Under federal law, employers must notify tipped employees that the employer is taking the tip credit, including any changes to their rate of pay. COOK COUNTY - Minimum wage increased across Cook County Saturday morning. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. All Rights Reserved. State minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). A campaign to raise the minimum wage has captured headlines throughout Illinois in May and June. As of 12/31/2022. The MWO sets the lowest amount an employer must legally pay their employees. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. The Chicago City Council and Cook County Board effectively admitted that wage hike mandates can depress employment when they included unemployment escape clauses in the ordinances. July 1,2022 Effective Date. This year the unemployment rate did not warrant the recessionary breaker, but the 8.3% April CPI exceeded the inflationary cap, so the 2.5% cap rate was used. Notice effective on July 1, 2022. 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. 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. c`f^
g`f@W00ke` E
Teenagers (under the age of 18) must be paid the States minimum wage of $9.25. Cook County municipalities opting out of minimum wage, sick leave ordinances (107): Alsip, Arlington Heights, Barrington, Bartlett, Bellwood, Bensenville, Berkeley, Blue Island, Bridgeview, Broadview, Brookfield, Buffalo Grove, Burbank, Burnham, Burr Ridge, Calumet City, Calumet Park, Chicago Heights, Chicago Ridge, Country Club Hills, Crestwood, Des Plaines, East Dundee, East Hazel Crest, Elgin, Elk Grove Village, Elmwood Park, Evergreen Park, Flossmoor, Ford Heights, Forest Park, Forest View, Harvey, Hazel Crest, Glenview, Glenwood, Golf, Hanover Park, Harwood Heights, Hickory Hills, Hillside, Hinsdale, Hodgkins, Hoffman Estates, Homewood, Hometown, Indian Head Park, Inverness, Justice, La Grange, La Grange Park, Lansing, Lemont, Lincolnwood, Lynwood, Lyons, Markham, Matteson, Maywood, Melrose Park, Merrionette Park, Midlothian, Morton Grove, Mount Prospect, Niles, Norridge, North Riverside, Northbrook, Northlake, Oak Forest, Oak Lawn, Orland Hills, Orland Park, Palatine, Palos Heights, Palos Park, Park Forest, Park Ridge, Posen, Prospect Heights, Richton Park, River Forest, River Grove, Riverdale, Riverside, Rolling Meadows, Roselle, Rosemont, Sauk Village, Schaumburg, Schiller Park, South Barrington, South Chicago Heights, South Holland, Steger, Stickney, Stone Park, Streamwood, Summit, Thornton, Tinley Park, Westchester, Western Springs, Wheeling, Willow Springs, Wilmette, Worth, Cook County municipalities opting out of minimum wage ordinance, complying with sick leave ordinance (3): Cicero, Dixmoor, Franklin Park, Cook County municipalities opting out of sick leave ordinance, complying with minimum wage ordinance (1): Bedford Park, Cook County municipalities complying with the minimum wage and sick leave ordinances (13): Barrington Hills, Berwyn, Countryside, Deerfield, Evanston, Glencoe, Kenilworth, McCook, Northfield, Oak Park, Palos Hills, Skokie, Winnetka, Awaiting response (4): Dolton, Olympia Fields, Phoenix, Robbins, Chicago Office | Illinois Policy
Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days' sick leave While the federal minimum wage is $7.25 per hour, and Illinois' statewide minimum wage is. Illinois
A study released in December 2015 by University of California, San Diego Assistant Professor of Economics Jeffrey Clemens reveals that minimum wage increases between 2006 and 2012 reduced employment for people ages 16 to 30 with less than a high school diploma by 5.6 percentage points. Again, this increase may not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. Eagan, MN 55121 Gov. 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . 6-105-010 Definitions. Increases in minimum wages can drive some firms out of business entirely. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). In addition to the minimum wage increases July 1, Chicago businesses in health care, food service, retail and warehouses must release work schedules 14 days in advance instead of 10 because of a change in city rules. A bill to raise the Illinois minimum wage to $15 an hour by 2022 passed the Illinois Senate and House of Representatives in May. 6-105-020 Minimum hourly wage. Cook County, which has its own minimum wage ordinance, will also increase its minimum wage on July 1, from $13 to $13.35 for non-tipped workers . $8.75 (for employers offering specified health benefits) $9.75 (for all other employers) 802 South 2nd Street | Springfield, IL 62704
2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Concerns for the effect on local businesses have played a significant part in many opt-out discussions. Workers under 18 will see a $12 minimum wage for non-tipped jobs, and $7.20 for tipped. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy
