The Illinois minimum wage increased from $12.00 an hour to $13.00 an hour on January 1, 2023. This is the fifth increase in the Illinois minimum wage since 2019. The states minimum wage is set to increase to $14.00 an hour in 2024 and $15.00 an hour in 2025.
The minimum wage for workers who regularly earn tips will increase to $7.80 an hour beginning January 1, 2023. These employees must earn the required minimum wage after receiving tips. Employers are required to pay the difference if there is a deficit on the employee’s side. Employees under the age of 18 who work fewer than 650 hours a year are entitled to a minimum wage of $10.50 an hour beginning January 1, 2023.
All Illinois employers are required to post the “Your Rights Under Illinois Employment Laws” with up-to-date information. This information must be posted in plain sight where employees regularly congregate.
Chicago & Cook County Minimum Wage Rates
Please Note: Both Chicago and Cook County have different minimum wage rates in comparison to the rest of the state of Illinois.
Chicago
- In Chicago, the current 2023 minimum wage for non-tipped workers is $15.40 an hour for businesses that employ 21 or more workers, and $14.50 an hour for businesses that employ 4 – 20 employees.
- The current minimum wage for tipped workers is $9.24 an hour for businesses that employ 21 or more workers, and $8.70 for businesses that employ 4 – 20 employees. Should the employee make less in tips than the applicable minimum wage, then the employer must make up the difference.
Cook County
- In Cook County, the current 2023 minimum wage is $13.35 an hour for non-tipped workers, and $7.40 an hour for tipped workers.
- The minimum wage ordinance does not apply to employees under the age of 18 years. The Illinois Minimum Wage Act does require teenage workers to be paid a minimum wage of $10.50 per hour with annual increases.
If you are an employer within the Chicago city limits, you should be reviewing your current payroll setup to verify you are complying with the city guidelines regarding these new minimum wage requirements. In general, with the increase, if you are not already paying your employees above the new minimum wage requirements, you can expect to see your payroll costs immediately rise in accordance with these changes.
