Groups like the Fight for $15 have pushed for higher minimum wages for years. 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. Instead you can report it. So she's looking forward to the increase. 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 citys unemployment rate meets or exceeds 8.5% in a given year, there will be no minimum wage increase the next year. 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. 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. And for tipped workers, the rates increased to $9.24 for large employers and $8.70 for smaller businesses. Either way, this law goes into effect next month, and itll take time to see just how well it works (or doesnt) for everyone involved. Ultimately, this will be a boon for low-income workers in Chicago. The citys ordinance also extends certain sexual harassment protections for workers. #{b,Ap)$B9(fpBKU RV0DX:]tkY#=m^ou`11: %?\N*H(UaAy.!Nj&iN}`fL'O!dFeM4'=/![bZTtY,|G1}u? 0 as the country sees a wave of union organizing facilitated in part by pandemic conditions and a tight labor market. Get an Illinois all-in-one labor law poster. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. 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. By this date, the notices must be posted in multiple languages. 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. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. 2022: $14.25. 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. As of July 1, 2022, the Minimum Wage to be paid under City contracts or concessionaire agreements pursuant to the Order is $16.00 per hour. In 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. Heres what you need to know. July 1,2022 Effective Date. The COVID-19 vaccines are safe and effective, and are an important tool for ending the global pandemic. 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 Is the Minimum Wage in Chicago? If you are not seeing the minimum wage increase in your paycheck and you think you should be getting it, you may want to avoid confronting your boss. 2023: $15. If they fail to do so, they can be fined between $500 and $1,000 per day. As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. July 1, 2022. }y>"e't:ikz1(ET&Mj^|M2FeI;oWym?RV:G\d~~QgqVpVx!nMr{:fBbZ[A >[m;!av$voedkubG|D,Wql1.DUYEj-xkI='aZ?]aoe!NvJR6l9c0'(!t,x|?N_{yuy#olII>]vd$Z#{gh?ECc+Rv-H You have probably asked yourself this question before. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. They plan to pay even more at all three of her locations to stay competitive and keep workers. The federal minimum wage rate was raised to $7.25/hour in 2009. For businesses. hb```R ce`axpSIi~r[?; (J30X03g'w5$: 3g0`[!WX?q;l^ J`G[( H 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). Industries covered by the ordinance are health care, hotels, restaurants, retail, warehouses, manufacturing and building services. "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. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. 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. Copyright 2023 NBCUniversal Media, LLC. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. Aside from the fines, employers will be forced to post the minimum wage notices in multiple languages. Who Qualifies . They must be paid at least $12 an hour. Chicago's current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with . The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. The cohort of workers covered under the ordinance will also expand. Read more: Does Marshalls Take Apple Pay? "Employers need to know that these wage increases are not optional. Help us keep Minimum-Wage.org up-to-date! The minimum wage for medium-sized employers increased 50 cents this year. However, Chicagos minimum wage will rise to $15 per hour in 2022, and its expected that the increase will continue to rise toward that number. Click any state for details about the minimum wage, exemptions, and other state labor laws. It will continue to increase every year, linked to the Consumer Price Index and capped at 2.5%. At "Can't Believe It's Not Meat" in Old Town, owners said they already pay more than the minimum wage. Alaska Minimum Wage 2023 (right information). CHICAGO (WLS) -- The minimum wage in Chicago and suburban Cook County increased Friday. 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's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. endstream endobj 271 0 obj <>stream Fully updated for March 2017! The citys minimum wage increases are laid out in its minimum wage ordinance. 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. Those smaller businesses will then continue to see minimum wage increase by 50 cents per year to reach $15 an hour by 2023. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. Even if you work outside of Chicago, you may be paying less than the minimum wage. Is any of our data outdated or broken? Notice effective on July 1, 2022. Call the Office of Labor Standards at 312-774-2211 or email bacplaborstandards@cityofchicago.org. Several factors influence the minimum wage in Chicago, including the economy and the number of jobs available. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. HV[o6~8}Ur!6D@Q{pd'KziwC{)}. "Raising the minimum wage to $15.40 and requiring employers to post schedules 14 days in advance not only protects the rights of workers but creates better economic opportunity for all residents. Vaccines protect you and the people around you, reducing the spread of COVID-19. ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL The city estimates that more than 400,000 people will be affected by the minimum wage increase. 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. It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. 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. {5Hx+"Z)= mA*{b/`Hc^ U]Z`r_h8?dH`dt?l8rWpH&B1` D 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. BK Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense. Employers who violate the notices may face fines of $500 to $1,000 per day. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. 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? Every July 1, Chicagos minimum wage increases per the Minimum Wage Ordinance. 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. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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 minimum wage is not just a piece of legislation, it also influences employment. 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