On July 1, 2010 the Illinois minimum wage will increase by 25 cents, from $8.00 to $8.25 per hour. The law applies to employers with 4 or more workers, excluding family members. The federal minimum wage of $7.25 per hour applies to employers with 3 or fewer workers. By law, any employee covered by both the federal and Illinois minimum wage laws must be paid the higher rate.
Several exceptions to the law permit an Illinois employer to pay some workers less than the state minimum wage, usually an “optional rate” that is 50 cents per hour less. Youths under the age of 18 can be paid just $7.75 beginning July 1, 2010. Employees over the age of 18 can be paid $7.75 during the first 90 days of employment, as a “training wage.”
The new minimum wage for tipped employees is $4.95 per hour, an increase of 15 cents from the previous rate of $4.80 per hour. If the tipped employee does not average $8.25 per hour in tips and wages over the payroll week, the employer must pay the difference. A tipped employee under the age of 18, or in the first 90 days of employment, can be paid (more…)
The Nevada minimum wage increases today from $6.85 per hour to $7.55 per hour, although a number of Nevada employers are exempted.
The highest minimum wage is currently in the state of Washington, with a minimum wage of $8.55 per hour. The Oregon minimum wage is $8.40 per hour, while the minimum wage in Vermont is $8.06 per hour. The minimum wage in California, Connecticut and Massachusetts is at $8.00 per hour – the same as the Illinois minimum wage, effective today.
The minimum wages in Washington, Oregon and Vermont are adjusted for inflation annually on January 1. The minimum wage in California, Connecticut and Massachusetts are not adjusted annually for inflation – they are changed only by statute.
Many employers complain that this puts the Illinois minimum wage the highest in the nation – but they are very wrong. In fact, the new rate puts Illinois in a four-way tie for the fourth highest minimum wage, with California, Massachusetts, and Connecticut.
The nation’s highest minimum wage is in Washington, at $8.55 per hour. The second highest minimum wage is in Oregon, at $8.40 per hour. The Vermont minimum wage is currently $8.06 per hour. All three of those states – unlike Illinois – have annual cost-of-living increases.
In 2010, the Illinois rate goes up another 25 cents an hour, bringing it to $8.25.
In 2003, the minimum wage in Illinois went from $5.15 to $5.50 an hour, (more…)
In Illinois, the state minimum wage increased 25 cents from $7.50 to $7.75 per hour. This is the second step in a 3-tiered increase. The state minimum wage will increase again in 2009. The law applies to any employer with 4 or more workers who are not family members. More details here.
Michigan’s minimum wage also increased 25 cents per hour from $7.15 to $7.40. The state minimum wage has risen nearly $2.00 since 2005, despite sluggish job growth, problems for the automotive industry and the loss of a number of major employers. The law applies to employers with 2 or more workers. More details here.
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 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.
Director of the Illinois Department of Labor, Art Ludwig commented. “We remain committed to protecting the rights and wages of workers in Illinois.”