For Illinoisans, this presents an unpleasant tradeoff: continued high inflation or an increase in unemployment because of rising interest rates. 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. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; . -Cook County. 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 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 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. Effective July 1, 2022, the minimum wage will increase to $13.35 for non-tipped workers and $7.40 for tipped employees. The employer maintains a business facility in Cook County or is issued a business license by Cook County. 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. Last year, the minimum wage was $11 and $6.60, respectively. David Brown to Resign Later This Month, Who are Brandon Johnson and Paul Vallas? Alsip 2. Spanish-Language Posters. 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. 6-105-045 Paid sick leave. The minimum wage is $6.60 for tipped employees. Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. On January 1, minimum wages went up in 20 states. 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. 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . 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). Chicago: On December 5, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Chicago and Cook County should follow suit and reconsider their minimum wage hikes. 42-13) and rules (Sec. Tipped employees will increase from $7.20 an hour to $7.40 an hour. Reflecting on the River Forest Village Boards unanimous vote 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. Effective Jan. 1, the statewide Illinois minimum wage will rise to $13 per hour for non-tipped employees ages 18 and . In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . Nevada. Copyright 2023 NBCUniversal Media, LLC. Cook County Government. 42-13) and rules (Sec. The MWO sets the lowest amount an employer must legally pay their employees. comeback Get browser notifications for breaking news, live events, and exclusive reporting. $12.75 (60) $6.38 (30) $6.37 . Municipal leaders have expressed concerns about the anti-competitive, job-killing effects of Cook Countys minimum wage increases and new sick leave law and are using home rule authority to exempt their communities from the requirements. 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. Burbank 15. A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. The minimum wage is $6.60 for tipped employees. We have converted it to an hourly wage for the sake of comparison. Ordinance No. 2.04), Cook Countys 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. 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. J.B. Pritzker signed legislation in 2019 putting . Chicago, IL 60602. Cook County Government. / CBS Chicago. (The Center Square) - Eastern Washington Congresswoman Cathy McMorris Rodgers, R-Spokane, helped reintroduce bipartisan, bicameral legislation to advocate for the rights of disabled workers this . This site is protected by reCAPTCHA and the Google Privacy Policy 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. 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. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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). Subscribe to our blog for the latest employment law news. 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. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). 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. July 1, those rates will rise to $13.35 for non-tipped workers and $7.40 for tipped. Bensenville 8. $9.45 Cash Wage. dinance 3 FREQUENTLY ASKED QUESTIONS 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. July 1,2022 Effective Date. 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. Cook County to Raise Minimum Wage to $13.35 Starting July 1. 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. 802 South 2nd Street | Springfield, IL 62704 6-105-030 Minimum hourly wage in occupations receiving gratuities. Emmanuel Elone . In addition to the minimum wage increases July 1, Chicago businesses in. Cook County and Chicago's annual minimum wage increases go into effect on July 1, 2022. Buffalo Grove 14. 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 increases in suburban Cook County will not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. The updates can be viewed in EPI's interactive 42-13) and rules (Sec. Published January 1, 2022. As a reminder, the state of Illinois' minimum wage and tipped wage rates are set to increase on January 1, 2022. . What is the minimum wage in Cook County 2022? Any time worked in 2022 must reflect the new $12 an hour minimum wage. . 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. Bridgeview 11. The state minimum wage is currently $12 an 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". 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. 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