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. 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. After 2020, the county minimum wage will be subject to increases based on the CPI. Editor/Writer . 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. More than 50 of Cook Countys 132 municipalities have used their home rule authority to opt out of the countys wage hike and sick leave mandate, and the number of municipalities considering opting out continues to climb, according to WBEZ. This guide is intended for market awareness only. Fair Workweek Ordinance In Chicago, enhancements to the Fair. 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. 2/2/2023 Job Shadow Day & more. Suite 1130, 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? Bartlett 5. 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. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD Chicago, IL 60602. On Jan. 1, 2022 the state's minimum wage increases to $12 per hour. 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. J.B. Pritzker signed legislation in 2019 putting . $9.45 Cash Wage. They will be based on percentage increases determined by the . 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. Effective Jan. 1, the minimum wage for tipped workers increases to . 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. comeback Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. 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. Instead, they must be paid the States minimum wage for workers under the age of 18. When applying an allowance for gratuities to the wage of City concessionaire employees in positions that customarily receive gratuities, the resulting rate is $8.20 per hour. 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. Gov. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. This site is protected by reCAPTCHA and the Google Privacy Policy Next year on January 1, that will increase to $10.50. Spanish-Language Posters. 6-105-020 Minimum hourly wage. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. Chicago passed a similar sick leave ordinance in 2016. What is the minimum wage in Cook County 2022? 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. 6-105-030 Minimum hourly wage in occupations receiving gratuities. 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. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. The "sub-minimum" hourly wage for tipped workers at small businesses (4-20 employees) will increase to $8.70; at large businesses (21 or more employees), it will rise to $9.24, according to a. The black unemployment rate in Illinois is more than double the states jobless rate for white residents. Employers with tipped employees have additional notice obligations. 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. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). and Terms of Service apply. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. Unlike last year, where the unemployment rate was greater than 8.5%, the. According to a 2011 study by the Employment Policies Institute, for every 10 percent hike in the minimum wage, employment declined 6.5 percent for 16-to-24-year-old black males without a high school diploma. If a suburb opted-out, the Illinois minimum wage applies. $13.00. Subscribe to our blog for the latest employment law news. In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. And minimum wage hikes canreduce job opportunitiesin minority communities. 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". In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . Complaint forms and additional informationcan be found online. Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. 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. Cook Countys minimum wage is based on the greatest rate among the Federal minimum wage, Illinois State minimum wage, or on the Countys calculation using the Consumer Price Index (CPI). Midyear 2022 Minimum Wage Increases. (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 . t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. Any time worked in 2022 must reflect the new $12 an hour minimum wage. (Ord. 802 South 2nd Street | Springfield, IL 62704 The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. Cook Countys minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Ordinance No. David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. 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 . 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. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. The MWO sets the lowest amount an employer must legally pay their employees. 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 . The 1-Year Compliance Plan offers required Federal and State posters plus 12 months of mandatory updates for free! 1305 Corporate Center Drive July 1, those rates will rise to $13.35 for non-tipped workers and $7.40 for tipped. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy 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. story 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. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. 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. The notice is effective Jan. 1, 2022, and reflects changes to the tipped minimum wage and the youth minimum wage for certain teenage workers. Table 2 Coverage depends on the physical location (in Minneapolis) of the employee while performing work, regardless of the employee's age. Both are increasing July 1 to $15.40 and $14.50, respectively. . Schaumburgs Woodfield Mall is a shopping destination with dozens of stores and eateries. 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. The county's hourly minimum wage will remain unchanged at $13.00. Cook County Government. Chicagos current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with four to 20 employees. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. 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. The MWO sets the lowest amount an employer must legally pay their employees. 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 rates apply differently depending on factors such as the size of the employer.) 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. The minimum wage is $6.60 for tipped employees. 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. May 31, 2022, 7:59 PM. FOX 32 Chicago. 0 And the Glenview board of trustees voted 4-1 on June 8 to opt out of Cook Countys minimum wage hike and sick leave ordinances, according to the Chicago Tribune. A campaign to raise the minimum wage has captured headlines throughout Illinois in May and June. 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. Eagan, MN 55121 *%: M'pe`l;j 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. 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. Cook County Government. 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . 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. Illinois 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 42-13) and rules (Sec. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. / CBS Chicago. 42-13) and rules (Sec. Back to Index. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Starting July 1, minimum wage in Chicago will increase by $1 to $14 per hour for employers with more than 21 workers. 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. 5 Although the county minimum wage exceeds the state rate, the state minimum cash wage (MCW . 42-13) and rules (Sec. 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. The ordinance phases in the increase: On July 1, 2017, the minimum wage rose to $10, and the level goes up by $1 each year after that until it reaches $13 in July 2020. 6-105-010 Definitions. Teenagers (under the age of 18) must be paid the States minimum wage of $9.25. dinance 3 FREQUENTLY ASKED QUESTIONS First published on June 1, 2022 / 6:19 PM. In addition, Chicago employers must provide all employees a notice of the minimum wage increases by July 31, 2022. 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. Chicago passed a minimum wage ordinance in 2014. Berkeley 9. Mandatory Cook County IL Labor Law Notices. The employer maintains a business facility in Cook County or is issued a business license by Cook County. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. The unemployment rate in Cook County for the previous year was equal to or greater than 8.5%. 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Bridgeview 11. 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. 42-13) and rules (Sec. All Rights Reserved. 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. 6-105-015 Procedures for payment of wages. As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. %%EOF 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.. The minimum wage for non-tipped workers remains $13.35. Illinois State Mandatory Updates. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 Employees who believe that their employer has violated the Cook County Living Wage Ordinance should contact the Cook County Commission on Human Rights about filing a complaint. This site is protected by reCAPTCHA and the Google Privacy Policy Chicago: On December 5, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). All Rights Reserved. For Cook County and Chicago, the minimum wage goes up, effective Friday, July 1. 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. 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. 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. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. Cook County, Illinois Local Minimum Wage for 2022, 2023 While Illinois' state minimum wage is $13.00 per hour, Cook County has set its own, higher minimum wage rate that applies to employees of all companies who work within Cook County. hbbd```b`` "7H$)[ "d2 "kl}8#}6D@{>m"E`s3UVH``q[ DAd8qX For example, someone over 18. The number of Cook County municipalities that have opted out of both ordinances has climbed to 107. 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