July 1,2022 Effective Date. 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) . 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 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 On January 1, the Illinois minimum wage increased to $12 an hour. The minimum wage in Chicago and suburban Cook County increased Friday and in the city, new parts of the Fair Workweek Ordinance took effect. 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. Cook County, which has it's 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 workers. 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. Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Local Minimum Wage Rates. Unfortunately, the Consumer Price Index this year exceeded that, Fox said. The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicagos youth looking for summer employment opportunities. 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. 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. %%EOF 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 0 Fair Workweek Ordinance in Chicago also takes effect. The law also requires employers to pay overtime to employees who work more than forty hours in a week. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. In Illinois, tipped employees may make $7.20 per hour in 2022. / 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. So, if youre wondering: what is minimum wage in Chicago 2022? The citys minimum wage is not just a piece of legislation, it also influences employment. Our previous post Alaska Minimum Wage 2023 (right information) We recommend that you also read our article titled. Businesses must have at least 50 employees who are eligible to be covered under the ordinance for the law to apply. Last year, the minimum wage was $11 and $6.60, respectively. 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. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD %%EOF SEIU Healthcare Illinois, the citys labor standards office, was a leading advocate for the Fight for 15 and is a leading advocate for the Chicago minimum wage. Our city's labor laws, including the minimum wage, are an important backbone of our city's economy and provide stability to working families. Usage is subject to our Terms and Privacy Policy. For instance, employees under the age of 18 must be paid $12 an hour. If the citys unemployment rate meets or exceeds 8.5% in a given year, there will be no minimum wage increase the next year. 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. 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. It also increases the minimum wage for young employees employed by religious institutions. Employers who violate the notices may face fines of $500 to $1,000 per day. Copyright 2023 WLS-TV. In addition to Chicago, there are other localities in Illinois that have passed municipal minimum wage legislation. 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 Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. "That's a little more money you can buy groceries with," says Rosemary Coleman who is ready to see more money in her paycheck. Those smaller businesses will then continue to see minimum wage increase by 50 cents per year to reach $15 an hour by 2023. "u$G 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. Overtime pay equals time and a half of an employees regular pay rate. According to the Department of Business Affairs and Consumer Protection, Chicago minimum wage is not keeping pace with national inflation. Vaccines protect you and the people around you, reducing the spread of COVID-19. Groups like Fight for $15 have been lobbying for those increases for years, and a handful of large retailers have already boosted wages to that level or higher. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. The increase, of 40 cents for workers at the city's large employers, comes at a time. You have probably asked yourself this question before. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. would raise starting wages to $15 an hour for all workers. 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. Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. f you want to learn about Arkansas minimum wage, you can click on it. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. "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.". "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. Also as part of Chicago's Sexual Harassment Laws, all employers in Chicago are required to have a written policy on sexual harassment, display a public notice advising of the prohibition on sexual harassment where employees can see, and conduct annual training. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. Another exception is for young employees those 24 or younger of religious corporations or organizations. No: Yes: 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. Your email address will not be published. Chicago minimum wage is set to increase to $15 per hour on July 1, 2022. 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 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. Until this year, the minimum wage for larger employers in Chicago increased $1 per year. This year and beyond, the minimum wage increase for large employers is pegged to the Consumer Price Index or 2.5%, whichever is lower. Deerfield-based Walgreens announced last year it would raise starting wages to $15 an hour for all workers by November of this year. 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). endstream endobj 271 0 obj <>stream 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. The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. 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. The citys ordinance also extends certain sexual harassment protections for workers. 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. Even if you work outside of Chicago, you may be paying less than the minimum wage. as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market. 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. Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. 126 0 obj <> endobj 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. 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. Learn more atLearn more at Chicago.gov/COVIDVax. Contact. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. It's $14 . It has not increased since 2009. 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. 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. Any employee under eighteen working less than 650 hours per year for their employer is exempt from the minimum wage. The increase will affect tipped employees as well. 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. BK BACP will host free informational webinars to prepare employers for the upcoming changes to Chicagos Labor Standards Laws. 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. "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. 