Back to Index. However, this is set to change in 2020, when the state will raise the minimum wage to $10.00. Coverage depends on the physical location (in Minneapolis) of the employee while performing work, regardless of the employee's age. dinance 3 FREQUENTLY ASKED QUESTIONS The Chicago minimum wage will increase to $15.40 per hour for employers with 21 or more employees and to $14.50 per hour for employers with 4-20 employees. The ordinance states that in each year, the highest minimum wage governs in Cook County, whether that is the federal minimum wage, the state minimum wage or the countys minimum as set forth in the new law. For this reason, more than 50 municipalities in Cook County more than one-third have opted out of the pending minimum wage hike and sick leave mandate, according to the Chicago Sun-Times. Sec. For July 1, 2022 through June 30, 2023, those rates are: $14.75 per hour - Portland metro. Interestingly, the Chicago and Cook County ordinances provide that when unemployment in Chicago or Cook County, respectively, reaches 8.5 percent or higher, the minimum wage will not increase the following year. 373 0 obj <>stream Subscribe to our blog for the latest employment law news. State: Jurisdiction/Minimum Wage: . Because the unemployment rate in Cook County was above 8.5 percent over the previous year, the standard rate will not increase on July 1, 2021, as planned. Research on minimum wage laws backs up their sentiments. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. story The Ordinance applies to hourly, salaried, and tipped employees, over the age of 18, working in Cook County, even those who may be working within the County to make deliveries or driving within the County limits. The Wages set out in Sections 42-13 and 42-14 are subject to the overtime compensation provisions in the Cook County Minimum Wage Law, with the exception that the definitions of "Employer" and "Employee" in this chapter shall apply. . They will be based on percentage increases determined by the . Cook County and Chicago's annual minimum wage increases go into effect on July 1, 2022. As a reminder, the state of Illinois' minimum wage and tipped wage rates are set to increase on January 1, 2022. . More than 50 of Cook Countys 132 municipalities have used their home rule authority to opt out of the countys wage hike and sick leave mandate, and the number of municipalities considering opting out continues to climb, according to WBEZ. On Jan. 1, 2022 the state's minimum wage increases to $12 per hour. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Smaller employers (100 or fewer employees) continue paying at least $13.50 until July. / CBS Chicago. The Seattle Times noted, For an average low-wage worker in Seattle, that translates into a loss of about $125 per month per job., This newstudy echoed findings in a 2016 University of Washington report on the effects of the first phase of Seattles increase in its minimum wage. Illinois Tipped Minimum Wage Laws for 2022, 2023 Illinois' normal state minimum wage rate is $13.00 per hour. 336 0 obj <>/Filter/FlateDecode/ID[<40825334C6034852B75058E972CAD54A><290230037E060044AA1834D34DF6F10C>]/Index[302 72]/Info 301 0 R/Length 151/Prev 207881/Root 303 0 R/Size 374/Type/XRef/W[1 3 1]>>stream Effective July 1, 2022, the minimum wage for non-tipped workers increased to $13.35. 2023 Living Wage Poster Please enter valid email address to continue. Illinois After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. comeback The MWO sets the lowest amount an employer must legally pay their employees. who continue to work after their work-study has ended or becomes exhausted must also be paid at the Chicago and Cook County minimum wage. Illinois employers may not pay you under $13.00 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law. The Ordinance also applies even those who may be working within the County to make deliveries or driving within the County limits. The law reduces the rate to $14 an hour for businesses with 20 or fewer employees, but even they will be . Palatine Village Manager Reid Ottesen said in a statement reported by the Daily Herald, We already have sales tax and property tax disadvantages compared to Lake County. Thus, Palatine can ill afford two more disadvantages with neighboring Lake County, in Ottesens view. Those who did work had fewer hours than they would have without the wage hike., A study released in June by researchers from the University of California, Berkeley, however, found the hike in Seattles minimum wage had no effect on employment in Seattles food services industry. Check this list carefully to see if any of these labor posters are relevant to your business. All rights reserved, Chicago Police Supt. The county's hourly minimum wage will remain unchanged at $13.00. The new wage will be $12 an hour. Suite 1130, 