Minimum wages for tipped employees such as restaurant servers will increase to $9.24, and $8.70 for small businesses. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. Cook Countys minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. 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. . The employer maintains a business facility in Cook County or is issued a business license by Cook County. More than 50 of Cook Countys 132 municipalities have used their home rule authority to opt out of the countys wage hike and sick leave mandate, and the number of municipalities considering opting out continues to climb, according to WBEZ. Effective July 1, 2023, the District's Minimum Wage and Living Wage will increase to $17.00. 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. Arlington Heights 3. 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. 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. 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. The minimum wage for non-tipped workers remains $13.35. Cook County municipalities opting out of minimum wage, sick leave ordinances (107): Alsip, Arlington Heights, Barrington, Bartlett, Bellwood, Bensenville, Berkeley, Blue Island, Bridgeview, Broadview, Brookfield, Buffalo Grove, Burbank, Burnham, Burr Ridge, Calumet City, Calumet Park, Chicago Heights, Chicago Ridge, Country Club Hills, Crestwood, Des Plaines, East Dundee, East Hazel Crest, Elgin, Elk Grove Village, Elmwood Park, Evergreen Park, Flossmoor, Ford Heights, Forest Park, Forest View, Harvey, Hazel Crest, Glenview, Glenwood, Golf, Hanover Park, Harwood Heights, Hickory Hills, Hillside, Hinsdale, Hodgkins, Hoffman Estates, Homewood, Hometown, Indian Head Park, Inverness, Justice, La Grange, La Grange Park, Lansing, Lemont, Lincolnwood, Lynwood, Lyons, Markham, Matteson, Maywood, Melrose Park, Merrionette Park, Midlothian, Morton Grove, Mount Prospect, Niles, Norridge, North Riverside, Northbrook, Northlake, Oak Forest, Oak Lawn, Orland Hills, Orland Park, Palatine, Palos Heights, Palos Park, Park Forest, Park Ridge, Posen, Prospect Heights, Richton Park, River Forest, River Grove, Riverdale, Riverside, Rolling Meadows, Roselle, Rosemont, Sauk Village, Schaumburg, Schiller Park, South Barrington, South Chicago Heights, South Holland, Steger, Stickney, Stone Park, Streamwood, Summit, Thornton, Tinley Park, Westchester, Western Springs, Wheeling, Willow Springs, Wilmette, Worth, Cook County municipalities opting out of minimum wage ordinance, complying with sick leave ordinance (3): Cicero, Dixmoor, Franklin Park, Cook County municipalities opting out of sick leave ordinance, complying with minimum wage ordinance (1): Bedford Park, Cook County municipalities complying with the minimum wage and sick leave ordinances (13): Barrington Hills, Berwyn, Countryside, Deerfield, Evanston, Glencoe, Kenilworth, McCook, Northfield, Oak Park, Palos Hills, Skokie, Winnetka, Awaiting response (4): Dolton, Olympia Fields, Phoenix, Robbins, Chicago Office | Illinois Policy c`f^ g`f@W00ke` E In addition to the minimum wage increases July 1, Chicago businesses in health care, food service, retail and warehouses must release work schedules 14 days in advance instead of 10 because of a change in city rules. Broadview 12. Fair Workweek Ordinance In Chicago, enhancements to the Fair. And minimum wage hikes canreduce job opportunitiesin minority communities. 6-105-015 Procedures for payment of wages. $14.00. The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. Chicagos current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with four to 20 employees. 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. We have converted it to an hourly wage for the sake of comparison. All Rights Reserved. 2023 Living Wage Poster 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. Illinois employers may not pay you under $13.00 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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. In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. Cook County to Raise Minimum Wage to $13.35 Starting July 1. Copyright 2023 NBCUniversal Media, LLC. 42-13) and rules (Sec. Effective July 1, 2022. 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. Bensenville 8. 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. 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. After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. State. The state minimum wage is currently $12 an hour. 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. But if 8.5 percent citywide or countywide unemployment is high enough to halt increases in the minimum wage under the ordinances, 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? Ordinance No. On Jan. 1, 2022 the state's minimum wage increases to $12 per hour. 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". 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. Cook Countys minimum wage notice is here. 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. Wages at smaller businesses will increase to $13.50. 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. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. $13.00 (No Change) $7.20 5 (60) $5.80 (-60) Maine. 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. 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. Alsip 2. 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. Burnham Subscribe to our blog for the latest employment law news. They will be based on percentage increases determined by the . As a reminder, the state of Illinois' minimum wage and tipped wage rates are set to increase on January 1, 2022. . The minimum wage for small businesses continues to increase towards $15 per hour by 2023. If a suburb opted-out, the Illinois minimum wage applies. 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. The minimum wage for tipped workers increased to $7.40. 1/26 . -Cook County. 802 South 2nd Street | Springfield, IL 62704 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 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. $4.75 Tip Credit. 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. Smaller employers (100 or fewer employees) continue paying at least $13.50 until July. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. Suite 400 Ordinance No. comeback 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Living Wage Effective January 1, 2023 until June 30, 2023, the living wage rate is $16.50 per hour. 6-105-050 Wage theft. Latest News more. 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. 2023 CBS Broadcasting Inc. All Rights Reserved. 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. The minimum wage as of July 1, 2022 will be: 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) 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. