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While the federal minimum wage is $7.25 per hour, and Illinois statewide minimum wage is currently $8.25 per hour, the city of Chicago and Cook County have each hiked their minimum wages even higher. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. 16-5768 (MWO) was passed by the Cook County Board of Commissioners on October 26, 2016. Nevada. Ordinance No. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. 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. Increases in minimum wages can drive some firms out of business entirely. They will be based on percentage increases determined by the . 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 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). 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. 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. 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. 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. Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. 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. 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. Burnham 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. Chicago Office | Illinois Policy 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. 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. Brookfield 13. 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. 107 localities opt out of both Cook County ordinances. Neither scenario will be friendly for Illinoisans, however they appear unavoidable as record spending and wide-spread federal stimulus coupled with supply chain disruptions and pent-up demand from COVID-19 have created our current inflationary environment. 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. story comeback Across the state, inflation has far exceeded wage growth. (The rates apply differently depending on factors such as the size of the employer.) Illinois This guide is intended for market awareness only. Effective July 1, 2022, the minimum wage for non-tipped workers increased to $13.35. Raising the minimum wage and mandating paid sick leave might sound pro-worker, but leaders in many municipalities in the Chicago area have said these measures could have the opposite effect and result in fewer jobs for residents in their communities. 6-105-045 Paid sick leave. Minimum wages for Chicago and Cook County are increasing July 1. c`f^ g`f@W00ke` E 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. 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. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices.. 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 However, this is set to change in 2020, when the state will raise the minimum wage to $10.00. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. The black unemployment rate in Illinois is more than double the states jobless rate for white residents. 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. 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 . 2.04), Cook Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Starting July 1, the minimum wage in Chicago and Cook County will be $13 per hour. It is not to be used as a substitute for legal advice or counsel. endstream endobj 303 0 obj <>/Metadata 26 0 R/Pages 300 0 R/StructTreeRoot 47 0 R/Type/Catalog/ViewerPreferences<>>> endobj 304 0 obj <. 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. Back to Index. 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. In Chicago, the minimum wage paid to tipped employees will increase to $9.24 per hour for employers with 21 or more employees and $8.70 per hour for employers with 4-20 employees. The tip credit notice must inform the tipped employee: (1) of the new hourly rate; (2) the amount of the tip credit taken (i.e., the difference between the full minimum wage and the tipped minimum wage); (3) that all tips received by the employee must be retained by the employee (except for tip pooling/sharing arrangements); and (4) that the tip credit will not be taken for employees who do not receive the notice. It is not surprising that so many municipalities are rejecting ordinances that can make it even harder for businesses to stay afloat, and to provide job opportunities for residents who need them. 1-888-273-3274. Blue Island 10. The tip credit notice need not be in writing, but it is a best practice to provide a written notice and have employees acknowledge receipt. Y*%+-KpxYp$V b For example, someone over 18. Copyright 2023 NBCUniversal Media, LLC. CHICAGO - The minimum wage in Illinois is set to increase at the start of 2023. Chicago and Cook County should follow suit and reconsider their minimum wage hikes. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. 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. 373 0 obj <>stream and Terms of Service apply. 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. (Ord. A bill to raise the Illinois minimum wage to $15 an hour by 2022 passed the Illinois Senate and House of Representatives in May. 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. 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. 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. Research on minimum wage laws backs up their sentiments. These range from $12.32 in Santa Fe, New Mexico, to $17.54 in SeaTac, Washington. Strategic Plan(English Version) Donar/Donate The Washington Post summarized the 2016 study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase. New study points to loss of jobs and work hours due to Seattles minimum wage increases, A June 2017 University 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 decline in total payroll for such jobs during the second phase of the wage hike in 2016, when rates climbed to as much as $13 an hour from as much as $11 an hour. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. Each year the minimum wage increases according to a formula set by the Ordinance. 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. $8.70 (effective July 1, 2022) Cook County $6.30 (current) $7.40 (effective July 1, 2022) Maryland: Use the interactive map to find the minimum wage for your county or metropolitan area. The updates can be viewed in EPI's interactive A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. Employers can contact the Cook County Bureau of Finance for advice regarding compliance with the Cook County Living Wage Ordinance. Chicago, IL 60602. The minimum wage for small businesses continues to increase towards $15 per hour by 2023. SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. And minimum wage hikes canreduce job opportunitiesin minority communities. 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. 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. Teenagers (under the age of 18) are not entitled to the minimum wage. 6-105-040 Overtime compensation. Sec. 6-105-010 Definitions. Emmanuel Elone . endstream endobj startxref There are Skokie families for whom this will mean serious financial hardship. 2023 Living Wage Poster 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). Teenagers (under the age of 18) must be paid the States minimum wage of $9.25. 6-105-050 Wage theft. The minimum wage for non-tipped workers will remain at $13.35 per hour. 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. 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. More than 50 municipalities have opted out of Cook Countys new mandates. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. Concerns for the effect on local businesses have played a significant part in many opt-out discussions. 6-105-020 Minimum hourly wage. 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. %%EOF 0 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. Schaumburgs Woodfield Mall is a shopping destination with dozens of stores and eateries. 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. 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. *%: M'pe`l;j 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. No. 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. Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. In Illinois, the minimum wage is currently set at $8.25. 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's Minimum Wage Ordinance does not apply to the city of Chicago, which has its own Ordinance. 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. Cook County Government. Unlike last year, where the unemployment rate was greater than 8.5%, the. %PDF-1.6 % 2023 CBS Broadcasting Inc. All Rights Reserved. Suite 400 As a reminder, the state of Illinois' minimum wage and tipped wage rates are set to increase on January 1, 2022. . This site is protected by reCAPTCHA and the Google Privacy Policy Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. 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 employer maintains a business facility in Cook County or is issued a business license by Cook County. Research on minimum wage laws backs up their sentiments. $14.00. 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. 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. On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers. Effective July 1, 2023, the District's Minimum Wage and Living Wage will increase to $17.00. 1305 Corporate Center Drive Employers with tipped employees have additional notice obligations. Chicago: On December 5, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). 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. . 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. *Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). Barrington 4. The MWO sets the lowest amount an employer must legally pay their employees. Large Employers; 21 or more employees; Small Employers; 4 to 20 employees; . Among the municipalities that have opted out are some of the areas major entertainment, restaurant and retail hubs. Of these, 26 raised their minimum wages on January 1. i Table 2 shows these New Year's Day increases. The new wage will be $12 an hour. 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. (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 . In 2019, Illinois Gov.. 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. The poverty rate reflects a person's gross annual income. story The 1-Year Compliance Plan offers required Federal and State posters plus 12 months of mandatory updates for free! Click here to review Cook County's minimum wage law. 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. Cook County and Chicago's annual minimum wage increases go into effect on July 1, 2022. 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 . As of 12/31/2022. Instead, they must be paid the States minimum wage for workers under the age of 18. 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