Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. Fortunately, these fines will only be a small fraction of the amount employers will have to pay in fines for violating the ordinance. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. By July 2022, Chicago businesses are required to post the new minimum wage notice in multiple languages. The citys ordinance also extends certain sexual harassment protections for workers. It also increases the minimum wage for young employees employed by religious institutions. 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. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. Contact. Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. Df&CA$g`@8/`5Lg`Z Local Minimum Wage 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. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. 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. Chicagos minimum wage increases each July 1st. The city estimates that more than 400,000 people will be affected by the minimum wage increase. 2020: $12.75. 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 This increase will hit most large employers in Chicago. Alaska Minimum Wage 2023 (right information). However, its important to note that this ordinance is subject to collective bargaining agreements, which may waive some minimum wage requirements. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD With these new measures, the City is reaffirming its commitment to our talented workers and demonstrating why we are one of the nation's leaders in protecting workers' rights.". The notices will be available to workers and business owners in English, Spanish, Polish, Simplified Chinese, Tagalog, and Korean by July 1, 2022. And now, as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market, many workers see participation in the labor movement as a key to higher wages. That means that even though inflation hit 8.6% in May, Jalen Carter, a top NFL draft prospect, charged with reckless driving and racing in fatal accident in Georgia, Greek transport minister resigns after head-on train crash kills at least 36, Southtowners: Evergreen Park art students win, Lemont successful at state, and more, Do Not Sell/Share My Personal Information. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL Last updated June 7, 2022. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. Groups like the Fight for $15 have pushed for higher minimum wages for years. Nonprofits must have at least 250 workers. Overtime pay equals time and a half of an employees regular pay rate. Your email address will not be published. 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. Mayor Lightfoot has worked tirelessly to ensure that Chicagos workers, especially the most vulnerable, are protected under Chicagos labor laws. She is reminding that employers must comply with the change. hbbd```b``"H; 5Dc0y L'`2D2 m_&II1`Y#)V"= 6R*Dr L W,R $8rF` !v "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. %PDF-1.6 % Who Qualifies . The citys minimum wage increases are laid out in its minimum wage ordinance. Copyright 2023 NBCUniversal Media, LLC. 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. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. 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. But, what will it cost you? But July 1, that rate is set to increase, according to officials. These recommendations. 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. 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. 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. Read more: Does Marshalls Take Apple Pay? Deerfield-based Walgreens announced last year it would raise starting wages to $15 an hour for all workers by November of this year. 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. Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. ). 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's current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with . New minimum wages in effect July 1 for Chicago, Cook County . Click any state for details about the minimum wage, exemptions, and other state labor laws. Learn more atLearn more at Chicago.gov/COVIDVax. Last year, the minimum wage was $11 and $6.60, respectively. #{b,Ap)$B9(fpBKU RV0DX:]tkY#=m^ou`11: %?\N*H(UaAy.!Nj&iN}`fL'O!dFeM4'=/![bZTtY,|G1}u? endstream endobj 270 0 obj <>stream Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July. "Now I will have to keep going higher and higher than the minimum wage because a lot of people don't want to work for minimum wage," Owner Laricia Baker told the I-Team. 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. Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. 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? Notice effective on July 1, 2022. The minimum wage in Chicago and suburban Cook County increased Friday and in the city, new parts of the Fair Workweek Ordinance took effect. 0 For smaller businesses with 4-20 employees, the increase is delayed until 2022. The increase, of 40 cents for workers at the city's large employers, comes at a time. 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. Several big measures are going into effect July 1 in Chicago, one of them being an increase in the city's minimum wage. In partnership with Mayor Lightfoot, we are continuing our commitment to provide working families sustainable wages and work schedule certainty.. Heres what you need to know. July 1, 2022. 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 Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme. Several factors influence the minimum wage in Chicago, including the economy and the number of jobs available. In addition to the city's minimum wage increase on July 1, certain industries in Chicago including healthcare, hotel, restaurant, retail or warehouse, at that time will also be required to post work schedules with at least 14 days' notice, an increase form the previous 10 days' notice. 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) . The OLS is dedicated to promoting and enforcing Chicagos labor laws, including Minimum Wage, Paid Sick Leave, Fair Workweek, and Wage Theft Ordinance. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. Under Illinois law, the minimum wage for workers aged 18 and over is $11.00 per hour as of January 2021. Copyright 2023 NBCUniversal Media, LLC. hb```R ce`axpSIi~r[?; (J30X03g'w5$: 3g0`[!WX?q;l^ J`G[( H Nixle is increasing Chicagos minimum wage because we believe a fair days pay is part of our longstanding commitment to safety in the workplace. Another exception is for young employees those 24 or younger of religious corporations or organizations. Mayors Press Office 312.744.3334 press@cityofchicago.org, Elisa Sledzinska 312.744.1973 Elisa.Sledzinska@cityofchicago.org. My Future. Call the Office of Labor Standards at 312-774-2211 or email bacplaborstandards@cityofchicago.org. You can find a list of highest and lowest minimum wage rates here . Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. 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. July 1,2022 Effective Date. 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. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. 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. What Is the Minimum Wage in Chicago? A $1 increase in Illinois' minimum wage is set to take effect on New Year's Day 2022. . "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. The citys minimum wage is not just a piece of legislation, it also influences employment. 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. Copyright 2023 WLS-TV. The ordinance also sets a cap of 2.5% on annual increases, so the minimum wage in Chicago cant go above that. So she's looking forward to the increase. (Jose M. Osorio / Chicago Tribune). "Employers need to know that these wage increases are not optional. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. 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. Companies in Chicago with 21 employees or more will need to pay workers at least $15.40 an hour. particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. At "Can't Believe It's Not Meat" in Old Town, owners said they already pay more than the minimum wage. Its expected to increase by less than 3%, a tenth of that amount. The increase will affect tipped employees as well. 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. 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. 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. Retaliation is prohibited. State 2022 Minimum Wage 2023 Minimum Wage (effective 1/1/23 except as noted) Alabama : $7.25 (Federal, no state minimum) Alaska : $10.34: $10.85: Arizona : $12.80: $13.85: Arkansas : $11.00 : California : $15.00 for businesses with 26+ employees; $14 for businesses with 25 or fewer employees: 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. 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. In the context of the fair workweek ordinance, a large employer is one that has 100 or more employees. SeaTac: $19.06/hr. 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. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. On January 1, the Illinois minimum wage increased to $12 an hour. Lightfoot said the move is a victory for working class employees who are the backbone of the city. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. 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 What will your paycheck look like? Domestic workers like those in childcare and home health services must be paid the same, regardless of the size of the company. 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. The Chicago Fair Workweek Ordinance requires that employers notify employees of schedule changes 14 days in advance. Chicago minimum wage will increase by 40 cents to $15 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. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. Content 2023 Minimum-Wage.org, all rights reserved. The federal minimum wage rate was raised to $7.25/hour in 2009. 2023 Minimum Wage Rates By State Get a Federal all-in-one labor law poster State Minimum Wage Rates 2022 vs. 2023. 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. Chicago minimum wage in 2022 will be $14 or $15, depending on the number of employees and the size of the business. {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D Chicago minimum wage 2023, what is? 2023: $15. Those smaller businesses will then continue to see minimum wage increase by 50 cents per year to reach $15 an hour by 2023. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; Youth Workers . 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. 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 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). 266 0 obj <> endobj 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? 2019: $12. 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. Ultimately, this will be a boon for low-income workers in Chicago. 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. All rights reserved, Cook County's Minimum Wage To Increase July 1, Women Are Still Paid 83 Cents for Every Dollar Men Earn. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago's youth looking for summer employment opportunities. Eligible youth can find qualifying opportunities by downloading the My CHI. Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. And, the rate is higher outside the city limits. 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. 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. 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. Chicago has been a leader in worker protections, and the upcoming changes reflect the Citys commitment to creating financial opportunity for all Chicagoans. And that $15 an hour would make a difference for so many, especially for . Anyone . Starting July 1, the minimum wage for tipped employees will rise to $7.40. For businesses. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Federal Minimum Wage | If a tipped workers wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. 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 $12.00 on July 1, 2022. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower. endstream endobj 267 0 obj <>/Metadata 5 0 R/OCProperties<>/OCGs[298 0 R]>>/Outlines 9 0 R/PageLayout/SinglePage/Pages 264 0 R/StructTreeRoot 12 0 R/Type/Catalog>> endobj 268 0 obj <>/ExtGState<>/Font<>/Properties<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 269 0 obj <>stream %%EOF By 2025, after increasing on schedules that vary by size and other factors, all businesses and workers in Chicago will have the same minimum wage citywide. The citys minimum wage policies and exceptions can be complicated. BACP will host free informational webinars to prepare employers for the upcoming changes to Chicagos Labor Standards Laws. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. Raising the minimum wage has lifted up thousands of workers throughout Chicago, and especially during these times of inflation and uncertainty, every cent counts, said Bob Reiter, President of the Chicago Federation of Labor. "u$G 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. Help us keep Minimum-Wage.org up-to-date! 2023 minimum wage announcement poster. For instance, employees under the age of 18 must be paid $12 an hour. 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. What is the minimum wage in Chicago? In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. 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. The minimum wage, its just, its fair, it gives people a living wage, said Andy Fox, the director of Chicagos Office of Labor Standards. 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 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. 0 "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.". 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