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . Chicago passed a minimum wage ordinance in 2014. Since Cook County passed its minimum wage and sick leave ordinances in October 2016, Illinois Policy Institute research shows 107 Cook County municipalities have opted out of both ordinances, one municipality has opted out of only the sick leave ordinance, and three municipalities have opted out of only the minimum wage ordinance. The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry by 4-6 percent for each $1 increase in the wage rate. Chicagos current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with four to 20 employees. Chicago and Cook County should follow suit and reconsider their minimum wage hikes. Per the city's Minimum Wage Ordinance, on July 1, 2022, Chicago's minimum wage for non-tipped workers will increase to $15.40 for large businesses that employ 21 or more workers, and. 80% of Cook County municipalities have opted out of minimum wage, sick leave ordinances, countys minimum wage and sick leave ordinances, unemployment in Chicago or Cook County, respectively, reaches 8.5 percent, highest black unemployment rate in the nation. Y*%+-KpxYp$V b Cook County and Chicagos annual minimum wage increases go into effect on July 1, 2022. Click here to review Cook County's minimum wage law. In addition, Chicago employers must provide all employees a notice of the minimum wage increases by July 31, 2022. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. 1-888-273-3274. %PDF-1.6 % Employers know that the new year brings minimum wage increases for dozens of jurisdictions across the U.S. On Jan. 1, 2023, 40 counties and cities will increase their minimum wage rates. The minimum wage is $6.60 for tipped employees. But research shows that increasing the cost of hiring people through minimum wage hikes means many workers with lower skill levels and comparatively little experience will be priced out of the job market altogether, and many job-creating businesses will have a hard time staying afloat. The ordinance phases in the increase: On July 1, 2017, the minimum wage rose to $10, and the level goes up by $1 each year after that until it reaches $13 in July 2020. According to a 2011 study by the Employment Policies Institute, for every 10 percent hike in the minimum wage, employment declined 6.5 percent for 16-to-24-year-old black males without a high school diploma. The Chicago minimum wage will increase to $15.40 per hour for employers with 21 or more employees and to $14.50 per hour for employers with 4-20 employees. 0 These range from $12.32 in Santa Fe, New Mexico, to $17.54 in SeaTac, Washington. Bedford Park 6. The minimum wage increase rate is capped at no more 2.5% per year and will not rise if Cook County experiences unemployment of at least 8.5% the previous year. The head of government relations for Jewel-Osco grocery stores told the Tribune the grocery chains costs had shot up for its 35 Chicago stores after the city increased its minimum wage, causing Jewel-Osco to hire 5 percent fewer workers the year after the law went into effect. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). There are Skokie families for whom this will mean serious financial hardship. Each year the minimum wage increases according to a formula set by the Ordinance. Cook County Minimum Wage. All Domestic Workers must receive at least the $15.40 minimum wage. -Cook County. Effective Jan. 1, the statewide Illinois minimum wage will rise to $13 per hour for non-tipped employees ages 18 and . t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy As of 12/31/2022. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). The employer maintains a business facility in Cook County or is issued a business license by Cook County. story Cook County minimum wage will not increase July 1, 2021, due to unemployment numbers. All Rights Reserved. Copyright 2023 NBCUniversal Media, LLC. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. First published on June 1, 2022 / 6:19 PM. The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. Cook Countys minimum wage is based on the greatest rate among the Federal minimum wage, Illinois State minimum wage, or on the Countys calculation using the Consumer Price Index (CPI). Employers must inform employees of these increases in writing. July 1, those rates will rise to $13.35 for non-tipped workers and $7.40 for tipped. Broadview 12. endstream endobj 303 0 obj <>/Metadata 26 0 R/Pages 300 0 R/StructTreeRoot 47 0 R/Type/Catalog/ViewerPreferences<>>> endobj 304 0 obj <. Cook County Legislative Committee Chairman John Daley described the minimum wage hike and sick leave legislation as the moral and right thing to do when the Cook County Board passed the measures in October 2016, according to the Chicago Tribune. David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? Starting July 