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. Ordinance No. All Rights Reserved. Chicago Office | Illinois Policy Effective July 1, 2023, the District's Minimum Wage and Living Wage will increase to $17.00. Wages at smaller businesses will increase to $13.50. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy . The new wage will be $12 an hour. Gov. 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. Massachusetts laws 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. The poverty rate reflects a person's gross annual income. starts here. 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. Cook County minimum wage will not increase July 1, 2021, due to unemployment numbers. 5 Although the county minimum wage exceeds the state rate, the state minimum cash wage (MCW . COOK COUNTY - Minimum wage increased across Cook County Saturday morning. 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. Effective January 1, 2023, the minimum wage for tipped workers increases to $7.80, in alignment with the Illinois State minimum wage. Employers must inform employees of these increases in writing. State of Illinois Minimum Wage and Tipped Wage, Cook County Tipped Wage Increase as of January 1, 2022. Alsip 2. Published July 9, 2022 . 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. Bellwood 7. 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. This year the . The Wages set out in Sections 42-13 and 42-14 are subject to the overtime compensation provisions in the Cook County Minimum Wage Law, with the exception that the definitions of "Employer" and "Employee" in this chapter shall apply. 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. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. Published January 1, 2022. c`f^ g`f@W00ke` E 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. 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. In addition, Chicago employers must provide all employees a notice of the minimum wage increases by July 31, 2022. As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. The MWO sets the lowest amount an employer must legally pay their employees. Strategic Plan(English Version) Donar/Donate 42-13) and rules (Sec. The county's hourly minimum wage will remain unchanged at $13.00. endstream endobj startxref 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) 1305 Corporate Center Drive FOX 32 Chicago. Effective Jan. 1, the minimum wage for tipped workers increases to . Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; . In Cook County the . With the increases in the Chicago and Cook County minimum wage, the minimum wage paid to tipped employees will also increase. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). 42-13) and rules (Sec. 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. And minimum wage hikes canreduce job opportunitiesin minority communities. The minimum wage in Cook County on July 1 will increase for both non-tipped workers and tipped workers, a press release from the county states. 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. 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. The increases in suburban Cook County will not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. Nevada. The minimum wage for non-tipped workers remains $13.35. The minimum wage in Illinois is set to increase another dollar on Saturday, Jan. 1, 2022. State minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). comeback Because the unemployment rate in Cook County was above 8.5 percent over the previous year, the standard rate will not increase on July 1, 2021, as planned. David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? 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. 2/2/2023 Job Shadow Day & more. Arlington Heights 3. Inflation has rapidly outpaced wage growth, cutting the average Illinoisans pay by $2,200. All Rights Reserved. story 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. 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. Bartlett 5. Cook Countys minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. English-Language Posters. 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. Teenagers (under the age of 18) are not entitled to the minimum wage. 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. 1/26 . As of July 1, 2020, the Chicago minimum wage is $13.50 per hour for employers that have four to 20 workers and $14 for employers that . 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. J.B. Pritzker signed legislation in 2019 putting . Unlike last year, where the unemployment rate was greater than 8.5%, the unemployment rate is now under 8.5%, which means that the minimum wage for . On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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. In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. Illinois Smaller employers (100 or fewer employees) continue paying at least $13.50 until July. 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? The minimum wage for tipped workers increased to $7.40. All rights reserved, Chicago Police Supt. The MWO sets the lowest amount an employer must legally pay their employees. 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. By comparison, employment decreased 1.2 percent for Hispanic males, and dropped 2.5 percent for white males in the same age and education categories. 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. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. hb```a``Abl@YsNu!e!B[*.l^\l5HmheY2E Q,PM@Z" Cook County to Raise Minimum Wage to $13.35 Starting July 1. 6-105-020 Minimum hourly wage. 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. In addition to the minimum wage increases July 1, Chicago businesses in. These range from $12.32 in Santa Fe, New Mexico, to $17.54 in SeaTac, Washington. New study points to loss of jobs and work hours due to Seattles minimum wage increases, A June 2017 University of Washington report on the effects of Seattles minimum wage hike found a 9 percent decrease in hours worked by lower-wage workers and a decline in total payroll for such jobs during the second phase of the wage hike in 2016, when rates climbed to as much as $13 an hour from as much as $11 an hour. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days' sick leave While the federal minimum wage is $7.25 per hour, and Illinois' statewide minimum wage is. But if 8.5 percent countywide unemployment is high enough to halt increases in the minimum wage under the ordinance, shouldnt the states 12.7 percent black unemployment rate and the fact that 34.3 percent of Cook County 20-to-24-year-old black residents are out of both school and work give lawmakers pause? Y*%+-KpxYp$V b Eagan, MN 55121 Bridgeview 11. This guide is intended for market awareness only. