Illinois employers need to be prepared for increases to the minimum wage paid to hourly employees beginning in January 2020. The current minimum wage for non-tipped employees in the state of Illinois stands at $8.25 per hour. Those rates are going up! This is in response to legislation passed last year to address low wages in Illinois and the drive to reach $15.00 per hour minimum wage. Below is a chart which employers should bear in mind as time goes by:
Date: Minimum Wage
Effective 1-1-2020 $9.25
Effective 7-1-2020 $10.00
Effective 1-1-2021 $11.00
Effective 1-1-2022 $12.00
Effective 1-1-2023 $13.00
Effective 1-1-2024 $14.00
Effective 1-1-2025 $15.00
Notably, the legislation also increased the minimum wage for non-tipped workers under 18 years of age, who historically had a slightly lower rate requirement in Illinois. Beginning January 1, 2020, a worker who is under 18 must receive the standard minimum wage if he or she performs duties for more than 650 hours during any calendar year. For employees under 18 with hours below 650 in a calendar year, the legislation sets specific rates that will also increase gradually over the next six years.
Under the new law, there is some relief for smaller employers. The new law does include a tax credit for small employers (50 or fewer full time employees) that will be able to claim a tax credit equal to 25 percent of the increased wages paid between January 1, 2020, and December 31, 2020, for those employees working 90 or more consecutive days.
In July of 2020, the minimum wage for non-tipped employees in the City of Chicago will also change. Currently the rate is $13.00 per hour. The new rate will be calculated in accordance with the Consumer Price Index (“CPI”). If the CPI rises above 2.5%, then the increase shall be capped at 2.5%. Similarly, employers in Cook County municipalities that did not opt out of the minimum wage ordinance must pay hourly non-tipped employees at least $12.00 per hour, and will face the same CPI increases in 2020.
With over 34 years’ experience in advising employers and employees on workplace issues, let Boznos Law work with you to ensure you are ready to meet the challenges posed by the changes to the employment laws. Call Bill Boznos today at (630) 375-1958 or contact us at www.boznoslawoffice.com/contact-us through our website.