A new law which was set to go into effect on January 1st hikes the minimum wage up from $12 to $13 an hour making the state average one dollar higher than the previous year.
For all workers who earn tips, the minimum wage rate is increasing to $7.80 but, the state says the workers must still earn this amount after receiving tips, or employers are said to make up the difference. Anyone under 18 who works fewer than 650 hours a year will earn $10.50 per hour.
This annual increase is part of a rise set to continue through to 2025 with plans for a $15 minimum wage to take effect by then. A law providing a path to increase Illinois’ minimum wage to $15 per hour and $9 for tipped workers initially went into effect in 2019 and since that legislation was officially signed, there have been four different increases in the minimum wage.
But, Cook County and the City of Chicago each have their own minimum wage ordinance— and as of right now, both sit higher than the overall state’s current rate.
The minimum wage in Cook County rose from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped workers this past July with the Chicago minimum wage for non-tipped workers going from $15 to $15.40 for large businesses employing 21 or more workers and for $14.50 for smaller businesses.
As for tipped workers, they will see the minimum wage rates increase to $9.24 in large employment situations, and $8.70 for any smaller businesses.
The Illinois Economic Policy Institute at the University of Illinois conducted a study in 2020 that found more than 1.4 million adult hourly workers in Illinois make less than $15 per hour. Hopefully, that is set to change.