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices.. The updates can be viewed in EPI's interactive 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. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. *%: M'pe`l;j 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. Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. A campaign to raise the minimum wage has captured headlines throughout Illinois in May and June. All rights reserved, Chicago Police Supt. 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. 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. 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. The law reduces the rate to $14 an hour for businesses with 20 or fewer employees, but even they will be . Pursuant to the MWO (Sec. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 The poverty rate reflects a person's gross annual income. The minimum wage for tipped employees in suburban Cook County will increase to $7.40 per hour. 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. 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. Chicago Office | Illinois Policy Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. 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. Chicago Office | Illinois Policy 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. 42-13) and rules (Sec. This site is protected by reCAPTCHA and the Google Privacy Policy Effective July 1, 2022, the minimum wage for non-tipped workers increased to $13.35. Published July 9, 2022 . 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. $12.75 (60) $6.38 (30) $6.37 . Blue Island 10. 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). 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. 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. What is the minimum wage in Cook County 2022? Increases in minimum wages can drive some firms out of business entirely. Table 2 Cook County. 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. 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 . Cook County Government. This site is protected by reCAPTCHA and the Google Privacy Policy Increases in minimum wages can drive some firms out of business entirely. 2/2/2023 Job Shadow Day & more. 6-105-030 Minimum hourly wage in occupations receiving gratuities. Instead, they must be paid the States minimum wage for workers under the age of 18. 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 hb```a``Abl@YsNu!e!B[*.l^\l5HmheY2E Q,PM@Z" New minimum wages in effect July 1 for Chicago, Cook County. Rising costs of goods and services has cut Illinoisans pay by $2,230 on average. 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. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. For July 1, 2022 through June 30, 2023, those rates are: $14.75 per hour - Portland metro. Chicago passed a similar sick leave ordinance in 2016. Illinois Suite 1130, 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. Teenagers (under the age of 18) must be paid the States minimum wage of $9.25. 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). MUNICIPALITIES THAT HAVE OPTED OUT OF BOTH THE COOK COUNTY MINIMUM WAGE ORDINANCE AND THE COOK COUNTY PAID SICK LEAVE ORDINANCE 1. Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 This year the unemployment rate did not warrant the recessionary breaker, but the 8.3% April CPI exceeded the inflationary cap, so the 2.5% cap rate was used. Y*%+-KpxYp$V b 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. 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. It is not to be used as a substitute for legal advice or counsel. The notice is effective Jan. 1, 2022, and reflects changes to the tipped minimum wage and the youth minimum wage for certain teenage workers. . The Ordinance also applies even those who may be working within the County to make deliveries or driving within the County limits. The black unemployment rate in Illinois is more than double the states jobless rate for white residents. 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. 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. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. May 31, 2022, 7:59 PM. Sec. 42-13) and rules (Sec. In 2022, while the federal minimum wage will remain at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees, several states' minimum wage rates will increase. Those who did work had fewer hours than they would have without the wage hike., A study released in June by researchers from the University of California, Berkeley, however, found the hike in Seattles minimum wage had no effect on employment in Seattles food services industry. hbbd```b`` "7H$)[ "d2 "kl}8#}6D@{>m"E`s3UVH``q[ DAd8qX 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. For Cook County and Chicago, the minimum wage goes up, effective Friday, July 1. Within the urban growth boundary, including parts of Clackamas, Multnomah, . 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. Use the interactive map to find the minimum wage for your county or metropolitan area. Burbank 15. The increases in suburban Cook County will not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. 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. These updated notices should also be posted with other legally-required posters. 42-13) and rules (Sec. Click here to review Cook County's minimum wage law. 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. Last updated June 7, 2022. CHICAGO - The minimum wage in Illinois is set to increase at the start of 2023. 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. The Commission investigates complaints to determine if a violation of the Ordinance has occurred. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. English-Language Posters. Cook's Minimum Wage Ordinance does not apply to the city of Chicago, which has its own Ordinance. 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. This year the . The wage hike is part of an ordinance passed by Chicago Mayor Lori Lightfoot in 2019. After 2020, the county minimum wage will be subject to increases based on the CPI. Typically, workers should be paid the wage for the county where you work 50% or more of . Bartlett 5. The 1-Year Compliance Plan offers required Federal and State posters plus 12 months of mandatory updates for free! Officials in the Illinois county announced on June 7 that the standard minimum wage will remain at $13 . This site is protected by reCAPTCHA and the Google Privacy Policy Optional Illinois Labor Law Posters 6 PDFS. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. . 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