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. Table 2 6-105-010 Definitions. 6-105-040 Overtime compensation. In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . 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. $13.00. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). More than 50 municipalities have opted out of Cook Countys new mandates. 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. With economists forecasting prolonged inflation, its likely the Federal Reserve will keep hiking interest rates. 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. This year the . Research on minimum wage laws backs up their sentiments. 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. All Rights Reserved. However, the applicable tipped minimum wage in Cook County will be the state's tipped minimum wage of $7.20 per hour, the county said . The Chicago City Council and Cook County Board effectively admitted that wage hike mandates can depress employment when they included unemployment escape clauses in the ordinances. Wages at smaller businesses will increase to $13.50. As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. 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. It is not surprising that so many municipalities are rejecting ordinances that can make it even harder for businesses to stay afloat, and to provide job opportunities for residents who need them. *2023 Poster is shipping now. Bellwood 7. 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. A bill to raise the Illinois minimum wage to $15 an hour by 2022 passed the Illinois Senate and House of Representatives in May. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Employers should provide new tip credit notices every time a tipped employees wage rate changes. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. Employers must inform employees of these increases in writing. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. endstream endobj 303 0 obj <>/Metadata 26 0 R/Pages 300 0 R/StructTreeRoot 47 0 R/Type/Catalog/ViewerPreferences<>>> endobj 304 0 obj <. Blue Island 10. and Terms of Service apply. The ordinance states that in each year, the highest minimum wage governs in Cook County, whether that is the federal minimum wage, the state minimum wage or the countys minimum as set forth in the new law. What is the minimum wage in Cook County 2022? The MWO sets the lowest amount an employer must legally pay their employees. Concerns for the effect on local businesses have played a significant part in many opt-out discussions. (The rates apply differently depending on factors such as the size of the employer.) Unlike last year, where the unemployment rate was greater than 8.5%, the. Y*%+-KpxYp$V b $4.75 Tip Credit. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. Chicago, IL 60602. 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. The employer maintains a business facility in Cook County or is issued a business license by Cook County. 16-5768, 42-11, 10-26-2016.) 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. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy comeback 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . 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. David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? Published January 1, 2022. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. 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. Please enter valid email address to continue. Chicago and Cook County should follow suit and reconsider their minimum wage hikes. 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. Editor/Writer . On Jan. 1, 2022 the state's minimum wage increases to $12 per hour. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 English-Language Posters. CHICAGO - The minimum wage in Illinois is set to increase at the start of 2023. State. 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. 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. 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. 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. *%: M'pe`l;j Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. 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. 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). Employers can contact the Cook County Bureau of Finance for advice regarding compliance with the Cook County Living Wage Ordinance. 1-888-273-3274. As of 12/31/2022. 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 Seattle Times noted, For an average low-wage worker in Seattle, that translates into a loss of about $125 per month per job., This newstudy echoed findings in a 2016 University of Washington report on the effects of the first phase of Seattles increase in its minimum wage. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy The law reduces the rate to $14 an hour for businesses with 20 or fewer employees, but even they will be . Cook Countys minimum wage notice is here. What to Know About the 2 Candidates Facing Off in the April 4 Runoff Election, All Eyes On a Strong' System That Could Hit Chicago Area Friday, But Much Uncertainty Remains, Secret Service, Police Seen Investigating Business in Suburban Lisle, Who Did Your Ward Vote For? Location Address 69 W. Washington Street, Suite 1130, Chicago, IL 60602 Location Email human.rights@cookcountyil.gov Location Phone 312-603-1100 Location Fax 312-603-9988 Location Hours Sunday: Closed Monday: 8:30 am-4:30 pm Tuesday: 8:30 am-4:30 pm Wednesday: 8:30 am-4:30 pm Thursday: 8:30 am-4:30 pm Friday: 8:30 am-4:30 pm Saturday: Closed Midyear 2022 Minimum Wage Increases. Latest News more. story The MWO sets the lowest amount an employer must legally pay their employees. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. Teenagers (under the age of 18) are not entitled to the minimum wage. 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. Burnham Effective July 1, 2023, the District's Minimum Wage and Living Wage will increase to $17.00. State of Illinois Minimum Wage and Tipped Wage, Cook County Tipped Wage Increase as of January 1, 2022. hb```a``Abl@YsNu!e!B[*.l^\l5HmheY2E Q,PM@Z" Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. July 1, 2022 Minimum Wage. Again, this increase may not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. Intake interviews are by appointment only, please call or email to make an intake appointment. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Smaller employers (100 or fewer employees) continue paying at least $13.50 until July. The employer maintains a business facility in Cook County or is issued a business license by Cook County. 69 W. Washington Street, 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. 