labor lawAdivision of labor law center

On July 1, 2008, over 650,000 Illinois workers will see a 25 cent increase in the minimum wage from $7.50 to 7.75 per hour.

This increase is the second step in a multi-year program signed into law in 2006 by Illinois Governor Rod Blagojevich. This law set up a 25 cent per hour increase each year from 2007 to 2010, resulting in a minimum wage of $8.25 per hour in 2010.

These increases are the second set of raises for the minimum wage under the tenure of Governor Blagojevich. In 2003, he raised the Illinois minimum wage from $5.15 to 5.50 per hour. In 2004, the minimum was raised another dollar to $6.50 per hour. Effective July 1, 2008, the minimum wage will have been increased in that four year period by $2.60 per hour.

Each of the current increases will take place on July 1, the first taking place on July 1, 2007, the last on July 1, 2010.

In 2007, Governor Blagojevich stated, “A person who works 40 hours a week should earn enough to care for their family and afford basic necessities. I’m proud that in Illinois, we’ve kept our promise to help working people and make their lives easier after years of neglect at the federal level. It will be a little easier for thousands of Illinois families to pay their bills, put food on the table or buy clothes for their kids.”

Governor Blagojevich also said, “Workers deserve a fair wage for their hard work, and they deserve a wage that keeps up with the increasing cost of living.”

The new law will increase the Illinois minimum wage for tipped workers to $4.65 per hour. Employers can pay a training wage of $7.25 per hour to these workers during the first 90 days of employment.

The minimum wage law in Illinois also allows employers to pay their under age 18 workers a lower wage. On July 1, 2008, that rate will go from $7.00 per hour to $7.25 per hour, and the minimum for tipped workers under age 18 will be $4.35 per hour.

Two Illinois Democrats from Chicago, Senator Miguel del Valle and State Representative William Delgado, sponsored Illinois law SB2339, which was signed into legislations by Governor Blagojevich. This law gives the Illinois Department of Labor (IDOL) increased power by creating better provisions for penalties and for enforcement of the state minimum wage laws.

Representative Delgado said, “I would like to thank Governor Blagojevich for signing this legislation, and for his consistency in helping working families get ahead. Thanks to laws like this, Illinois is a leader when it comes to helping working men and women seek employment with decent wages.”

Prior to enactment of SB2339, the IDOL had no effective methods to sanction businesses that refused to pay workers, or delayed a worker’s paycheck.

According to Illinois law, employers are mandated to pay workers at least two times per month, within 14 days after the end of the pay period. The law also states the when employees are terminated they should be paid by the next regularly scheduled pay day.

Prior to SB 2339, when employers ignored the law, the IDOL and employees had no way to assess penalties for the back pay, even for money recovered from a private lawsuit.

Under SB2339, employees can collect a penalty of 2% per month on recovered back pay. In addition, IDOL can collect penalties under the Wage and Payment and Collection Act of 1% per calendar day from companies that refuse to pay earned wages or final pay to workers.

To investigate employers that don’t pay workers their wages, SB 2339 authorizes the Director of Labor to subpoena the company’s relevant evidence, including books, payroll, and other records. The law also gives the IDOL authorization to assess penalties for violations of minimum wage and overtimes laws. When a company’s acts of violations are found to be willful, repeated, or display a reckless disregard for the law, the IDOL can impose a penalty of up to 20%.

Director of the Illinois Department of Labor, Art Ludwig commented. “We remain committed to protecting the rights and wages of workers in Illinois.”

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