1, minimum wage in Chicago will increase by $1 to $14 per hour for employers with more than 21 workers. The minimum wage in Illinois is set to increase another dollar on Saturday, Jan. 1, 2022. Increases in minimum wages can drive some firms out of business entirely. We have converted it to an hourly wage for the sake of comparison. Chicago, IL 60602. More than 50 municipalities have opted out of Cook Countys minimum wage hike, sick days mandate, unemployment in Chicago or Cook County, respectively, reaches 8.5 percent, Des Plaines City Council voted to opt out, reduction of over $100 million per year in total payroll, highest black unemployment rate in the nation. On June 27, the Wilmette Village Board voted to opt out of the minimum wage and sick leave ordinances by votes of 6-1 and 5-2, respectively. Cook County issues notice to Minimum Wage Ordinance, Office of the Independent Inspector General, CARES Act Information for Local Governments, Freedom of Information Act for Offices Under the President, The employee has worked for an employer in Cook County for at least 2 hours in any two-week period, and, The employer has four or more employees (or the employee is a domestic worker) and. Cook Countys minimum wage is based on the greatest rate among the Federal minimum wage, Illinois State minimum wage, or on the Countys calculation using the Consumer Price Index (CPI). The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. And minimum wage hikes canreduce job opportunitiesin minority communities. But wage hikes have a worse effect on lower quality restaurants: A $1 increase in the minimum wage leads to a 14 percent rise in the likelihood a 3.5-star-rated (i.e., median-rated on Yelp) restaurant will close, according to the study. Any time worked in 2022 must reflect the new $12 an hour minimum wage. The Commission investigates complaints to determine if a violation of the Ordinance has occurred. $4.75 Tip Credit. Cook County Legislative Committee Chairman John Daley described the minimum wage hike and sick leave legislation as the moral and right thing to do when the Cook County Board passed the measures in October 2016, according to the Chicago Tribune. The employer maintains a business facility in Cook County or is issued a business license by Cook County. It is not surprising that so many municipalities are rejecting ordinances that can make it even harder for businesses to stay afloat, and to provide job opportunities for residents who need them. The Chief Procurement Officer for Cook County orthe Cook County Assessor then reviews the Commission's recommendation and makes a policy consideration as to whether to pursue back pay, debarment of a County contractor or subcontractor, revocation of a property tax incentive or other appropriate remedies. If a suburb opted-out, the Illinois minimum wage applies. But Leslie Shedd, vice president of the National Restaurant Association, said in an emailed statement to The Associated Press, A study in one of the wealthiest cities in the U.S. does not reflect the impact drastic minimum wage increases could have across the country and should not be relied upon as this discussion continues especially considering other studies have refuted these results.. Of these, 26 raised their minimum wages on January 1. i Table 2 shows these New Year's Day increases. Fair Workweek Ordinance In Chicago, enhancements to the Fair. As of July 1, 2020, the Chicago minimum wage is $13.50 per hour for employers that have four to 20 workers and $14 for employers that . The minimum wage in Cook County outside of Chicago will remain at $13 per hour because the unemployment rate in 2020 was greater than 8.5%, officials said. Unlike last year, where the unemployment rate was greater than 8.5%, the unemployment rate is now under 8.5%, which means that the minimum wage for . No. By comparison, employment decreased 1.2 percent for Hispanic males, and dropped 2.5 percent for white males in the same age and education categories. 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. Complaint forms and additional informationcan be found online. Along with the minimum wage increase, the Cook County Board also passed an ordinance mandating that employers in Cook County provide each employee with one hour of sick leave for every 40 hours worked, up to 40 hours of paid sick leave per year, for employees who have worked at least 80 hours within a 120-day period. State of Illinois Minimum Wage and Tipped Wage, Cook County Tipped Wage Increase as of January 1, 2022. