Illinois residents saw the first increase in the minimum wage in a decade on January 1st. Governor J.B. Pritzker signed the new minimum wage law last February, providing a path to a $15 minimum wage by 2025. Minimum wage earners received an increase of a dollar to $9.25 an hour on January1st, which will be followed by an increase to $10 an hour on July 1st. The minimum wage will then increase an additional dollar per hour each January 1st until it reaches $15 an hour in 2025.
More than 1.4 million adult hourly workers in Illinois currently make less than $15 per hour, according to the Illinois Economic Policy Institute at the University of Illinois. Illinois Department of Labor Director Michael Kleinik reminds workers to check their pay stubs to ensure their pay is accurate. “We expect compliance with all employers regarding the minimum wage, but we just want to remind workers they may want to check their paycheck just to make sure they have received the new minimum wage. If they have some work that was done in 2019, it would still fall under the prior minimum wage of $8.25 [per hour]. Any work done in 2020 is when the new minimum wage of $9.25 kicks in.”
The new law also effects employees who receive tips as part of wages. Tipped employees may be paid 60% of the minimum wage. However, tip earners must still earn at least the minimum wage after receiving tips. Juvenile workers and those who work less than 650 hours annually will earn a minimum wage of $8 an hour under the new law, up a quarter per hour. The youth minimum wage will gradually increase to $13 per hour by January 1st, 2025.