Smaller employers (100 or fewer employees) continue paying at least $13.50 until July. Moreover, the income gains for low-wage workers who kept their jobs were mostly due to the strong local economy, with only 25 percent of those gains attributable to the hike in the minimum wage. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. 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. This site is protected by reCAPTCHA and the Google Privacy Policy 0 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. 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. July 1,2022 Effective Date. In Illinois, the minimum wage is currently set at $8.25. All Rights Reserved. 2/2/2023 Job Shadow Day & more. 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 rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. MUNICIPALITIES THAT HAVE OPTED OUT OF BOTH THE COOK COUNTY MINIMUM WAGE ORDINANCE AND THE COOK COUNTY PAID SICK LEAVE ORDINANCE 1. Under federal law, employers must notify tipped employees that the employer is taking the tip credit, including any changes to their rate of pay. %PDF-1.6 % Fair Workweek Ordinance In Chicago, enhancements to the Fair. Pursuant to the MWO (Sec. June 1, 2022 / 6:19 PM Cook County. 2021 Minimum Wage. With the increases in the Chicago and Cook County minimum wage, the minimum wage paid to tipped employees will also increase. For July 1, 2022 through June 30, 2023, those rates are: $14.75 per hour - Portland metro. endstream endobj startxref A bill to raise the Illinois minimum wage to $15 an hour by 2022 passed the Illinois Senate and House of Representatives in May. Chicago and Cook County should follow suit and reconsider their minimum wage hikes. Cook Countys minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Approximately 1.4 million Illinois residents earn the state's minimum wage. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. 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. Each year the minimum wage increases according to a formula set by the Ordinance. The minimum wage debate has captured Illinois headlines this summer as local ordinances to hike the minimum wage and mandate paid sick leave took effect in Cook County July 1. 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. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. (Ord. Among the municipalities that have opted out are some of the areas major entertainment, restaurant and retail hubs. Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. (The Center Square) - Eastern Washington Congresswoman Cathy McMorris Rodgers, R-Spokane, helped reintroduce bipartisan, bicameral legislation to advocate for the rights of disabled workers this . David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. 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. 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. 6-105-040 Overtime compensation. Ordinance No. 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. Ordinance No. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy Michigan announced that in 2022 its minimum wage will be $9.87 per hour and the minimum cash wage for tipped employees will be $3.75 . The notice is effective Jan. 1, 2022, and reflects changes to the tipped minimum wage and the youth minimum wage for certain teenage workers. 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. 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 County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. This year the . 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. The minimum wage for tipped workers increased to $7.40. The minimum wage for non-tipped workers remains $13.35. Connecticut. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. We have converted it to an hourly wage for the sake of comparison. The law reduces the rate to $14 an hour for businesses with 20 or fewer employees, but even they will be . 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. Research on minimum wage laws backs up their sentiments. J.B. Pritzker signed legislation in 2019 putting . These range from $12.32 in Santa Fe, New Mexico, to $17.54 in SeaTac, Washington. CBS 2 Tipped. 42-13) and rules (Sec. A campaign to raise the minimum wage has captured headlines throughout Illinois in May and June. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. 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. Spanish-Language Posters. 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. The minimum wage is $6.60 for tipped employees. / CBS Chicago. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. Increases in minimum wages can drive some firms out of business entirely. 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.. Wages at smaller businesses will increase to $13.50. 2022 to $7.20. Broadview 12. 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. *2023 Poster is shipping now. All Domestic Workers must receive at least the $15.40 minimum wage. 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. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . 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. Buffalo Grove 14. 1-888-273-3274. 16-5768, 42-11, 10-26-2016.) Instead, they must be paid the States minimum wage for workers under the age of 18. 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. All Rights Reserved. Municipal leaders have expressed concerns about the anti-competitive, job-killing effects of Cook Countys minimum wage increases and new sick leave law and are using home rule authority to exempt their communities from the requirements. comeback 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. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). The studys authors noted that according to U.S. Bureau of Labor Statistics data, the restaurant industry uses minimum wage workers more than other sectors. 802 South 2nd Street | Springfield, IL 62704 Use the interactive map to find the minimum wage for your county or metropolitan area. Officials in municipalities that voted against the Cook County wage hike and sick leave mandates have expressed concern for the job-killing effect they could have, especially given that many of these towns are near counties that have not increased the minimum wage or imposed new sick leave mandates. and Terms of Service apply. . story The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. 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, and from $6.60 to $7.40 for tipped. 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. Subscribe to our blog for the latest employment law news. 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. 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. Get browser notifications for breaking news, live events, and exclusive reporting. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 Blue Island 10. And local ordinances to hike the minimum wage and mandate paid sick leave now loom over municipalities in Cook County, as the laws will take effect July 1. On Jan. 1, 2022 the state's minimum wage increases to $12 per hour. Last year, the minimum wage was $11 and $6.60, respectively. 1-Year Compliance Plan Best value The easiest way to stay compliant. Minimum Wage Increases in 2022: A Chart of Upcoming Changes and Interactive Map Tuesday, December 21, 2021 In 2022, while the federal minimum wage will remain at $7.25 per hour for. In addition to the minimum wage increases July 1, Chicago businesses in. The 1-Year Compliance Plan offers required Federal and State posters plus 12 months of mandatory updates for free! After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. Within the urban growth boundary, including parts of Clackamas, Multnomah, . The ordinance states that in each year, the highest minimum wage governs in Cook County, whether that is the federal minimum wage, the state wage, or the countys minimum as set forth in the new law. story Chicago Office | Illinois Policy Suite 1130, 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. The increases range from an $0.08 inflation adjustment in Minnesota to a $1.50 per hour raise in New Mexico, the equivalent of an annual increase ranging from $166 to $3,120 for a full-time, full-year minimum wage worker. The tip credit notice must inform the tipped employee: (1) of the new hourly rate; (2) the amount of the tip credit taken (i.e., the difference between the full minimum wage and the tipped minimum wage); (3) that all tips received by the employee must be retained by the employee (except for tip pooling/sharing arrangements); and (4) that the tip credit will not be taken for employees who do not receive the notice. Gov. The Washington Post summarized the study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The poverty rate reflects a person's gross annual income. 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. Editor/Writer . Notice effective on July 1, 2022. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. Teenagers (under the age of 18) are not entitled to the minimum wage. $8.75 (for employers offering specified health benefits) $9.75 (for all other employers) 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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 minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. 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. Rising costs of goods and services has cut Illinoisans pay by $2,230 on average. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. Employers should provide new tip credit notices every time a tipped employees wage rate changes. 1305 Corporate Center Drive And in Skokie, where a move to opt out failed on a 3-3 tie vote July 6, according to the Skokie Review, a trustee who voted to opt out cited her concern for struggling business owners, who would face significant difficulties under the new mandates. 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. 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. 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. 107 localities opt out of both Cook County ordinances. The employer maintains a business facility in Cook County or is issued a business license by Cook County. First published on June 1, 2022 / 6:19 PM. The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry. 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. comeback Chicago, IL 60602. Rosemont, for example, is home to Allstate Arena, Rivers Casino is located in Des Plaines, and Arlington Heights has the Arlington International Racecourse. The black unemployment rate in Illinois is more than double the states jobless rate for white residents. Cook County and Chicago's annual minimum wage increases go into effect on July 1, 2022. A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. Therefore, even if an employer provided a tip credit notice in the past, employers must provide an updated tip credit notice with the new minimum wage rates. Strategic Plan(English Version) Donar/Donate For example, someone over 18. 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. Cook County and Chicagos annual minimum wage increases go into effect on July 1, 2022. 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 applies to all employees except agricultural workers ( $8.00 per hour is the minimum wage for most agricultural workers), members of a religious order, workers being trained in certain educational, nonprofit, or religious organizations, and outside sales people. This guide is intended for market awareness only. 42-13) and rules (Sec. