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. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. 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. Burnham The Commission investigates complaints to determine if a violation of the Ordinance has occurred. 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. As of 12/31/2022. 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. Fair Workweek Ordinance In Chicago, enhancements to the Fair. 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. Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. For Illinoisans, this presents an unpleasant tradeoff: continued high inflation or an increase in unemployment because of rising interest rates. CHICAGO - The minimum wage in Illinois is set to increase at the start of 2023. The wage hike is part of an ordinance passed by Chicago Mayor Lori Lightfoot in 2019. Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. . The increases in suburban Cook County will not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. Cook's Minimum Wage Ordinance does not apply to the city of Chicago, which has its own Ordinance. Typically, workers should be paid the wage for the county where you work 50% or more of . Not to be outdone, the City of Chicago and Cook County are increasing their set minimum wages on July 1, 2022. t 217.528.8800 f 312.212.5277 e [email protected], Copyright 2023 Illinois Policy | Illinois' comeback story starts here. No. 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. Sec. Bedford Park 6. 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. Blue Island 10. 6-105-040 Overtime compensation. The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. After 2019, the minimum wage will be subject to annual increases based on the consumer price index, or CPI. Coverage depends on the physical location (in Minneapolis) of the employee while performing work, regardless of the employee's age. The study authors noted that according to U.S. Bureau of Labor Statistics data, the restaurant industry uses minimum wage workers more than other sectors. All Rights Reserved. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Chicago passed a similar sick leave ordinance in 2016. More than 50 municipalities have opted out of Cook Countys new mandates. And in Skokie, where a move to opt out failed on a 3-3 tie vote July 6, according to the Skokie Review, a trustee who voted to opt out cited her concern for struggling business owners, who would face significant difficulties under the new mandates. hb```a``Abl@YsNu!e!B[*.l^\l5HmheY2E Q,PM@Z" 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. The employer maintains a business facility in Cook County or is issued a business license by Cook County. Cook County and Chicagos annual minimum wage increases go into effect on July 1, 2022. Pay depends on the type of job, size of company, age of the worker and more. 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. and Terms of Service apply. 2022 to $7.20. Latest News more. The new wage will be $12 an hour. Illinois . In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. In 2019, Illinois Gov.. This guide is intended for market awareness only. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. Published January 1, 2022. Illinois Tipped employees will increase from $7.20 an hour to $7.40 an hour. Next year on January 1, that will increase to $10.50. If the tipped wage plus tips does not equal the . CHICAGO (CBS) In just a month, minimum wage in Cook County will increase from $13 an hour to $13.35 an hour for non-tipped workers. hbbd```b`` "7H$)[ "d2 "kl}8#}6D@{>m"E`s3UVH``q[ DAd8qX A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. This year the . The updates can be viewed in EPI's interactive Burbank 15. As a reminder, the state of Illinois' minimum wage and tipped wage rates are set to increase on January 1, 2022. . Pursuant to the MWO (Sec. 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. Workers under 18 will see a $12 minimum wage for non-tipped jobs, and $7.20 for tipped. In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . story Employers should provide new tip credit notices every time a tipped employees wage rate changes. 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. Complaint forms and additional informationcan be found online. Emmanuel Elone . Unlike last year, where the unemployment rate was greater than 8.5%, the. Cook Countys minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. 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. 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. The unemployment rate in Cook County for the previous year was equal to or greater than 8.5%. 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). SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. Connecticut. 42-16. and Terms of Service apply. First published on June 1, 2022 / 6:19 PM. Both are increasing July 1 to $15.40 and $14.50, respectively. Each year the minimum wage increases according to a formula set by the Ordinance. Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour. 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 Minimum wage increases can make it harder for teens to get starter jobs, and can hurt minority communities. 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. 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. %%EOF Officials in municipalities that voted against the Cook County wage hike and sick leave mandates have expressed concern for the job-killing effect they could have, especially given that many of these towns are near counties that have not increased the minimum wage or imposed new sick leave mandates. Get browser notifications for breaking news, live events, and exclusive reporting. The MWO sets the lowest amount an employer must legally pay their employees. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 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. June 1, 2022 / 6:19 PM Suite 1130, 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. $9.45 Cash Wage. 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. This is a huge victory for Chicagoans and Cook County residents looking to make higher wages. Nevada. FOX 32 Chicago. Minimum Wage - 2023; Derechos de los Trabajadores/Workers Rights (PowerPoint) Ayuda Legal del Condado de Cook para inquilinos y propietarios Contacto/Contact; Plan Estratgico/Strategic Plan. 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). A bill to raise the Illinois minimum wage to $15 an hour by 2022 passed the Illinois Senate and House of Representatives in May. 6-105-020 Minimum hourly wage. Illinois provides an additional six labor law posters that are either optional to post, or mandatory only for certain types of employer. May 31, 2022, 7:59 PM. In October 2016, the Cook County Board voted to raise the countys minimum wage to $13 by July 2020. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy 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. 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. 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. The MWO sets the lowest amount an employer must legally pay their employees. 802 South 2nd Street | Springfield, IL 62704 Within the urban growth boundary, including parts of Clackamas, Multnomah, . On January 1, minimum wages went up in 20 states. Effective July 1, 2021, the minimum wage for non-tipped workers will remain $13.00. All Domestic Workers must receive at least the $15.40 minimum wage. 42-13) and rules (Sec. July 1, those rates will rise to $13.35 for non-tipped workers and $7.40 for tipped workers. New minimum wages in effect July 1 for Chicago, Cook County. 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 Center Square) - Eastern Washington Congresswoman Cathy McMorris Rodgers, R-Spokane, helped reintroduce bipartisan, bicameral legislation to advocate for the rights of disabled workers this . Bartlett 5. Please enter valid email address to continue. Currently, 39 localitiescities and countieshave minimum wages that are higher than their state minimum wage. Teenagers (under the age of 18) are not entitled to the minimum wage. Check this list carefully to see if any of these labor posters are relevant to your business. These updated notices should also be posted with other legally-required posters. The minimum wage for tipped workers increased to $7.40. Optional Illinois Labor Law Posters 6 PDFS. The Minimum Wage in Minneapolis has reached $15, and will rise to $15.19 on Jan. 1, 2023, for franchises and large businesses. Cook County Minimum Wage. The MWO sets the lowest amount an employer must legally pay their employees. Cook County. Effective January 1, 2023, the minimum wage for tipped workers increases to $7.80, in alignment with the Illinois State minimum wage. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. Cook County to Raise Minimum Wage to $13.35 Starting July 1. Of these, 26 raised their minimum wages on January 1. i Table 2 shows these New Year's Day increases. 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. $12.75 (60) $6.38 (30) $6.37 . Pursuant to the MWO (Sec. Rise from $ 13 for non-tipped workers will increase to $ 13.35 an hour $. 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