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By State, Illinois, Payroll

Chicago News: Minimum Wage Increased

I’ll take 10!

$10 per hour that is!  Up until June 30th, 2015, employees received a of $8.25 per hour and if there are employers that comply with federal minimum wage laws, then, their employees made $7.25 per hour.  Beginning, July 1st, 2015, and every year thereafter (until further notice) there will be a minimum wage increase!  This did not cater to the “I want $15 per hour!” chant that ran across the streets of Chicago, but hey, it has progressed from the $8.25 per hour Chicago residents are used to getting.

Money falling on a business womanAs mentioned, the minimum wage has hiked up to $10 per hour – that’s a nice $1.75  increase! But, that’s not where it ends.

On July 1, 2016, the minimum wage will increase to $10.50 per hour

On July 1, 2017, the minimum wage will increase to $11.00 per hour

On July 1, 2018, the minimum wage will go up a whole dollar → $12.00 per hour

And on July 1, 2019, the minimum wage will go up to $13.00 per hour

According to Phillip M. Schreiber and Adam R. Young of Holland and Knight as well as the Chicago Department of Business Affairs and Consumer Protection, it is to be noted that all covered employees (lawful employees who work for someone or an organization and are compensated) who work within Chicago for at least 2 hours in any two-week period must be paid the new minimum wage stated above that has been issued by the city’s ordinance (city’s law).

Does this affect just the city of Chicago or does it affect the entire state of Illinois?  The resounding answer is both.  If employers do not comply with this new minimum wage change, there will be a fine of $500 to maybe even $1000 for EACH offense.   Illinois employers must make quick and effective changes to their employment policies and place these minimum wage rates into effect pronto.

Now, we can’t forget employees – usually waiters and/or waitresses – who usually rely on tip to make their living.  Their minimum wage was $4.95 per hour, but will get a 50-cent increase to $5.45 per hour plus tips.   It may seem like chump change, but if you ask me, Chicago takes the cake within the Midwest.  There are still other states whose tipped employees only make $2 per hour plus tips.

Until Next Time, Be Audit-Secure!

Lisa Smith

About LISA SMITH

Lisa Smith is CEO of Andere Seminars, LLC and Chief Content Developer at BeAuditSecure.com. Follow her on Twitter, connect with her on LinkedIn, listen to her Small Business Spoonfuls Podcast, and find more from her in Audit-Secure Authority at BeAuditSecure.com.

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