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Tuesday, January 24, 2023

What Is Chicago Minimum Wage

How Should Small Business Owners Prepare For Changes That Are Being Made

Chicago, Cook County minimum wage increase takes effect

Every business is different, so there isnt one right way to prepare. Here are a few options you may want to consider:

  • Audit your expenses: Check your cash flow in detail and create a hiring plan that you can afford. In some cases, you may find that hiring temporary workers as needed is less expensive than taking on full-time regular staff.
  • Make sure you hire and keep the right employees: Replacing an employee costs a lot. You decrease the total cost associated with recruiting and training when you hire the right people. Look for candidates who have good track records, come recommended, and fit in with the company culture. Once employees are onboarded, make sure you build a relationship and provide paths for employee growth it makes it more likely that they will stay in their role.
  • Increase prices: This is a great way to increase cash flow. Customers are rarely happy with a price hike, but keep in mind that your competitors will be forced to do the same. Just make sure you keep track of trends, and dont raise prices too high.
  • Update tech: Consider automating certain aspects of the work , and find ways to reduce production costs.

As always, to make sure your business is prepared and stays in compliance , we recommend that you discuss these upcoming changes to the Illinois minimum wage laws with your accountant and lawyer.

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Chicagos Minimum Wage Is Now $15 Per Hour Heres What To Know

Chicagos minimum wage is now at $15 per hour, four years before the state is set to reach that bench mark.

Groups like Fight for $15 have been lobbying for those increases for years, and a handful of large retailers have already boosted wages to that level or higher. Some announced raises for essential workers during the COVID-19 pandemic last year. Others have boosted pay more recently as theyve struggled to attract new hires.

Still, the city estimates more than 400,000 people will get a raise due to the minimum wage increase.

This is a happy day, Mayor Lori Lightfoot said at the Painters District Council 14 headquarters Thursday, calling Chicagos minimum wage increase one of the most critical pieces of legislation to be introduced during my administration.

Patricia Evans, a home care worker with Help at Homes, said she earned $9.10 when she started at the company about eight years ago, and was making a little more than $14 per hour until Chicagos minimum wage increase took effect Thursday.

People who are impacted need to speak up and explain the wage theyre getting isnt livable and it isnt just, said Evans, 68, of Stony Island Park, who said she has lobbied for minimum wage increases as a member of her union, SEIU Healthcare.

Heres what you need to know about the changes.

What are the new Chicago minimum wages?

Will there be future increases?

Smaller employers will see the minimum wage increase $0.50 per year until it reaches $15 per hour in 2023.

New Legalized Drug Laws

Voters in both states, which currently offer medical marijuana to adults, passed ballot measures in November that approved the change.

As of Jan. 1, 21 states and the District of Columbia offer adult residents legalized recreational and medicinal marijuana.

In 2020, Oregon voters approved a ballot measure that made the state the first in the nation to legalize recreational psychedelic mushrooms, specifically Psilocybin. However, adult residents will only be allowed to use the drug in a supervised, state-approved center.

Starting Jan. 4, 2023, the Oregon Health Authority will begin accepting applications for Psilocybin manufacturers and the agency is expected to begin opening Psilocybin centers for residents later in the year.

Colorado voters also passed a ballot measure in the last election to legalize psychedelic mushrooms. While the substance won’t be available for some time as the state works out the specifics of its regulations, the state will decriminalize those substances by Jan 4, 2023, according to the Colorado Sec. of State’s office.

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Minimum Wage Requirements Under Federal And State Law

Minimum wage is set either by federal law or state law. An employer must pay whichever minimum wage happens to be higher. The current federal minimum wage is $7.25 per hour. The minimum wage in the state of Illinois, is currently $8.25 per hour. This applies to employers with four or more employees, excluding family members. If you are not being paid the proper wage, it is important to speak with our Illinois employment law attorneys immediately.

Wage & Hour Law In Illinois

Illinois / Chicago Minimum Wage Poster

In the U.S., there are labor laws that focus on the rights and restrictions of individuals working in the country. Among the most important of these laws are the Wage & Hour laws created by the federal Fair Labor Standards Act . Wage & Hour laws fall in the category of individual labor laws and their primary objective is to regulate the wage rates an employee working in the States is entitled to and the work hours for which he or she must be compensated by their employer.

Wage & Hour Law in Illinois

Like all other states, the state of Illinois has implemented its own set of Wage & Hour laws supplementing federal laws that create some basic wage and hour protections for most employees who work in Illinois. The protections offered from the Wage & Hour law in Illinois are beyond the general U.S. standards as outlined in the FLSA.

If you are looking for more information on Wage & Hour law in the great state of Illinois, you have come to the right place. Throughout this feature, we will go into the different legal codes that come under the Wage & Hour laws in Illinois as well as their key requirements and notable exceptions.

Minimum WageWhat Is It?

The minimum wage simply refers to the lowest hourly rate employers are legally allowed to pay their employees.