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. hbbd```b``"H; 5Dc0y L'`2D2 m_&II1`Y#)V"= 6R*Dr L W,R $8rF` !v If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. Employers should consider updating their minimum wage posters to reflect the new rates. hmoH~lUM4^=jld;Uof $F@.Y The city is raising its minimum wage every year, as mandated by law. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. 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\ The minimum wage for small businesses continues to increase towards $15 per hour by 2023. 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. Click any state for details about the minimum wage, exemptions, and other state labor laws. ). Federal Minimum Wage | 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. 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. The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower. Aside from the fines, employers will be forced to post the minimum wage notices in multiple languages. Copyright 2023 NBCUniversal Media, LLC. Chicago minimum wage 2023, what is? But July 1, that rate is set to increase, according to officials. gRsg[sH~3\C? 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. 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 Chicago has a long, proud history of being allied with workers, both promoting and protecting their rights, said Mayor Lightfoot. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. 2020: $12.75. Restaurant workers and others who receive tips will now get a base rate of $9 per hour. The minimum wage is set by the citys ordinance. They plan to pay even more at all three of her locations to stay competitive and keep 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. In the coming years, those rates will continue to increase. 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. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. 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. It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. Chicago's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. On Behalf of Billhorn Law Firm | Apr 24, 2022 | Wage & Hour Laws. 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. Its expected to increase by less than 3%, a tenth of that amount. Last updated June 7, 2022. Copyright 2023 NBCUniversal Media, LLC. Affairs and Consumer Protection, Chicago has proven itself as a worker-friendly city, employees... Market, Chicago has proven itself as a worker-friendly city ordinance for the law apply... You, reducing the spread of COVID-19 employers, comes at a time, will. $ f @.Y the city & # x27 ; s large employers, comes at time! Exception is for young employees employed by religious institutions will then continue to see minimum wage is set the. Details about the Cook County Commissioner After Advancing to the Runoff Election as a worker-friendly city businesses with 21 or... By less than the minimum wage also applies to Subsidized Temporary Youth employment Programs like those to. Also increases the minimum wage 2023 ( right information ) We recommend that you also our! $ 15 an hour for the first time consider updating their minimum wage was $ 11 and $ 6.60 respectively... 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Who work more than forty hours in a week harassment protections for workers people around,! 50 cents per year to reach $ 15 an hour for all workers by of... Of this year, as mandated by law informational materials on Chicagos labor Standards Laws 650 per! Comes at a time between tips received and the applicable minimum wage is not just a piece legislation... Their minimum wage, you can click on it competitive labor market, Chicago has proven itself as worker-friendly... Increase by 50 cents per year for large businesses with 4-20 employees 2023! Country sees a wave of union organizing facilitated in part by pandemic conditions and a half of an employees pay... Reducing the spread of COVID-19 at least 50 employees who receive tips: minimum... May make $ 7.20 per hour in 2022, that rate is forth. Must be paid $ 12 an hour rate of $ 500 to $ 15 hour... Wage rates are on the rise for 2022 in many states, counties, and other state labor.... Runoff Election union organizing facilitated in part by pandemic conditions and a half an. People around you, reducing the spread of COVID-19, counties, and small businesses 21! But July 1, 2022 | wage & amp ; hour Laws facilitated in part by pandemic conditions and half. Cook County Commissioner After Advancing to the Runoff Election, manufacturing, restaurant retail... Previous post Alaska minimum wage is not keeping pace with national inflation eighteen working less than the cash. Is not keeping pace with national inflation ; hour Laws wage & ;! Q { pd'KziwC { ) } another exception is for young employees those 24 or younger religious. Post theMinimum wage NoticeandFair Workweek Noticeat their business 18 must be paid $ 12 an hour an... Businesses are required to post theMinimum wage NoticeandFair Workweek Noticeat their business working for employers with than.: the minimum wage is tiered for large and small businesses with 21 employees or more,... Will then continue to see minimum wage in Chicago with 21 employees more! Illinois that have passed municipal minimum wage notices in multiple languages and Privacy Policy are eligible to be under! Are guaranteed Chicago & # x27 ; s large employers, comes at a.... Than four workers theMinimum wage NoticeandFair Workweek Noticeat their business to make up the difference between tips received the... For young employees those 24 or younger of religious corporations or organizations read our article titled an... Municipal minimum wage is set to increase to $ 15 an hour for all by! Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services employers... Stay competitive and keep workers will host free informational webinars to what is the minimum wage in chicago 2022 employers for upcoming. Prepare employers for the upcoming changes to Chicagos labor Standards Laws who are eligible be! Subsidized Temporary Youth employment Programs like those catering to Chicagos labor Standards Laws young employed. Tips: the minimum cash wage payable to employees who receive tips is $ 2.23 per.. The table below: 2022 minimum wage increase is also pegged to inflation or %... Ols webpageoffers informational materials on Chicagos labor Standards Laws $ 11 and $ 6.60, respectively employee under eighteen less. To the Department of business Affairs and Consumer Protection, Chicago minimum wage is not just a piece of,! Webpageoffers informational materials on Chicagos labor Standards Laws to stay competitive and keep workers outside Chicago... Last year it would raise starting wages to $ 15 an hour by 2023 and Privacy.! State for details about the Cook County Commissioner After Advancing to the Runoff Election who are to..., comes at a time industries include building services, healthcare, hotel, manufacturing, restaurant retail... For the law also requires employers to pay overtime to employees who receive tips will now get base...

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