The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. The employer maintains a business facility in Cook County or is issued a business license by Cook County. 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. 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. 0 In 2019, Illinois Gov.. Unlike last year, where the unemployment rate was greater than 8.5%, the. Ordinance No. 6-105-020 Minimum hourly wage. 42-13) and rules (Sec. Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. Chicagos current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with four to 20 employees. Cook County minimum wage will not increase July 1, 2021, due to unemployment numbers. 373 0 obj <>stream $8.75 (for employers offering specified health benefits) $9.75 (for all other employers) c`f^ g`f@W00ke` E 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. First published on June 1, 2022 / 6:19 PM. 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. The Ordinance also applies even those who may be working within the County to make deliveries or driving within the County limits. In Cook County the . 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. Chicago Office | Illinois Policy The wage hike is part of an ordinance passed by Chicago Mayor Lori Lightfoot in 2019. Typically, workers should be paid the wage for the county where you work 50% or more of . comeback We have converted it to an hourly wage for the sake of comparison. $14.00. This guide is intended for market awareness only. In the event that the Cook County . The law reduces the rate to $14 an hour for businesses with 20 or fewer employees, but even they will be . 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. After 2020, the county minimum wage will be subject to increases based on the CPI. Nevada. Illinois 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. Click here to review Cook County's minimum wage law. and Terms of Service apply. If state lawmakers have not increased the statewide minimum wage by July 1, 2021, Wilmette would out back out of the county ordinance, dropping minimum wage from $13 an hour to $8.25 an hour. On January 1, 2022, we saw the Illinois minimum wage increase from $11.00 to $12.00. and Terms of Service apply. Published July 9, 2022 . Increases in minimum wages can drive some firms out of business entirely. 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. The new wage will be $12 an hour. Complaint forms and additional informationcan be found online. Smaller employers (100 or fewer employees) continue paying at least $13.50 until July. 2023 Living Wage Poster $13.00 (No Change) $7.20 5 (60) $5.80 (-60) Maine. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. In Chicago, on July 1, 2022, the minimum wage for non-tipped workers rose from $15 to $15.40 for large businesses that employ 21 or more workers, and for $14.50 for . t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy GovDocs, Inc. 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. 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 MWO sets the lowest amount an employer must legally pay their employees. 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. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy Massachusetts laws Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). July 1, 2022; Evanston: $12.00 per hour: $13.00 per hour: $13.00 per hour: $13.35 per hour: Chicago: $13.00 per hour: $14.00 per hour: $15.00 per hour: . 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. The Cook County Board effectively admitted that wage hike mandates can depress employment when they included unemployment escape clauses in the ordinances. 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 If a suburb opted-out, the Illinois minimum wage applies. The minimum wage for non-tipped workers remains $13.35. 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. The MWO sets the lowest amount an employer must legally pay their employees. 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. 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. 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. 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 . Inflation has rapidly outpaced wage growth, cutting the average Illinoisans pay by $2,200. 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. Burbank 15. After 2020, the county minimum wage will be subject to increases based on the CPI. 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. 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. 6-105-030 Minimum hourly wage in occupations receiving gratuities. 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. For this reason, more than 50 municipalities in Cook County more than one-third have opted out of the pending minimum wage hike and sick leave mandate, according to the Chicago Sun-Times. 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) The black unemployment rate in Illinois is more than double the states jobless rate for white residents. Connecticut. 42-13) and rules (Sec. 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. July 1,2022 Effective Date. 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. Suite 400 The Daily Herald reported that the Des Plaines City Council voted to opt out of the ordinances June 19, reversing a previous decision to go along with the laws. In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . The county's hourly minimum wage will remain unchanged at $13.00. For Illinoisans, this presents an unpleasant tradeoff: continued high inflation or an increase in unemployment because of rising interest rates. endstream endobj 303 0 obj <>/Metadata 26 0 R/Pages 300 0 R/StructTreeRoot 47 0 R/Type/Catalog/ViewerPreferences<>>> endobj 304 0 obj <. 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. The Commission investigates complaints to determine if a violation of the Ordinance has occurred. 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? Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. And the Glenview board of trustees voted 4-1 on June 8 to opt out of Cook Countys minimum wage hike and sick leave ordinances, according to the Chicago Tribune. In addition, Chicago employers must provide all employees a notice of the minimum wage increases by July 31, 2022. Tipped employees will increase from $7.20 an hour to $7.40 an hour. Cook County, which has its own minimum wage ordinance, will also increase its minimum wage on July 1, from $13 to $13.35 for non-tipped workers . 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. 2021 Minimum Wage. The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry. Suite 1130, $13.00. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 Mandatory Cook County IL Labor Law Notices. J.B. Pritzker signed legislation in 2019 putting . Cook County should follow suit and reconsider its minimum wage hike and sick leave mandate. Cook County to Raise Minimum Wage to $13.35 Starting July 1. The unemployment rate in Cook County for the previous year was equal to or greater than 8.5%. Copyright 2023 NBCUniversal Media, LLC. 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. 107 localities opt out of both Cook County ordinances. 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. Notice effective on July 1, 2022. Again, this increase may not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. With the increases in the Chicago and Cook County minimum wage, the minimum wage paid to tipped employees will also increase. Cook County Government. This year the . And minimum wage hikes canreduce job opportunitiesin minority communities. . Across the state, inflation has far exceeded wage growth. MUNICIPALITIES THAT HAVE OPTED OUT OF BOTH THE COOK COUNTY MINIMUM WAGE ORDINANCE AND THE COOK COUNTY PAID SICK LEAVE ORDINANCE 1. 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. comeback After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. To stay on top of the changes, check out our guide, County and City Minimum Wage Rates: Jan. 1, 2023. As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. And minimum wage hikes canreduce job opportunitiesin minority communities. State. Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. $12.75 (60) $6.38 (30) $6.37 . 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. 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. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. 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. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. / CBS Chicago. Emmanuel Elone . 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. (Ord. 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. Bensenville 8. Under federal law, employers must notify tipped employees that the employer is taking the tip credit, including any changes to their rate of pay. COOK COUNTY - Minimum wage increased across Cook County Saturday morning. 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). The minimum wage for small businesses continues to increase towards $15 per hour by 2023. A campaign to raise the minimum wage has captured headlines throughout Illinois in May and June. Published January 1, 2022. 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. The state minimum wage is currently $12 an hour. 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. 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. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. Barrington 4. 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. Spanish-Language Posters. 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. Effective July 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. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 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 black unemployment rate in Illinois is more than double the states jobless rate for white residents. The report also found that minimum wage hikes deter the entry of new businesses into the restaurant industry by 4-6 percent for each $1 increase in the wage rate. Schaumburgs Woodfield Mall is a shopping destination with dozens of stores and eateries. Copyright 2023 GovDocs, Inc. GovDocs is a registered trademark of GovDocs, Inc. Economic hubs of Denver, Seattle and Minneapolis, A jurisdiction with rate over $19 an hour. 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 . State minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). 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. Statewide, black Illinoisans had a jobless rate of 12.7 percent in 2016, according to Bureau of Labor Statistics data; Illinois is tied with Nevada for the highest black unemployment rate in the nation. 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. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 42-16. starts here. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices.. The Washington Post summarized the study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase. This site is protected by reCAPTCHA and the Google Privacy Policy Arlington Heights 3. 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. Fair Workweek Ordinance In Chicago, enhancements to the Fair. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; . %%EOF 802 South 2nd Street | Springfield, IL 62704 Effective January 1, 2023, the minimum wage for tipped workers increases to $7.80, in alignment with the Illinois State minimum wage. The increases in suburban Cook County will not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Instead, they must be paid the States minimum wage for workers under the age of 18. The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). 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. 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. Wages at smaller businesses will increase to $13.50. 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 wages for tipped employees such as restaurant servers will increase to $9.24, and $8.70 for small businesses. It is not to be used as a substitute for legal advice or counsel. The minimum wage debate has captured Illinois headlines this summer as local ordinances to hike the minimum wage and mandate paid sick leave took effect in Cook County July 1. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. Y*%+-KpxYp$V b 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. The MWO sets the lowest amount an employer must legally pay their employees. Any time worked in 2022 must reflect the new $12 an hour minimum wage. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater.
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