Minimum Wage Law in Illinois

That being said, various positions and types of workers may be exempt from Illinois minimum wage law. These are stipulated by the experience and condition of the employee.

OvertimeWhat Is It?

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Chicago Minimum Wage : Conclusion

Ultimately, this will be a boon for low-income workers in Chicago. But that doesnt mean that businesses in the city dont have real concerns. After all, theyre already paying their employees more than the states current minimum wage of $8.25 an hour, and they may struggle to compete with businesses in neighboring towns where wages are lower. Either way, this law goes into effect next month, and itll take time to see just how well it works for everyone involved.

A Turning Point For Chicago Workers

The campaign also began around the time that teachers mounted an historic strike in Chicago. In September of 2012, less than two years into former Mayor Rahm Emanuels first term in office, the Chicago Teachers Union won higher pay for teachers and more favorable evaluation criteria after striking for seven days. The boldness and success of the action breathed new life into the citys labor movement, including the new coalition that was pushing for a higher minimum wage.

Its hard to imagine that demand is that clear without those workers having just seen 25,000 teachers go on strike and win against really, really long odds, said Han.

The inaugural public event for the campaign, marching down the Magnificent Mile on Black Friday, took place two months after the teachers strike was resolved. For many of the workers who became involved in the movement, it was the first time they had ever publicly advocated for themselves.

When I finally took part in the Black Friday action, it was transformational in a lot of ways in my life, said Robert Wilson Jr., who was working for McDonalds at the time. Wilson, now 33 years old and living in El Paso, Texas, recalled the last business they marched to that day happened to be his own workplace the McDonalds at Navy Pier.

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Walmart Minimum Wage 2022

Thursday, June 2, 2022 e-Edition Facebook Walmart will pay the $15 minimum wage that retail workers have been targeting for years. The new minimum wage in deli and. Walmart WMT, +0.16% has joined a growing list of retailers boosting employeeswages to $15 an hour, but unlike rivals such as Target TGT, +1.37%, Amazon AMZN, +0.77% and Costco COST, +0.24%,.

workday mcgill

Chicago Minimum Wage Increase: What Do Employers Need To Know

Chicago’s minimum wage to rise above $15 an hour for the first time

On Nov. 26, 2019, the Chicago City Council voted to increase the city’s minimum wage to $15/hour by 2021 for certain employees. Earlier this year, Illinois amended its minimum wage law to gradually increase the minimum wage for Illinois employees to $15/hour by 2025. But proponents of increasing Chicago’s minimum wage argued that the cost of living in Chicago relative to the rest of the state requires a faster timeline. The city council has now enacted two major goals of Mayor Lightfoot’s one-year plan: the Fair Workweek Ordinance and an increase in the minimum wage.

The amendment to Chicago’s Minimum Wage Ordinance increases the citys minimum wage on the following schedule for employers with over 20 employees:


Every July 1 afterward

Increases in proportion to any increase in the Consumer Price Index

And the citys minimum wage for employers with over three employees, but fewer than 21 employees, increases by 50 cents each year:


Every July 1 afterward

Increases in proportion to any increase in the CPI

The amendment keeps in place a section in the Ordinance related to collective bargaining agreements . Employers may include in CBAs: provisions in excess of the applicable minimum standards of the Ordinance and waiver of the Ordinance’s requirements in clear and unambiguous terms. Under certain circumstances, applicable precedents under the National Fair Labor Standards Act may preclude enforcement of the CBA waiver provision of the Ordinance.

Tipped Employees

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Minimum Wages Efficiency And Welfare

Simon Mongey View Finding

Recent debate about the US federal minimum wage has centered around the call to boost the rate to $15 an hour from the current $7.25, which has been in place since 2009. In addition, the minimum wage has remained roughly constant in real terms since the late 1980s. Fifteen dollars is more than 2019 wages for 41 percent of workers without a college education, 11 percent for college educated workers, and 29 percent for workers overall .

There are two key rationales for a positive minimum wage: efficiency and redistribution. In the first case, if firms have market power in the labor market, wages are generically less than the marginal product of labor, and employment at each firm is inefficiently low. Writing in 1933, before the introduction of the federal minimum wage in 1938, labor economist Joan Robinson described how a minimum wage could help alleviate efficiency losses from monopsony power by inducing firms to hire more workers . Regarding redistribution, a higher minimum wage has the potential to benefit low-income workers and reduce profits that tend to accrue to business owners and high-income workers, redistributing economic output.

When the authors model is calibrated to US data it proves consistent with a wide body of empirical research on the direct and indirect effects of minimum wage changes, and delivers the following findings:

How Are Minimum Wage Increases Decided

The citys minimum wage increases are laid out in its minimum wage ordinance. Until this year, the minimum wage for larger employers in Chicago increased $1 per year. This year and beyond, the minimum wage increase for large employers is pegged to the Consumer Price Index or 2.5%, whichever is lower.