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 First published on June 1, 2022 / 6:19 PM. June 1, 2022 / 6:19 PM hbbd```b`` "7H$)[ "d2 "kl}8#}6D@{>m"E`s3UVH``q[ DAd8qX 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. 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. For example, someone over 18. Any time worked in 2022 must reflect the new $12 an hour minimum wage. 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. 2021 Minimum Wage. %PDF-1.6 % 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. 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . And minimum wage hikes canreduce job opportunitiesin minority communities. 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. Schaumburgs Woodfield Mall is a shopping destination with dozens of stores and eateries. Again, this increase may not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. 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. 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 rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. July 1, 2022 Minimum Wage. The Seattle Times noted, For an average low-wage worker in Seattle, that translates into a loss of about $125 per month per job., This newstudy echoed findings in a 2016 University of Washington report on the effects of the first phase of Seattles increase in its minimum wage. Illinois 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. Effective July 1, 2022. The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry. The MWO sets the lowest amount an employer must legally pay their employees. 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. All Rights Reserved. Location Address 69 W. Washington Street, Suite 1130, Chicago, IL 60602 Location Email human.rights@cookcountyil.gov Location Phone 312-603-1100 Location Fax 312-603-9988 Location Hours Sunday: Closed Monday: 8:30 am-4:30 pm Tuesday: 8:30 am-4:30 pm Wednesday: 8:30 am-4:30 pm Thursday: 8:30 am-4:30 pm Friday: 8:30 am-4:30 pm Saturday: Closed Decisions of the Commission on Human Rights, Office of the Independent Inspector General, CARES Act Information for Local Governments, Freedom of Information Act for Offices Under the President, Living Wage Ordinance Protocol (122.31 KB). and Terms of Service apply. Starting July 1, minimum wage in Chicago will increase by $1 to $14 per hour for employers with more than 21 workers. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. After 2020, the county minimum wage will be subject to increases based on the CPI. 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. 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. The unemployment rate in Cook County for the previous year was equal to or greater than 8.5%. More than 50 municipalities have opted out of Cook Countys new mandates. story July 1, those rates will rise to $13.35 for non-tipped workers and $7.40 for tipped workers. Cook County. Illinois Cook County Government. *%: M'pe`l;j Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. 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. 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.. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices.. Unlike last year, where the unemployment rate was greater than 8.5%, the. The 1-Year Compliance Plan offers required Federal and State posters plus 12 months of mandatory updates for free! t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy 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. 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. Pay depends on the type of job, size of company, age of the worker and more. In 2019, Illinois Gov.. 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. Minimum wages for Chicago and Cook County are increasing July 1. Spanish-Language Posters. 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. 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. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Tipped employees will increase from $7.20 an hour to $7.40 an hour. The ordinance phases in the increase: By July 1, 2017, the minimum wage will rise to $10, and the level goes up by $1 each year after that until it reaches $13 in July 2020. They will be based on percentage increases determined by the . 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. June 1, 2022 / 6:19 PM / CBS Chicago 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. 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. Interestingly, Chicagos and Cook Countys 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. Latest News more. 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". Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Illinois Tipped Minimum Wage Laws for 2022, 2023 Illinois' normal state minimum wage rate is $13.00 per hour. 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. Rosemont, for example, is home to Allstate Arena, Rivers Casino is located in Des Plaines, and Arlington Heights has the Arlington International Racecourse. Berkeley 9. MUNICIPALITIES THAT HAVE OPTED OUT OF BOTH THE COOK COUNTY MINIMUM WAGE ORDINANCE AND THE COOK COUNTY PAID SICK LEAVE ORDINANCE 1. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. 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. 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. (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 . 12/2022 - Illinois Minimum Wage - Revised with new minimum wage rate of $13.00 per hour effective January 1, 2023 and new added information on employees who work more than 12 hrs or longer will have an additional 20 minutes meal break and reasonable bathroom breaks. After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. 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. 107 localities opt out of both Cook County ordinances. Chicago passed a minimum wage ordinance in 2014. Blue Island 10. 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. 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. Chicago passed a similar sick leave ordinance in 2016. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. According to the county, these employees are covered under the Minimum Wage Ordinance: Teenagers under the age of 18 must be paid Illinois' current minimum wage, which is $9.25. Living wage is $ 13.00 workers increases to 107 localities opt out Cook... 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