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. 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. Employees Who Receive Tips: The minimum cash wage payable to employees who receive tips is $2.23 per hour. Employees working on a "commission only" basis must receive at least the minimum hourly wage for the time they spend working. According to the Department of Business Affairs and Consumer Protection, Chicago minimum wage is not keeping pace with national inflation. hb```R ce`axpSIi~r[?; (J30X03g'w5$: 3g0`[!WX?q;l^ J`G[( H It increases each year based on the Consumer Price Index and continues to climb towards $15 an hour by 2023. Copyright 2023 Minimum Wage | Powered by Astra WordPress Theme. The Chicago minimum wage also applies to Subsidized Temporary Youth Employment Programs like those catering to Chicago's youth looking for summer employment opportunities. Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses. During the pandemic, some employers, particularly those in the restaurant, retail and travel industries, have upped starting wages to $15 or higher. Who Qualifies . At "Can't Believe It's Not Meat" in Old Town, owners said they already pay more than the minimum wage. Covered industries include building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services. 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? Companies with wage floors at $15 or higher include big employers like Target, Costco and Amazon. 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 $14.50 for smaller businesses. Chicago minimum wage will increase by 40 cents to $15 per hour. Vaccines protect you and the people around you, reducing the spread of COVID-19. The minimum wage for workers at companies with more than 20 employees increases to $15 per hour starting July 1 under an ordinance passed in November 2019. The ABC 7 I-Team found out who may and may not benefit, and breaks down the numbers in your paycheck. Until this year, the minimum wage for larger employers in Chicago increased $1 per year. Chicago's minimum wage is going up Thursday. Overtime pay equals time and a half of an employees regular pay rate. The OLS is dedicated to promoting and enforcing Chicagos labor laws, including Minimum Wage, Paid Sick Leave, Fair Workweek, and Wage Theft Ordinance. 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). Arrest warrant issued for top NFL Draft prospect Jalen Carter, ABC7 Chicago says farewell Meteorologist Phil Schwarz, $1M winning Powerball ticket sold in Chicago. hbbd```b``"H; 5Dc0y L'`2D2 m_&II1`Y#)V"= 6R*Dr L W,R $8rF` !v The state minimum wage in Illinois is $12; the federal minimum wage sits at $7.25. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. Youths who work over 650 hours per year are entitled to the regular minimum wage. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. The minimum wage for the 2022 calendar year for large and small employers is set forth in the table below: 2022 Minimum Wage. She is reminding that employers must comply with the change. Instead of printing out pages of mandatory Illinois and Federal labor law posters, you can purchase a professional, laminated all-in-one labor law poster that guarantees compliance with all Illinois and federal posting requirements. %PDF-1.6 % hbbd```b``@$gj9` % TEdDH4) Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate. workers are guaranteed Chicago's minimum wage - even those working for Employers with fewer than four workers. (MCMF) mobile app,which is aresource designed to help teens and young adultseasily find out-of-school programs, events, resources, jobs, and more. For Large Employers (501 or more employees) $17.27/hour: For Small Employers (500 or fewer employees) Does employer pay $1.52/hour toward medical benefits and/or does employee earn $1.52/hour in tips? 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. 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) . Chicagos minimum wage is now at $15 per hour, four years before the state is set to reach that bench mark. The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. "That's a little more money you can buy groceries with," says Rosemary Coleman who is ready to see more money in her paycheck. 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. TheBACP OLS webpageoffers informational materials on Chicagos Labor Standards Laws. Lightfoot said the move is a victory for working class employees who are the backbone of the city. For medium-sized companies with between four and 20 employees, workers must make a minimum of $14.50 an hour, up from $14 last year. 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 federal minimum wage is $7.25 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. 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. 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. The city is raising its minimum wage every year, as mandated by law. %%EOF endstream endobj 271 0 obj <>stream Last updated June 7, 2022. It will reach $15 on July 1, 2023. "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.". Last year, the minimum wage was $11 and $6.60, respectively. Another exception is for young employees those 24 or younger of religious corporations or organizations. 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: Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. Chicagos minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. Until this year, the minimum wage was increased by $1 a year, pegged to the Consumer Price Index and capped at 2.5%. 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 2022, the hourly minimum wage in Chicago is $15.40 for businesses with more than 20 employees or $9.24 for tipped workers. Employers that violate the minimum wage ordinance can be fined $500 to $1,000 per day for each offense. HVNI}Gj#EDq2L:fY~O_flIOWwWSvu\]_'+z:XWjrEV\ kJ`}xr3[._GC*CFCAQ4+68$T\d4|{DQT'j=JpZ=p6?)4=/&'a[TLA {$BXj'Tb%z K2t7&'-u |pip74hH#-Q&st`21A ng|R!j =}7"1h((%km3#"39HMRhB%aD--1~wNN8bdFNHtq@ R; 9BiN2z2&PDd`:fnBI![Tnw RJJjy-QBrQ&[koiN6tdGJdR~JF;.FmU*:ZEjkx85H7^u,':,[hX\)3B>L[rzbD0+Tt(=E]Y?r=eRI\5s\ In Chicago, enhancements to the Fair Workweek Ordinance take effect, which require employers in covered industries to post work schedules with at least 14 days' notice. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. f you want to learn about Arkansas minimum wage, you can click on it. The citys minimum wage policies and exceptions can be complicated. According to state law, teenagers under the age of 18 must be paid at least Illinois' current youth minimum wage, which is $9.25. Chicago's minimum wage is set to increase Friday, when it will rise above $15 per hour for the first time. SEIU Healthcare Illinois, the citys labor standards office, was a leading advocate for the Fight for 15 and is a leading advocate for the Chicago minimum wage. We've worked with the city to ensure in comprehensive enforcement of our city's labor laws," she said. Chicago minimum wage in 2022 will be $14 or $15, depending on the number of employees and the size of the business. 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.". Chicago is currently experiencing skyrocketing inflation and the increase in the minimum wage will make things more affordable for many Chicagoans. It depends on what you do and how many employees there are at your company. So, if youre wondering: what is minimum wage in Chicago 2022? 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. 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. Chicago has a long, proud history of being allied with workers, both promoting and protecting their rights, said Mayor Lightfoot. 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. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size. As noted by the Illinois Department of Labor, the state's minimum wage is $12.00 per hour for untipped employees who are at least 18 years old. If the unemployment rate is more than 8.5%, the minimum wage will not increase at all. The increase will affect tipped employees as well. 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. Eligible youth can find qualifying opportunities by downloading the My CHI. Beginning July 1, 2022, employers in Chicago must post a Minimum Wage Notice and Fair Workweek Notice. The minimum wage increase comes just in time for those struggling as the cost of everything is going up. Our city's labor laws, including the minimum wage, are an important backbone of our city's economy and provide stability to working families. "We were the first city in the state to get to $15 and its going up today," she added. 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. Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size. Copyright 2023 WLS-TV. In todays competitive labor market, Chicago has proven itself as a worker-friendly city. endstream endobj startxref You have probably asked yourself this question before. 0 In raising the minimum wage, the city continues to be a leader in advocating for equitable job opportunities to lift up residents in all of Chicago's 77 neighborhoods.". 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? 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 $7.40 for tipped workers. Additionally, any employee that works two hours or more in the City within a two-week period must also receive at least the Chicago minimum wage. uJ(\cZYy:8-_Sg8W8gjcAn~k_65c%M'6nr Z1?vc33D$(MTfJ/`\b9{iN&D!w5v2eO>(p_MO%~|sp^0C9d20eeR1=7{Z#*"ng5Z03,>,b[]/2.R7Bw1}#aXYk(Ri8s4T7io7. R wy8yM`?xioUrX/ !f ikM#ri >wq{^[#[k-VH8%Hz[ctloe=$Y"T5JvW]o_~{Wj*0uDY[N}.}Gg; NL What is the minimum wage in Chicago? 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. 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 increase will raise Chicago's minimum wage by $0.50 per hour. This increase will be a 40 cent increase over the current minimum wage, which is $7.25 an hour. Instead you can report it. 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. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. Is any of our data outdated or broken? The table below lists the current prevailing 2023 minimum wage rates for every state in the United States. For smaller businesses with 4-20 employees, the increase is delayed until 2022. Df&CA$g`@8/`5Lg`Z 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 The minimum wage for medium-sized employers increased 50 cents this year. / MINIMUM NA SAHOD / , Mailing ListIf you wish to be added to our mailing list for the Office of Labor Standards updates, announcement and notices, please email us at bacplaborstandards@cityofchicago.orgOther ResourcesPaid Sick Leave Ordinance Information Fair Workweek Ordinance InformationAnti-Retaliation Ordinance InformationVaccine Anti-Retaliation Ordinance InformationOffice of Labor Standards, 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), Vaccine Anti-Retaliation Ordinance Information. In Illinois, tipped employees may make $7.20 per hour in 2022. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. would raise starting wages to $15 an hour for all workers. The $15 per hour minimum wage starting in Chicago on Thursday makes it the highest minimum wage in Illinois currently - though the state will eventually reach $15 an hour as well. 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. The minimum wage for workers at companies with more than 20 employees increases to $15 per hour starting July 1 under an ordinance passed in. Get an Illinois all-in-one labor law poster. Groups like the Fight for $15 have pushed for higher minimum wages for years. The increase, of 40 cents for workers at the citys large employers, comes at a time when many Chicagoans are struggling with the effects of sky-high inflation. All Domestic Workers must receive at least the $15.40 minimum wage. The city estimates that more than 400,000 people will be affected by the minimum wage increase. Even if you work outside of Chicago, you may be paying less than the minimum wage. Chicago businesses are required to post theMinimum Wage NoticeandFair Workweek Noticeat their business. *> 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. The citys minimum wage increases are laid out in its minimum wage ordinance. Mayors Press Office 312.744.3334 press@cityofchicago.org, Elisa Sledzinska 312.744.1973 Elisa.Sledzinska@cityofchicago.org. 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