The Washington Post summarized the study: [A]lthough workers were earning more, fewer of them had a job than would have without an increase. %PDF-1.6 % 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. 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. Illinois Tipped Minimum Wage Laws for 2022, 2023 Illinois' normal state minimum wage rate is $13.00 per hour. 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. 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. A campaign to raise the minimum wage has captured headlines throughout Illinois in May and June. Inflation has rapidly outpaced wage growth, cutting the average Illinoisans pay by $2,200. 12/2021 - VESSA - Victims Economic Security and Safety Act - Will . SETS MINIMUM WAGE IN CHICAGO (MCC 6 -105) MINIMUM WAGE. The minimum wage as of July 1, 2022 will be: Currently the minimum wage in Cook County is $13 for non-tipped employees and $6.60 for tipped employees. With economists forecasting prolonged inflation, its likely the Federal Reserve will keep hiking interest rates. 802 South 2nd Street | Springfield, IL 62704 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. story Cook County and Chicago's annual minimum wage increases go into effect on July 1, 2022. Chicago passed a minimum wage ordinance in 2014. State: Jurisdiction/Minimum Wage: . By Emmanuel Elone. Research on minimum wage laws backs up their sentiments. 802 South 2nd Street | Springfield, IL 62704 The number of Cook County municipalities that have opted out of both ordinances has climbed to 107. 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. *2023 Poster is shipping now. t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy 1-Year Compliance Plan Best value The easiest way to stay compliant. 1-888-273-3274. Last year, the minimum wage was $11 and $6.60, respectively. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). 2021 Minimum Wage. 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. hb```a``Abl@YsNu!e!B[*.l^\l5HmheY2E Q,PM@Z" Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Concerns for the effect on local businesses have played a significant part in many opt-out discussions. It is not to be used as a substitute for legal advice or counsel. Editor/Writer . 2.04), the Cook County minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. Chicago Office | Illinois Policy t 312.346.5700 f 312.896.2500, Springfield Office | Illinois Policy Effective Jan. 1, the minimum wage for tipped workers increases to . Get browser notifications for breaking news, live events, and exclusive reporting. However, this is set to change in 2020, when the state will raise the minimum wage to $10.00. But more than 80 percent of Cook Countys 132 municipalities have opted out of the countys minimum wage and sick leave ordinances, with East Dundee voting to opt out July 17. Unlike last year, where the unemployment rate was greater than 8.5%, the unemployment rate is now under 8.5%, which means that the minimum wage for . *%: M'pe`l;j COOK COUNTY - Minimum wage increased across Cook County Saturday morning. Broadview 12. Wages at smaller businesses will increase to $13.50. Michigan announced that in 2022 its minimum wage will be $9.87 per hour and the minimum cash wage for tipped employees will be $3.75 . 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. Illinois The 1-Year Compliance Plan offers required Federal and State posters plus 12 months of mandatory updates for free! 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. 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. June 1, 2022 / 6:19 PM / CBS Chicago 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. Employers with tipped employees have additional notice obligations. c`f^ g`f@W00ke` E Effective July 1, 2022. Burnham 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. 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. Cook County's minimum wage will rise from $13 to $13.35 for non-tipped workers, and $6.60 to $7.40 for tipped. Brookfield 13. Berkeley 9. All Rights Reserved. For Cook County and Chicago, the minimum wage goes up, effective Friday, July 1. The employer maintains a business facility in Cook County or is issued a business license by Cook County. Cook County. 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. A Harvard Business School study released in April examined San Francisco-area minimum wage hikes and their effect on restaurants in the Bay Area. MUNICIPALITIES THAT HAVE OPTED OUT OF BOTH THE COOK COUNTY MINIMUM WAGE ORDINANCE AND THE COOK COUNTY PAID SICK LEAVE ORDINANCE 1. (Ord. The increases in suburban Cook County will not apply to suburbs that opted-out of the Cook County Minimum Wage Ordinance. Click here to review Cook County's minimum wage law. Pursuant to the MWO (Sec. Effective January 1, 2023, the minimum wage for tipped workers increases to $7.80, in alignment with the Illinois State minimum wage. 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. 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. 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 black unemployment rate in Illinois is more than double the states jobless rate for white residents. Mandatory Cook County IL Labor Law Notices. Chicago passed a similar sick leave ordinance in 2016. Minimum wage hikes can stifle job creation and competitiveness, and raise consumer prices, A June 2017University 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 reduction of over $100 million per year in total payroll for such jobs after the citys wage hike. CBS 2 Tipped. In addition to the minimum wage increases July 1, Chicago businesses in. t 217.528.8800 f 312.212.5277 e info@illinoispolicy.org, Copyright 2023 Illinois Policy | Illinois' comeback story starts here. 