Overview of Illinois's Minimum Wage Requirements
As of January 1, 2024, the minimum wage in the state of Illinois is $14.00 per hour. This rate is part of a series of wage increases that were established when Governor JB Pritzker signed legislation in 2019. The plan is to gradually increase the minimum wage to $15.00 per hour by 2025. For tipped employees, they may be paid 60% of the hourly minimum wage, which is $8.40. However, these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.
The minimum wage in Illinois has been on a steady upward trend over the past several years. For instance, it was $12.00 per hour in 2022 and increased to $13.00 per hour in 2023. The trend is set to continue, with the minimum wage scheduled to increase to $15.00 per hour on January 1, 2025.
Understanding Local Minimum Wage Variations
In Cook County, Illinois, the minimum wage is set at $14.00 per hour for non-tipped workers and $8.40 per hour for tipped workers. This rate is determined by the highest rate among the Federal minimum wage, Illinois State minimum wage, or the County’s calculation using the Consumer Price Index (CPI). However, the County’s minimum wage calculation is not applicable when the unemployment rate in Cook County is 8.5% or greater.
In contrast, the minimum wage in Chicago, Illinois is $15.80 per hour for employers with 21 or more workers, and $15.00 per hour for employers with 4 to 20 workers. For domestic workers, the minimum wage is $15.40 per hour, regardless of the number of employees. The minimum wage is updated every July 1.
Minimum Wage Eligibility and Exemptions
In the state of Illinois, workers who are 18 years of age and older are eligible for a minimum wage of $14.00 per hour. However, there are certain exemptions and variations to this rule. For instance, employers where gratuities are paid to employees may pay 60% of the minimum wage, which is $8.40. Additionally, employers can apply for licenses to pay sub-minimum rates to learners and certain workers with physical and mental limitations.
Youths under 18 years old working less than 650 hours per calendar year are eligible for a minimum wage of $12.00. However, once the employee works more than 650 hours with an employer in a calendar year, they must be paid $14.00 per hour. Certain employees are exempt from the minimum wage law, including outside salesmen, members of a religious corporation or organization, and employees of certain agricultural or aquacultural operations, among others.
Minimum Wage Considerations and Compliance Tips
In Illinois, food business employers must adhere to several key minimum wage legal and compliance considerations. As of January 1, 2024, the minimum wage is set at $14.00 per hour for workers 18 years and older. However, during the first 90 consecutive calendar days after an employee is initially employed, an employer may pay a wage that is not more than 50¢ less than the standard wage. This exception does not apply to day or temporary laborers.
For employees who receive tips, employers may pay them 60% of the minimum wage, which equates to $8.40 per hour. Employers can also apply for licenses to pay sub-minimum rates to learners and certain workers with physical and mental limitations. Overtime must be paid after 40 hours of work per week at time and one-half the regular rate. However, certain employees, such as executive, administrative or professional employees as defined by the Fair Labor Standards Act, are exempt from overtime pay.
FAQs
- What is the current minimum wage in Illinois? As of January 1, 2024, the minimum wage in Illinois is $14.00 per hour.
- What is the minimum wage for tipped employees in Illinois? For tipped employees, they may be paid 60% of the hourly minimum wage, which is $8.40.
- What is the minimum wage for youths under 18 in Illinois? Youths under 18 who work less than 650 hours per calendar year are eligible for a minimum wage of $12.00.
- Are there any exemptions to the minimum wage law in Illinois? Yes, certain employees are exempt from the minimum wage law, including outside salesmen, members of a religious corporation or organization, and employees of certain agricultural or aquacultural operations, among others.
Information Source Links
- Illinois State Minimum Wage Chart
- Illinois Minimum Wage Rates History
- Illinois Minimum Wage Law
- Frequently Asked Questions
- Administrative Code, 56 Ill. Adm. Code 210
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