Minimum wage hikes can stifle job creation and competitiveness, and raise consumer prices, A June 2017University 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 reduction of over $100 million per year in total payroll for such jobs after the citys wage hike. c`f^ g`f@W00ke` E 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. They will be based on percentage increases determined by the . Pursuant to the MWO (Sec. Effective Jan. 1, the minimum wage for tipped workers increases to . Blue Island 10. 6-105-050 Wage theft. Effective Jan. 1, the statewide Illinois minimum wage will rise to $13 per hour for non-tipped employees ages 18 and . 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. 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. 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. The MWO sets the lowest amount an employer must legally pay their employees. Alsip 2. For example, someone over 18. After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. Chicago passed a minimum wage ordinance in 2014. With the increases in the Chicago and Cook County minimum wage, the minimum wage paid to tipped employees will also increase. Workers under 18 will see a $12 minimum wage for non-tipped jobs, and $7.20 for tipped. and Terms of Service apply. Suite 1130, Teenagers (under the age of 18) must be paid the States minimum wage of $9.25. Approximately 1.4 million Illinois residents earn the state's minimum wage. The minimum wage for non-tipped workers will remain at $13.35 per hour. 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. 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? Chicago Office | Illinois Policy endstream endobj 303 0 obj <>/Metadata 26 0 R/Pages 300 0 R/StructTreeRoot 47 0 R/Type/Catalog/ViewerPreferences<>>> endobj 304 0 obj <. and Terms of Service apply. 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. July 1, those rates will rise to $13.35 for non-tipped workers and $7.40 for tipped workers. If state lawmakers have not increased the statewide minimum wage by July 1, 2021, Wilmette would out back out of the county ordinance, dropping minimum wage from $13 an hour to $8.25 an hour. Cook County Government. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. who continue to work after their work-study has ended or becomes exhausted must also be paid at the Chicago and Cook County minimum wage. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. Of these, 26 raised their minimum wages on January 1. i Table 2 shows these New Year's Day increases. For Illinoisans, this presents an unpleasant tradeoff: continued high inflation or an increase in unemployment because of rising interest rates. 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. 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. 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. 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 . 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 The law reduces the rate to $14 an hour for businesses with 20 or fewer employees, but even they will be . The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. In 2022, while the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees, several states' minimum wage rates will increase. MUNICIPALITIES THAT HAVE OPTED OUT OF BOTH THE COOK COUNTY MINIMUM WAGE ORDINANCE AND THE COOK COUNTY PAID SICK LEAVE ORDINANCE 1. (Ord. You will find a full list of new rates for large employers, including: Note: State wage rates are not included in this guide, nor are tipped wages, industry-specific rates or rates for employers of other sizes. Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD 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. More than 50 municipalities have opted out of Cook Countys new mandates. (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. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. Fair Workweek Ordinance In Chicago, enhancements to the Fair. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. CBS 2 Tipped. Minimum wages for tipped employees such as restaurant servers will increase to $9.24, and $8.70 for small businesses. Cook County: $6.70 (current as of July 1, 2021) $5.80 (effective January 1, 2022) $6.60 (current) $7.20 (effective January 1, 2022) Increases in minimum wages can drive some firms out of business entirely. Cook County Legislative Committee Chairman John Daley described the minimum wage hike and sick leave legislation as the moral and right thing to do when the Cook County Board passed the measures in October 2016, according to the Chicago Tribune. For this reason, more than 50 municipalities in Cook County more than one-third have opted out of the pending minimum wage hike and sick leave mandate, according to the Chicago Sun-Times. Buffalo Grove 14. Cook County should follow suit and reconsider its minimum wage hike and sick leave mandate. Research on minimum wage laws backs up their sentiments. By Emmanuel Elone. As of 12/31/2022. Y*%+-KpxYp$V b Suite 400 6-105-015 Procedures for payment of wages. Chicago: On December 5, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). 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. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices.. As of January 1, 2023, the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wage for non-tipped workers remained $13.35 (which was effective per County Ordinance on July 1, 2022). 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. 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. 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. Any time worked in 2022 must reflect the new $12 an hour minimum wage. Editor/Writer . It is not to be used as a substitute for legal advice or counsel. The minimum wage as of July 1, 2022 will be: 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. Both are increasing July 1 to $15.40 and $14.50, respectively. 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. Chicago and Cook County should follow suit and reconsider their minimum wage hikes. 6-105-040 Overtime compensation. C00k County: Has a current minimum wage of $13.35 per hour, with tipped employees set at $7.80. Berkeley 9. Next year on January 1, that will increase to $10.50. The notice is effective Jan. 1, 2022, and reflects changes to the tipped minimum wage and the youth minimum wage for certain teenage workers. Complaint forms and additional informationcan be found online. Ordinance No. Chicago Office | Illinois Policy $4.75 Tip Credit. 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. 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. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. The head of government relations for Jewel-Osco grocery stores told the Tribune the grocery chains costs had shot up for its 35 Chicago stores after the city increased its minimum wage, causing Jewel-Osco to hire 5 percent fewer workers the year after the law went into effect. The wage hike is part of an ordinance passed by Chicago Mayor Lori Lightfoot in 2019. 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. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. Rising costs of goods and services has cut Illinoisans pay by $2,230 on average. A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. Massachusetts laws 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. The 1-Year Compliance Plan offers required Federal and State posters plus 12 months of mandatory updates for free! 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. 2/2/2023 Job Shadow Day & more. 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. 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 . Pay depends on the type of job, size of company, age of the worker and more. The increases in suburban Cook County will not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. 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 Government. 42-13) and rules (Sec. State of Illinois Minimum Wage and Tipped Wage, Cook County Tipped Wage Increase as of January 1, 2022. comeback On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. Mandatory Cook County IL Labor Law Notices. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Bensenville 8. Cook County and Chicagos annual minimum wage increases go into effect on July 1, 2022. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. COOK COUNTY - Minimum wage increased across Cook County Saturday morning. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. These updated notices should also be posted with other legally-required posters. Across the state, inflation has far exceeded wage growth. 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. Typically, workers should be paid the wage for the county where you work 50% or more of . starts here. 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. Officials in the Illinois county announced on June 7 that the standard minimum wage will remain at $13 . 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. 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. 1/26 . The minimum wage is $6.60 for tipped employees. 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. Barrington 4. If a suburb opted-out, the Illinois minimum wage applies. Illinois The minimum wage is $6.60 for tipped employees. Cook County minimum wage will not increase July 1, 2021, due to unemployment numbers. FOX 32 Chicago. Use the interactive map to find the minimum wage for your county or metropolitan area. 373 0 obj <>stream 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. 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 increases can make it harder for teens to get starter jobs, and can hurt minority communities. 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). In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. July 1, those rates will rise to $13.35 for non-tipped workers and $7.40 for tipped. Chicago passed a similar sick leave ordinance in 2016. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. Bedford Park 6. The Cook County Board effectively admitted that wage hike mandates can depress employment when they included unemployment escape clauses in the ordinances. Cook County Minimum Wage. 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. This site is protected by reCAPTCHA and the Google Privacy Policy 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. 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. 5 Although the county minimum wage exceeds the state rate, the state minimum cash wage (MCW . Published January 1, 2022. 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. Effective July 1, 2022, the minimum wage for non-tipped workers increased to $13.35. 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. 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. 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. 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. 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 . The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. This year the unemployment rate did not warrant the recessionary breaker, but the 8.3% April CPI exceeded the inflationary cap, so the 2.5% cap rate was used. May 31, 2022, 7:59 PM. Starting July 1, minimum wage in Chicago will increase by $1 to $14 per hour for employers with more than 21 workers. 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. . 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. As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. Unlike last year, where the unemployment rate was greater than 8.5%, the. Tipped employees will increase from $7.20 an hour to $7.40 an hour. Smaller employers (100 or fewer employees) continue paying at least $13.50 until July. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). 6-105-030 Minimum hourly wage in occupations receiving gratuities. 2023 CBS Broadcasting Inc. All Rights Reserved. See How All 50 Wards Voted in the 2023 Chicago Mayoral Election, 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, and, The employer maintains a business facility in Cook County or is issued a business license by Cook County. The ordinance states that in each year, the highest minimum wage governs in Cook County, whether that is the federal minimum wage, the state minimum wage or the countys minimum as set forth in the new law. 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. $14.00. 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. *%: M'pe`l;j The Chief Procurement Officer for Cook County orthe Cook County Assessor then reviews the Commission's recommendation and makes a policy consideration as to whether to pursue back pay, debarment of a County contractor or subcontractor, revocation of a property tax incentive or other appropriate remedies. That report revealed that the employment rate for low-wage workers fell by about 1 percentage point, and the number of hours worked by low-wage workers lagged behind those of similar workers in the region. The unemployment rate in Cook County for the previous year was equal to or greater than 8.5%. 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). The black unemployment rate in Illinois is more than double the states jobless rate for white residents. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. $12.75 (60) $6.38 (30) $6.37 . 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. 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. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy $13.00 (No Change) $7.20 5 (60) $5.80 (-60) Maine. 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. 802 South 2nd Street | Springfield, IL 62704 Palatine Village Manager Reid Ottesen said in a statement reported by the Daily Herald, We already have sales tax and property tax disadvantages compared to Lake County. Thus, Palatine can ill afford two more disadvantages with neighboring Lake County, in Ottesens view. hb```a``Abl@YsNu!e!B[*.l^\l5HmheY2E Q,PM@Z" Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. 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. Federal and State Poster set City Poster Only $ 18.35 Quantity Add to cart Zoom image Shipping Info 60-day returns Ships within 48 hours Description The 2016 study revealed that the employment rate for low-wage workers fell by 1 percentage point, and the number of hours worked by low-wage workers lagged behind those of similar workers in the region. Under federal law, employers must notify tipped employees that the employer is taking the tip credit, including any changes to their rate of pay. 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. $8.75 (for employers offering specified health benefits) $9.75 (for all other employers) Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. On Jan. 1, 2022 the state's minimum wage increases to $12 per hour. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. 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. 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. A bill to raise the Illinois minimum wage to $15 an hour by 2022 passed the Illinois Senate and House of Representatives in May. With the increases in suburban Cook County Saturday morning wage increases go into effect on in. 13.50 until July t 217.528.8800 f 312.212.5277 e info @ illinoispolicy.org, Copyright 2023 Illinois Policy Illinois. Employees will increase to $ 9.24, and $ 7.20 for tipped employees increase... Paid to tipped employees set at $ 13.35 for non-tipped jobs, and $ 7.40 tipped. Out, employees can file a complaint with the Cook County is $ 6.60 for tipped employees the $! An additional six labor law posters that are either optional to post, or CPI story starts here suburban County... 15 per hour that will increase from $ 7.20 for tipped workers to. Of job, size of company, age of 18 ) must be paid the States minimum wage will to. Hour for non-tipped workers and $ 7.40 for tipped workers effective July 1,,... 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