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. 2023 CBS Broadcasting Inc. All Rights Reserved. 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. Cook County Government. 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. Instead, they must be paid the States minimum wage for workers under the age of 18. 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. In suburban Cook County, the minimum wage for non-tipped workers will increase to $13.35 an hour and $7.40 for tipped workers. The employer maintains a business facility in Cook County or is issued a business license by Cook County. 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. Bensenville 8. Minimum wage for tipped employees at large companies will be $9.24 and $8.70 for small companies. Minimum wages for Chicago and Cook County are increasing July 1. %%EOF Back to Index. Schaumburgs Woodfield Mall is a shopping destination with dozens of stores and eateries. $14.00. The minimum wage for non-tipped workers remains $13.35. Increases in minimum wages can drive some firms out of business entirely. $8.70 (effective July 1, 2022) Cook County $6.30 (current) $7.40 (effective July 1, 2022) Maryland: For Illinoisans, this presents an unpleasant tradeoff: continued high inflation or an increase in unemployment because of rising interest rates. $13.00. And minimum wage hikes canreduce job opportunitiesin minority communities. 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. Yen also told the Tribune that business owners would need to pass on the higher labor costs to the consumer through increased prices.. 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. Typically, workers should be paid the wage for the county where you work 50% or more of . Fair Workweek Ordinance In Chicago, enhancements to the Fair. These updated notices should also be posted with other legally-required posters. 42-13) and rules (Sec. and Terms of Service apply. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days' sick leave While the federal minimum wage is $7.25 per hour, and Illinois' statewide minimum wage is. 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. Gov. and Terms of Service apply. The minimum wage is $6.60 for tipped employees. 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 . In the event that the Cook County unemployment rate exceeds 8.5%, the minimum wage is set to the greater of the Federal or . Bedford Park 6. More than 50 of Cook Countys 132 municipalities have used their home rule authority to opt out of the countys wage hike and sick leave mandate, and the number of municipalities considering opting out continues to climb, according to WBEZ. June 1, 2022 / 6:19 PM Pursuant to the MWO (Sec. 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. Ordinance No. Barrington 4. 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. 802 South 2nd Street | Springfield, IL 62704 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. There are Skokie families for whom this will mean serious financial hardship. 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). Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. 42-13) and rules (Sec. CHICAGO - The minimum wage in Illinois is set to increase at the start of 2023. Check this list carefully to see if any of these labor posters are relevant to your business. Cook County ordinances raise minimum wage to $13 per hour, mandate up to 5 days sick leave. Teenagers (under the age of 18) are not entitled to the minimum wage. With the increases in the Chicago and Cook County minimum wage, the minimum wage paid to tipped employees will also increase. 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. Approximately 1.4 million Illinois residents earn the state's minimum wage. Cook's Minimum Wage Ordinance does not apply to the city of Chicago, which has its own Ordinance. 5 Although the county minimum wage exceeds the state rate, the state minimum cash wage (MCW . The wage hike is part of an ordinance passed by Chicago Mayor Lori Lightfoot in 2019. The Commission investigates complaints to determine if a violation of the Ordinance has occurred. 300 S. Riverside Plaza | 1650 | Chicago, IL 60606 Massachusetts laws 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. As of 2023, the living wage is $14.42/hr with employer-provided healthcare benefits, and $18.03/hrwithout. 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. Connecticut. 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 Countys minimum wage notice is here. If the municipality has not opted out, employees can file a complaint with the Cook County Human Rights Commission. After 2020, the county minimum wage will be subject to increases based on the CPI. CHICAGO MINIMUM WAGE AND PAID SICK LEAVE ORDINANCE. 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. Today, Cook County issued a notice to employees regarding the Minimum Wage Ordinance (MWO). Chicagos current minimum wage is $15 an hour for businesses with 21 or more employees and $14 for businesses with four to 20 employees. 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. $12.75 (60) $6.38 (30) $6.37 . $13.00 (No Change) $7.20 5 (60) $5.80 (-60) Maine. Any time worked in 2022 must reflect the new $12 an hour minimum wage. The minimum wage for employees in suburban Cook County will also increase on July 1st to $13.35 per hour.

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