Unfortunately, the Consumer Price Index this year exceeded that, Fox said. That means that even though inflation hit 8.6% in May, the minimum wage increase is capped at 2.5%.

If the citys unemployment rate meets or exceeds 8.5% in a given year, there will be no minimum wage increase the next year.

The minimum wage for medium-sized employers increased 50 cents this year. It will reach $15 on July 1, 2023.

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What Is The New Minimum Wage

As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. For medium-sized companies with between four and 20 employees, workers must make a minimum of $14.50 an hour, up from $14 last year.

Domestic workers, including people who work in child care, housekeeping and home health services, must make $15.40 regardless of employer size.

Ways That Employers Try To Get Around Wage Laws

Minimum wage hike gets approved, Chicago reacts

While some employers may flat-out refuse to pay their employees what is mandated by federal and state law, most employers who violate this law will do so in a less obvious way. Some of the ways that employers may try to get around wage laws include:

  • Paying lower rates that are approved for trainees to employers that cannot be classified as trainees
  • Forcing employees to work off-the-clock
  • Misclassifying employees as volunteers

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Can I Be Fired For Asking About The Minimum Wage

No. It is illegal for your employer to fire or retaliate against you in any way for asking about minimum wages.

If you feel you have been retaliated against for asking or complaining about wages, you should

  • Contact the Illinois Department of Labor,
  • Contact the US Department of Labor, or
  • Speak with a lawyer.

Cities And Counties With Higher Minimum Wages

There are 45localities that have adopted minimum wages above their state minimum wage, including cities and counties in Alabama, Arizona, California, Colorado, Illinois, Maryland, Minnesota, New Mexico, New York, Oregon, and Washington.

Minimum wage rates may change during the calendar year. Check with your state department of labor for rates and wages specific to your location.

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Damarr Brown Voted Fan Favorite On Top Chef

Although he came in fourth in this season of Top Chef, Damarr Brown, who in his regular life is chef de cuisine at Virtue in Hyde Park, came in first in the publics hearts. Brown was voted fan favorite this season by viewers who appreciated his deadpan style and his skill at rescuing dishes from disaster at the last second. Many people told me I need to smile more, talk more, be more excitable, Brown wrote in . Even though those people meant well and I actually tried to follow alot of the advice given, I couldnt help but be myself, the fact that people resonated with that means more than I can verbalize. The fan favorite award comes with a $10,000 prize. Past fan favorites include fellow Chicagoan Stephanie Izard , Sheldon Simeon, and Carla Hall.

Chicago Minimum Wage Increase To $15

Chicago minimum wage goes up to $15 an hour, but not for everyone

Chicago’s minimum wage increases to $15-an-hour takes effect Thursday. The rate remains $11-an-hour in Illinois.

CHICAGO — Chicago’s minimum wage increase to $15-an-hour took effect Thursday.

For tipped workers, the rate goes up to $9-an-hour. Their employers are required to make up the difference if tips don’t get them up to $15-an-hour.

The Cook County minimum wage for non-tipped workers will remain at $13-an-hour. The minimum wage is $6.60 for tipped employees.

“There is a great sense of pride that people have when they understand the power that they truly have to be able to make and create change, not only in their own lives but the lives of everybody else in the city,” said Erica Bland-Durosinmi, SEIU Healthcare Illinois executive vice president.

Bland-Durosinmi was part of the team that coordinated for SEIU Healthcare Illinois, one of the organizations that led the charge to raise the minimum wage.

“They don’t want to get paid the bare minimum when they are out working every day, and they deserve to share in the profits that they help create,” she said.

“On its own raising min wage will give a raise are you ready for this for over 400,000 workers in our city,” said Mayor Lori Lightfoot. “And what this means in practical terms aside from the money is it helps create financial stability for our most vulnerable workers most of whom work in restaurants home health care or child care industries. But we know that isn’t enough.”

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What About The Minimum Wage Outside The City

Cook Countys minimum wage is also increasing July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. The county minimum wage increase is also pegged to inflation or 2.5%, whichever is lower.

The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. It is set to increase Jan. 1, 2023, to $13 and $7.80, respectively.

Illinois’ Minimum Wage Will Increase By $1 On New Year’s Day Department Of Labor Says

SPRINGFIELD — The minimum wage in Illinois is set to increase to $12 per hour on New Year’s Day, Department of Labor Public Information Officer Paul Cicchini said Monday.

That’s a $1 increase scheduled for Jan. 1. The department encouraged minimum-wage workers to “keep a close eye” on their paychecks in 2022. Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said.

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The new law maintains provisions for employers to count gratuities to offset wages for workers, such as food servers, who regularly earn tips, the department said. Tipped employees may be paid 60% of the hourly minimum wage. However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference.

The increase comes after Gov. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. There have been three increases in the minimum wage since Pritzker signed that legislation.

Prior to those increases, the last time Illinois raised its minimum wage was in 2010, when it increased to $8.25. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. It’s $14 an hour for smaller businesses in Chicago.

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