If a suburb opted-out, the Illinois minimum wage applies. Cook County Minimum Wage. 2022 CBS Broadcasting Inc. All Rights Reserved. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. Typically, workers should be paid the wage for the county where you work 50% or more of . 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 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. Sec. The mandate also requires employers to allow employees to carry over to the next year half, or up to 20 hours, of their unused, accrued sick leave. 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) 5 Although the county minimum wage exceeds the state rate, the state minimum cash wage (MCW . In 2019, Illinois Gov.. New minimum wages in effect July 1 for Chicago, Cook County. 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. 42-13) and rules (Sec. All rights reserved, Chicago Police Supt. On June 27, the Wilmette Village Board voted to opt out of the minimum wage and sick leave ordinances by votes of 6-1 and 5-2, respectively. 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 Government. On January 1, minimum wages went up in 20 states. Under federal law, employers must notify tipped employees that the employer is taking the tip credit, including any changes to their rate of pay. Each year the minimum wage increases according to a formula set by the Ordinance. In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. 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. The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices.. 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. Cook's Minimum Wage Ordinance does not apply to the city of Chicago, which has its own Ordinance. This site is protected by reCAPTCHA and the Google Privacy Policy 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. 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. 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. 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. starts here. 21 or more employees: Current Minimum Wage $15.40 / hour Effective 7/1/2022 Future Increase TBD In October 2016, the Cook County Board also passed an ordinance mandating that employers in Cook County provide each employee with one hour of sick leave for every 40 hours worked, up to 40 hours of paid sick leave per year, for employees who have worked at least 80 hours within a 120-day period. 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. . Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). 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. These range from $12.32 in Santa Fe, New Mexico, to $17.54 in SeaTac, Washington. 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. Effective July 1, 2022, the minimum wage for non-tipped workers increased to $13.35. 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. 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. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 42-16. 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 . 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. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. Teenagers (under the age of 18) must be paid the States minimum wage of $9.25. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. comeback 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. Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. 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). It is not to be used as a substitute for legal advice or counsel. Illinois Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. 2023 CBS Broadcasting Inc. All Rights Reserved. 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. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. 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. After 2020, the county minimum wage will be subject to increases based on the CPI. starts here. Cook County and Chicagos annual minimum wage increases go into effect on July 1, 2022. 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. 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. Employers with tipped employees have additional notice obligations. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. 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". Living Wage Effective January 1, 2023 until June 30, 2023, the living wage rate is $16.50 per hour. Pursuant to the MWO (Sec. . Eagan, MN 55121 Illinois A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. After 2020, the county minimum wage will be subject to increases based on the CPI. Research on minimum wage laws backs up their sentiments. Click here to review Cook County's minimum wage law. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. Coverage depends on the physical location (in Minneapolis) of the employee while performing work, regardless of the employee's age. 2022 to $7.20. The wage hike is part of an ordinance passed by Chicago Mayor Lori Lightfoot in 2019. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. Ordinance No. 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. The Ordinance also applies even those who may be working within the County to make deliveries or driving within the County limits. 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 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? The Commission investigates complaints to determine if a violation of the Ordinance has occurred. The number of Cook County municipalities that have opted out of both ordinances has climbed to 107. 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 . Pay depends on the type of job, size of company, age of the worker and more. Notice effective on July 1, 2022. Effective Jan. 1, the minimum wage for tipped workers increases to . In addition, Chicago employers must provide all employees a notice of the minimum wage increases by July 31, 2022. 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. dinance 3 FREQUENTLY ASKED QUESTIONS In Illinois, the minimum wage is currently set at $8.25. 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. 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. 2023 Living Wage Poster Bridgeview 11. 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. David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? 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. Chicagos current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with four to 20 employees. 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. 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. Bartlett 5. Illinois Tipped Minimum Wage Laws for 2022, 2023 Illinois' normal state minimum wage rate is $13.00 per hour. Chicago: On December 5, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). 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. The new wage will be $12 an hour. The state's $10 per hour minimum wage is set to rise by $1 on Jan. 1, 2022, until it hits $15 per hour in 2025. Illinois State Mandatory Updates. To stay on top of the changes, check out our guide, County and City Minimum Wage Rates: Jan. 1, 2023. 336 0 obj <>/Filter/FlateDecode/ID[<40825334C6034852B75058E972CAD54A><290230037E060044AA1834D34DF6F10C>]/Index[302 72]/Info 301 0 R/Length 151/Prev 207881/Root 303 0 R/Size 374/Type/XRef/W[1 3 1]>>stream Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; . Among the municipalities that have opted out are some of the areas major entertainment, restaurant and retail hubs. The notice is effective Jan. 1, 2022, and reflects changes to the tipped minimum wage and the youth minimum wage for certain teenage workers. Inflation has rapidly outpaced wage growth, cutting the average Illinoisans pay by $2,200. 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. Concerns for the effect on local businesses have played a significant part in many opt-out discussions. The updates can be viewed in EPI's interactive 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. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. The county's hourly minimum wage will remain unchanged at $13.00. For Cook County and Chicago, the minimum wage goes up, effective Friday, July 1. State of Illinois Minimum Wage and Tipped Wage, Cook County Tipped Wage Increase as of January 1, 2022. 2/2/2023 Job Shadow Day & more. 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. The Washington Post summarized the study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase. 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. !function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r

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