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. Employees who believe that their employer has violated the Cook County Living Wage Ordinance should contact the Cook County Commission on Human Rights about filing a complaint. Gov. After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. 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. These updated notices should also be posted with other legally-required posters. This site is protected by reCAPTCHA and the Google Privacy Policy And while a large chain might be able to absorb the costs of a minimum wage hike by hiring fewer new employees, these costs impose greater hardships on small businesses. Coverage depends on the physical location (in Minneapolis) of the employee while performing work, regardless of the employee's age. 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. Cook County Government. 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. c`f^ g`f@W00ke` E Effective July 1, 2022, the minimum wage for non-tipped workers increased to $13.35. Cook County Government. Next year on January 1, that will increase to $10.50. MIT labor economist David Autor said in a statement reported by the Los Angeles Times, [The study] suggests we should be proceeding cautiously when we start pushing minimum wages into ranges where they are pretty significant., The June 2017 study echoed the 2016 report by University of Washington researchers on the effects of the first phase of Seattles increase in its minimum wage, when the rate increased to as much as $11 an hour from $9.47 an hour. endstream endobj startxref These range from $12.32 in Santa Fe, New Mexico, to $17.54 in SeaTac, Washington. The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. Raising the minimum wage and mandating paid sick leave might sound pro-worker, but leaders in many Cook municipalities have said these measures would impose heavy burdens on businesses, and result in fewer jobs for residents. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; . Chicago: On December 5, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Fair Workweek Ordinance In Chicago, enhancements to the Fair. 1/26 . This site is protected by reCAPTCHA and the Google Privacy Policy $8.75 (for employers offering specified health benefits) $9.75 (for all other employers) 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. Minimum wages for tipped employees such as restaurant servers will increase to $9.24, and $8.70 for small businesses. 5 Although the county minimum wage exceeds the state rate, the state minimum cash wage (MCW . 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. 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 . Effective July 1, 2022. Optional Illinois Labor Law Posters 6 PDFS. It is not to be used as a substitute for legal advice or counsel. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Complaint forms and additional informationcan be found online. Complaint forms and additional informationcan be found online. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. Bartlett 5. Bedford Park 6. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). 42-16. Cook's Minimum Wage Ordinance does not apply to the city of Chicago, which has its own Ordinance. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. Spanish-Language Posters. 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. 80% of Cook County municipalities have opted out of minimum wage, sick leave ordinances, countys minimum wage and sick leave ordinances, unemployment in Chicago or Cook County, respectively, reaches 8.5 percent, highest black unemployment rate in the nation. Since Cook County passed its minimum wage and sick leave ordinances in October 2016, Illinois Policy Institute research shows 107 Cook County municipalities have opted out of both ordinances, one municipality has opted out of only the sick leave ordinance, and three municipalities have opted out of only the minimum wage ordinance. Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. The hourly minimum wage in Cook County, Illinois, will increase to $13.35 for nontipped employees and $7.40 for tipped employees effective July 1, according to the county's minimum wage webpage on May 31. . Pursuant to the MWO (Sec. Across the state, inflation has far exceeded wage growth. Each year the minimum wage increases according to a formula set by the Ordinance. starts here. A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. Chicago City Council passed a minimum wage increase for Chicago in 2014, setting the minimum wage in the city at $10 per hour in 2015, and raising it incrementally every year until it hits $13 per hour in 2019. The MWO sets the lowest amount an employer must legally pay their employees. With the increases in the Chicago and Cook County minimum wage, the minimum wage paid to tipped employees will also increase. Connecticut. Schaumburgs Woodfield Mall is a shopping destination with dozens of stores and eateries. 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. 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. 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. For example, someone over 18. 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. 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. 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) 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. Burbank 15. This site is protected by reCAPTCHA and the Google Privacy Policy In Cook County, the minimum wage will increase to $13.35 for non-tipped workers and to $7.40 for tipped workers in Barrington Hills, Berwyn, Countryside, Deerfield, Dolton, Evanston, Glencoe, Kenilworth, McCook, Northfield, Oak Brook, Oak Park, Phoenix, Skokie, University Park, Western Springs, Wilmette and Winnetka. Tipped employees will increase from $7.20 an hour to $7.40 an hour. 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. In addition to the minimum wage increases July 1, Chicago businesses in. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). 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. Cook County to Raise Minimum Wage to $13.35 Starting July 1. 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. 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. 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. 2023 CBS Broadcasting Inc. All Rights Reserved. This guide is intended for market awareness only. Get browser notifications for breaking news, live events, and exclusive reporting. 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? The minimum wage in Illinois is set to increase another dollar on Saturday, Jan. 1, 2022. 6-105-050 Wage theft. 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 Washington Post summarized the study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase.