Illinois Minimum Wage Increases: Everything You Need to Know

Illinois Minimum Wage Increases: Everything You Need to Know
Small business employers and their employees should be aware of the minimum wage requirements in Illinois.
by Square Oct 02, 2023 — 2 min read
Illinois Minimum Wage Increases: Everything You Need to Know

What is the minimum wage in Illinois for 2024?

The Illinois minimum wage is increasing to $14 per hour on Jan. 1, 2024 for non-tipped employees ages 18 and over. Minors (ages 18 and under) may be paid a minimum wage of $12.00 per hour. However, according to the Illinois minimum wage law, if your under-18 employee works more than 650 hours in a calendar year, they must be paid at the same rate as an employee who is 18 or over.

If you run a business with tipped employees, you may take credit for your employees’ tips; however, this amount may not exceed 40 percent of their wages. Effective Jan. 1, 2024, tipped employees may be paid a minimum wage of $8.40 if applying the tip credit during their first 90 days with an employer. Please keep in mind that the two local jurisdictions, specifically Chicago and Cook County, have a higher wage than the Illinois minimum wage.

As of July 1, 2023, the Chicago minimum wage increased to $15.00 per hour for employers with 4 to 20 workers. If you are an employer with 21 or more workers, you are required to pay $15.80 per hour. For tipped workers (such as restaurant servers) the Chicago minimum wage is $9.00 for employers with 4 to 20 workers and $9.48 for employers with 21 or more workers.

As of July 1, 2023, the Cook County minimum wage increased to $13.70 per hour. The base wage for tipped employees in Cook County increased from $7.40 to $8.00 per hour.

Is the Illinois minimum wage increasing beyond 2024?

The Illinois minimum wage is increasing from $13 to $14 per hour on Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. The tipped minimum wages will rise to $8.40 in 2024 and $9 in 2025.

How should small business owners prepare for changes that are being made?

Every business is different, so there isn’t one right way to prepare. Here are a few options you may want to consider:

As always, to make sure your business is prepared and stays in compliance (get your EIN for starters), we recommend that you discuss these upcoming changes to the Illinois minimum wage laws with your accountant and lawyer.

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