Reminder: Minimum Wage Increases in Illinois and Several Midwest Cities

June 24, 2020
Publication
Inside HR
Wage & Hour
Read time: 3 mins

There are several minimum wage increases taking place on July 1, 2020. The following is a summary of each of the changes:

State of Illinois. The hourly minimum wage will incrementally increase until reaching $15 on January 1, 2025. Below is the full schedule:

  • July 1, 2020, to $10
  • January 1, 2021, to $11
  • January 1, 2022, to $12
  • January 1, 2023, to $13
  • January 1, 2024, to $14
  • January 1, 2025, to $15

Cook County, IL. The minimum wage rate is scheduled to increase annually to $13 per hour by July 1, 2020, and adjust for inflation thereafter. Many municipalities within Cook County “opted out” of the minimum wage ordinance when it was first enacted. A few have decided to opt back in. For the most up-to-date information on which municipalities within Cook County have opted out of the minimum wage ordinance, call or consult your city or village’s website to verify specific obligations.

Chicago, IL. Beginning July 1, 2020, and every July 1 thereafter, the Chicago minimum wage will be tied to a cost-of-living adjustment but will be capped at a 2.5% increase. On July 1, 2020, for covered employees with four to 20 employees, the minimum wage is $13.50. For covered employers with 21 or more employees, the minimum wage is $14. See notice for more information. Covered employers are responsible for posting notice of the wage increases in their business facilities and on their employees’ first paycheck when the wage increases go into effect.

Minneapolis, MN. Employers based in Minneapolis, or employers who regularly send employees to Minneapolis to work, have stepped phases of minimum wage increases planned through 2024. The most recent increase to $11.75 for small employers (100 or fewer employees) and $13.25 for large employers (more than 100 employees) is effective July 1, 2020. Resources and FAQs can be found here

St. Paul, MN. The phase-in period length for employers is dependent on business size, as determined by numbers of employees.

  • For city of St. Paul businesses with more than 100 workers, the minimum wage will increase to $11.50 on July 1, 2020, with several other incremental, annual increases until reaching $15 on July 1, 2024.
  • Employers with between five and 100 employees must raise their minimum wage to $10 on July 1, 2020, and eventually to $15 on July 1, 2026.
  • Employers with fewer than five employees, must pay a minimum wage of $9.25 by July 1, 2020, and pay $15 by July 1, 2027.
  • For businesses with more than 10,000 employees, the minimum wage already increased to $12.50 on January 1, 2020, and will jump to $15 on July 1, 2022.
  • And once the minimum wage reaches $15, it will be adjusted every year for inflation.

Notice Requirements. Covered employers are required to post and provide notice of the current minimum wages and rights in a conspicuous place where employees can easily see them. As a reminder, MRA has a partnership with GovDocs, a reputable and cost-effective provider of state and federal consolidated employment law posters, so members can receive a 10 percent discount off the regular price of employment law posters and any other products. Employers enrolled in the GovDocs program will receive notification whenever updates are made to compliance posters, such as minimum wage increases.

Source: Lynell Meeth, Director, HR and Content Strategy, MRA – The Management Association; CCH/Wolters Kluwer