Pursuant to the MWO (Sec. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices., Minimum wage hikes can drive companies out of business. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? Effective Jan. 1, the minimum wage for tipped workers increases to . Starting July 1, minimum wage in Chicago will increase by $1 to $14 per hour for employers with more than 21 workers. Illinois
After 2020, the county minimum wage will be subject to increases based on the CPI. Cook Countys minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Emmanuel Elone . 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 . Ordinance No. Across the state, inflation has far exceeded wage growth. Statewide, black Illinoisans had a jobless rate of 12.7 percent in 2016, according to Bureau of Labor Statistics data; Illinois is tied with Nevada for the highest black unemployment rate in the nation. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. Cook County Minimum Wage (December 2022) Effective January 1st, 2023, the minimum wage in Cook County will increase to $7.80 per hour for tipped workers. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. You will find a full list of new rates for large employers, including: Note: State wage rates are not included in this guide, nor are tipped wages, industry-specific rates or rates for employers of other sizes. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. The new wage will be $12 an hour. Editor/Writer . And while a large chain might be able to absorb the costs of a minimum wage hike by hiring fewer new employees, these costs impose greater hardships on small businesses. *%: M'pe`l;j Last year, the minimum wage was $11 and $6.60, respectively. The tip credit notice need not be in writing, but it is a best practice to provide a written notice and have employees acknowledge receipt. 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The Daily Herald reported that the Des Plaines City Council voted to opt out of the ordinances June 19, reversing a previous decision to go along with the laws. July 1, 2022; Evanston: $12.00 per hour: $13.00 per hour: $13.00 per hour: $13.35 per hour: Chicago: $13.00 per hour: $14.00 per hour: $15.00 per hour: . 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD 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. Hikes in the minimum wage can make it more expensive for employers to hire relatively inexperienced teens, and can contribute to unemployment among young people. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy
Chicago Office | Illinois Policy
Please enter valid email address to continue. In the city of Chicago beginning July 1, minimum wage for employers with 21 or more employees with be $15.40, and $14.50 or smaller employers. Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. The study authors noted that according to U.S. Bureau of Labor Statistics data, the restaurant industry uses minimum wage workers more than other sectors. 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 black unemployment rate in Illinois is more than double the states jobless rate for white residents. 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. comeback
All Domestic Workers must receive at least the $15.40 minimum wage. Copyright 2023 NBCUniversal Media, LLC. 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. While the federal minimum wage is $7.25 per hour, and Illinois statewide minimum wage is currently $8.25 per hour, the city of Chicago and Cook County have each hiked their minimum wages even higher. 1-Year Compliance Plan Best value The easiest way to stay compliant. %PDF-1.6
%
16-5768, 42-11, 10-26-2016.) In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . 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. 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. CHICAGO - The minimum wage in Illinois is set to increase at the start of 2023. starts here. July 1, 2022 Minimum Wage. $14.00. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. 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. $13.00 (No Change) $7.20 5 (60) $5.80 (-60) Maine. Typically, workers should be paid the wage for the county where you work 50% or more of . The minimum wage is $6.60 for tipped employees. Research on minimum wage laws backs up their sentiments. 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. Effective January 1, 2023, the minimum wage for tipped workers increases to $7.80, in alignment with the Illinois State minimum wage. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. Wages at smaller businesses will increase to $13.50. The number of Cook County municipalities that have opted out of both ordinances has climbed to 107. June 1, 2022 / 6:19 PM / CBS Chicago CHICAGO (CBS) - In just a month, minimum wage in Cook County will increase from $13 an hour to $13.35 an hour for non-tipped workers. Cook's Minimum Wage Ordinance does not apply to the city of Chicago, which has its own Ordinance. If a suburb opted-out, the Illinois minimum wage applies. Of these, 26 raised their minimum wages on January 1. i Table 2 shows these New Year's Day increases. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices.. In Cook County the . Alsip 2. That report revealed that the employment rate for low-wage workers fell by about 1 percentage point, and the number of hours worked by low-wage workers lagged behind those of similar workers in the region. Bartlett 5. 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. This ordinance requires that all employers who contract with Cook County government to provide labor or who operate on property in Cook County that receives a Class 6B, Class 8 or Class 9 property tax incentive pay their employees not less than a living wage as determined annually by Cook County's Chief Financial Officer. What to Know About the 2 Candidates Facing Off in the April 4 Runoff Election, All Eyes On a Strong' System That Could Hit Chicago Area Friday, But Much Uncertainty Remains, Secret Service, Police Seen Investigating Business in Suburban Lisle, Who Did Your Ward Vote For? It is not to be used as a substitute for legal advice or counsel. The MWO sets the lowest amount an employer must legally pay their employees. Pay depends on the type of job, size of company, age of the worker and more. After hearing from dozens of protesters, Mayor Anan Abu-Taleb said Oak Park would not vote on a short-term opt-out of the Cook County minimum wage ordinance. Any time worked in 2022 must reflect the new $12 an hour minimum wage. . Connecticut. 302 0 obj
<>
endobj
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. Illinois
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., Minimum wage hikes can drive companies out of business. In Cook County, young black residents in particular suffer from high rates of joblessness, with more than one-third of the countys black 20-to-24-year-olds out of both school and work in 2015, according to a June 2017 report by researchers at the University of Illinois-Chicago. Nevada. 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. The unemployment rate in Cook County for the previous year was equal to or greater than 8.5%. For Cook County and Chicago, the minimum wage goes up, effective Friday, July 1. In 2022, while the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees, several states' minimum wage rates will increase. 1305 Corporate Center Drive Employers can contact the Cook County Bureau of Finance for advice regarding compliance with the Cook County Living Wage Ordinance. -Cook County. 6-105-030 Minimum hourly wage in occupations receiving gratuities. And minimum wage hikes canreduce job opportunitiesin minority communities. According to Cook County's Minimum Wage Ordinance, the minimum wage each year increases according to a formula set by the Ordinance, and applies to hourly, salaried, and tipped employees, over the age of 18 working in Cook County, and those who may be working within the County to make deliveries or driving within County limits. 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. Rosemont, for example, is home to Allstate Arena, Rivers Casino is located in Des Plaines, and Arlington Heights has the Arlington International Racecourse. 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. 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) But if 8.5 percent countywide unemployment is high enough to halt increases in the minimum wage under the ordinance, shouldnt the states 12.7 percent black unemployment rate and the fact that 34.3 percent of Cook County 20-to-24-year-old black residents are out of both school and work give lawmakers pause? Teenagers (under the age of 18) are not entitled to the minimum wage. 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 minimum wage for tipped employees in suburban Cook County will increase to $7.40 per hour. Neither scenario will be friendly for Illinoisans, however they appear unavoidable as record spending and wide-spread federal stimulus coupled with supply chain disruptions and pent-up demand from COVID-19 have created our current inflationary environment. State of Illinois Minimum Wage and Tipped Wage, Cook County Tipped Wage Increase as of January 1, 2022. Employers should provide new tip credit notices every time a tipped employees wage rate changes. Suite 400 In the event that the Cook County . Bedford Park 6. and Terms of Service apply. 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. The updates can be viewed in EPI's interactive 1-888-273-3274. On January 1, minimum wages went up in 20 states. A study released in December 2015 by University of California, San Diego Assistant Professor of Economics Jeffrey Clemens reveals that minimum wage increases between 2006 and 2012 reduced employment for people ages 16 to 30 with less than a high school diploma by 5.6 percentage points. Published January 1, 2022. 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. 802 South 2nd Street | Springfield, IL 62704
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.. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. Cook County Government. !function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r