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. Cook County: $6.70 (current as of July 1, 2021) $5.80 (effective January 1, 2022) $6.60 (current) $7.20 (effective January 1, 2022) MUNICIPALITIES THAT HAVE OPTED OUT OF BOTH THE COOK COUNTY MINIMUM WAGE ORDINANCE AND THE COOK COUNTY PAID SICK LEAVE ORDINANCE 1. MIT labor economist David Autor said in a statement reported by the Los Angeles Times, [The study] suggests we should be proceeding cautiously when we start pushing minimum wages into ranges where they are pretty significant., The June 2017 study echoed the 2016 report by University of Washington researchers on the effects of the first phase of Seattles increase in its minimum wage, when the rate increased to as much as $11 an hour from $9.47 an hour. (Ord. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. C00k County: Has a current minimum wage of $13.35 per hour, with tipped employees set at $7.80. In Illinois, the minimum wage is currently set at $8.25. The minimum wage for tipped workers increased to $7.40. Burbank 15. In addition to the minimum wage increases July 1, Chicago businesses in. Cook County Government. 1305 Corporate Center Drive 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 6-105-045 Paid sick leave. t 217.528.8800 f 312.212.5277 e [email protected], Copyright 2023 Illinois Policy | Illinois' comeback story starts here. For Cook County and Chicago, the minimum wage goes up, effective Friday, July 1. comeback %%EOF Employees are covered by the Cook County MWO if: Employees who believe their employer is not paying the required minimum wage should first check to ensure the municipality where they work does not have a different minimum wage. And the Glenview board of trustees voted 4-1 on June 8 to opt out of Cook Countys minimum wage hike and sick leave ordinances, according to the Chicago Tribune. The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry. Each year the minimum wage increases according to a formula set by the Ordinance. The Wilmette/Kenilworth Chamber of Commerce, which represents many small businesses, urged the village board to opt out, explaining that [t]he majority of respondents [to the chambers survey of local businesses] believe they would have to raise prices in order to comply with a mandatory minimum wage increase and mandatory paid leave and that [p]roviding and tracking paid leave for full and part-time employees will cause a significant financial hardship for the majority of respondents., Reflecting on the River Forest Village Boards unanimous vote in March to opt out of the Cook County ordinances, Oak Park River Forest Chamber of Commerce President Cathy Yen commented that small businesses operate on extremely thin margins, [which] mean there is little excess profit that can be reallocated to employee salaries, according to the Chicago Tribune. 69 W. Washington Street, Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. The researchers found that across all restaurants, a $1 increase in the minimum wage means a 4-10 percent increase in the likelihood a restaurant will go out of business. Research on minimum wage laws backs up their sentiments. The ordinance phases in the increase: By July 1, 2017, the minimum wage will rise to $10, and the level goes up by $1 each year after that until it reaches $13 in July 2020. 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 . Blue Island 10. J.B. Pritzker signed legislation in 2019 putting . Intake interviews are by appointment only, please call or email to make an intake appointment. The minimum wage for non-tipped workers will remain at $13.35 per hour. On January 1, minimum wages went up in 20 states. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. Eagan, MN 55121 In Chicago, the minimum wage paid to tipped employees will increase to $9.24 per hour for employers with 21 or more employees and $8.70 per hour for employers with 4-20 employees. After 2020, the county minimum wage will be subject to increases based on the CPI. . Optional Illinois Labor Law Posters 6 PDFS. and Terms of Service apply. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. Teenagers (under the age of 18) are not entitled to the minimum wage. In Cook County the . Copyright 2023 GovDocs, Inc. GovDocs is a registered trademark of GovDocs, Inc. Economic hubs of Denver, Seattle and Minneapolis, A jurisdiction with rate over $19 an hour. The MWO sets the lowest amount an employer must legally pay their employees. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. $14.00. Effective July 1, 2023, the District's Minimum Wage and Living Wage will increase to $17.00. endstream endobj startxref and Terms of Service apply. 2/2/2023 Job Shadow Day & more. Bellwood 7. But wage hikes have a worse effect on lower quality restaurants: A $1 increase in the minimum wage leads to a 14 percent rise in the likelihood a 3.5-star-rated (i.e., median-rated on Yelp) restaurant will close, according to the study. The hourly minimum wage in Cook County, Illinois, will increase to $13.35 for nontipped employees and $7.40 for tipped employees effective July 1, according to the county's minimum wage webpage on May 31. . 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