. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. 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) . Aside from the fines, employers will be forced to post the minimum wage notices in multiple languages. 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. All Chicago worker protections are enforced by the BACP Office of Labor Standards (OLS). 2022: $14.25. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. 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 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. Fully updated for March 2017! 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. State Minimum Wage Rates 2022 vs. 2023. 2020: $12.75. 2021: $13.50. %PDF-1.6 % Alaska Minimum Wage 2023 (right information). All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. The increase will raise Chicago's minimum wage by $0.50 per hour. endstream endobj startxref The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. It's $14 . endstream endobj startxref It will continue to increase every year, linked to the Consumer Price Index and capped at 2.5%. 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. ). For instance, employees under the age of 18 must be paid $12 an hour. Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. Chicago minimum wage is tiedred, meaning that businesses with 21 or more employees must pay more than businesses with four to 20 employees. 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. Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense. Eligible youth can find qualifying opportunities by downloading the My CHI. Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees. In Illinois, tipped employees may make $7.20 per hour in 2022. "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. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. If a tipped workers wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Its expected to increase by less than 3%, a tenth of that amount. Chicago minimum wage is tiered for large and small businesses. The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. This site is a free public service not affiliated with the Department of Labor or any governmental organization. %%EOF Faced with the challenges of providing for families, paying rent, buying groceries and fighting the rising costs of gasoline, low wage workers are able to earn a living wage with the increases to the Chicago minimum wage and the lengthening of the Fair Workweek notice requirement this year, said Andy Fox, Director of the Office of Labor Standards. "u$G Chicago has been a leader in worker protections, and the upcoming changes reflect the Citys commitment to creating financial opportunity for all Chicagoans. July 1,2022 Effective Date. (Jose M. Osorio / Chicago Tribune). 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. Some local jurisdictions have higher minimum wage rates and different labor rules than Washington state. Several factors influence the minimum wage in Chicago, including the economy and the number of jobs available. Despite the increase, Chicago workers can still earn more than that wage, as long as they are working in the city. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. hmoH~lUM4^=jld;Uof $F@.Y This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. And for youth workers, the minimum wage is now $11 per hour, rising until it reaches $15 an hour by 2025, when there will no longer be an exemption to the city's minimum wage ordinance for employees under 18. The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. It depends on what you do and how many employees there are at your company. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. (MCMF) mobile app,which is aresource designed to help teens and young adultseasily find out-of-school programs, events, resources, jobs, and more. 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. But, what will it cost you? 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. Chicago's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. 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. And, the rate is higher outside the city limits. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. 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. If the tipped . What Is the Minimum Wage in Chicago? The city estimates that more than 400,000 people will be affected by the minimum wage increase. endstream endobj 127 0 obj <. With 71 percent of our total budget coming from local, city and county contracts, we are acutely aware of how important it is for workers to be paid fairly for their labor. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. The city is raising its minimum wage every year, as mandated by law. 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\ Details This page contains the Low Pay Commission's recommendations on the National Living Wage and National Minimum Wage rates which will apply from 1 April 2022. %PDF-1.6 % In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. Is any of our data outdated or broken? Employers should consider updating their minimum wage posters to reflect the new rates. 0 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. 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 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. Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. BK 9 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. You can find more information about Illinois' minimum wage and labor laws on this site. Department of Labor Standards Laws than businesses with 21 or of that.... Increase in the city dont have real concerns at all will raise Chicago 's wage. 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