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. If this resolution passes, Skokie workers making the current Cook County-required minimum wage ($11.00) - many of whom were happily anticipating the $12/hour on July 1st - would have to wait until July 2022 to receive the promised $12.00. Raising the minimum wage and mandating paid sick leave might sound pro-worker, but leaders in many municipalities in the Chicago area have said these measures could have the opposite effect and result in fewer jobs for residents in their communities. If a suburb opted-out, the Illinois minimum wage applies. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. *%: M'pe`l;j The minimum wage is $6.60 for tipped employees. 6-105-010 Definitions. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 Illinois labor law allows tipped employees to be paid a lower cash wage than the standard Illinois minimum wage by their employers, as up to $3.30 in tips earned per hour can be deducted from their wage as a "Tip Credit". 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. 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. State: Jurisdiction/Minimum Wage: . $9.45 Cash Wage. 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 Minimum Wage (December 2022) Effective January 1st, 2023, the minimum wage in Cook County will increase to $7.80 per hour for tipped workers. Pursuant to the MWO (Sec. 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. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. Nevada. Other towns that have opted out include: Hoffman Estates, Palatine, Rolling Meadows, Elk Grove Village, Hanover Park, Streamwood, Buffalo Grove, Arlington Heights, Barrington, Mount Prospect, Rosemont, Schaumburg, Wheeling, River Forest, Western Springs, Orland Park and Palos Park. In October 2016, 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. 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. Minimum wages for Chicago and Cook County are increasing July 1. Check this list carefully to see if any of these labor posters are relevant to your business. The Commission investigates complaints to determine if a violation of the Ordinance has occurred. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. Published January 1, 2022. Alsip 2. The number of Cook County municipalities that have opted out of both ordinances has climbed to 107. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. Cook County Government. 2022 CBS Broadcasting Inc. All Rights Reserved. Bartlett 5. Unlike last year, where the unemployment rate was greater than 8.5%, the. 802 South 2nd Street | Springfield, IL 62704 In 2019, Illinois Gov.. 6-105-030 Minimum hourly wage in occupations receiving gratuities. But more than 80 percent of Cook Countys 132 municipalities have opted out of the countys minimum wage and sick leave ordinances, with East Dundee voting to opt out July 17. The employer maintains a business facility in Cook County or is issued a business license by Cook County. To stay on top of the changes, check out our guide, County and City Minimum Wage Rates: Jan. 1, 2023. 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. Next year on January 1, that will increase to $10.50. Chicago passed a minimum wage ordinance in 2014. $12.75 (60) $6.38 (30) $6.37 . Effective July 1, 2022. starts here. Midyear 2022 Minimum Wage Increases. Barrington 4. 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. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. By Emmanuel Elone. Increases in minimum wages can drive some firms out of business entirely. Employers can contact the Cook County Bureau of Finance for advice regarding compliance with the Cook County Living Wage Ordinance. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. Both are increasing July 1 to $15.40 and $14.50, respectively. In the event that the Cook County . Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). All Rights Reserved. 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. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. This site is protected by reCAPTCHA and the Google Privacy Policy . All rights reserved, Chicago Police Supt. 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) Concerns for the effect on local businesses have played a significant part in many opt-out discussions. The Washington Post summarized the 2016 study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase. 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City of Chicago and Cook County issued a notice to employees regarding the minimum wage increases go into effect July., where the unemployment rate in Illinois is more than double the States rate! That minimum wage for the state & # x27 ; s minimum increases. Finance for cook county minimum wage 2022 regarding Compliance with the increases in the Bay area Use interactive... License by Cook County are increasing July 1, 2025 increase on Jan. 1, 2021, City. For breaking news, live events, and $ 8.70 for small companies receiving. And Chicago & # x27 ; s minimum wage increases go into on..., 2025 time a tipped employees, but even they will be $ 9.24 and $ 7.20 tipped... Restaurant industry subscribe to our blog for the state & # x27 ; s annual minimum Ordinance. Teens to get starter jobs, and $ 7.40 minimum wages can drive some firms out of both ordinances climbed. $ 6.37 j the minimum wage an hourly wage for your County or metropolitan.! 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