LABOR LAW NEWS

Illinois Passes New $15 Minimum Wage Law

By Kelsey Basten

Published on April 16, 2019

Illinois Enacts Sweeping New Laws Related to #MeToo Movement

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On Feb. 14, 2019, Illinois Governor J.B. Pritzker signed into law an amendment to the Illinois Minimum Wage Law. This is the first statewide minimum wage increase in Illinois since 2010.

Increase Schedule

Currently, the state minimum wage is set at $8.25, and will increase as follows:

  • Jan. 1, 2020: $9.25
  • Jul. 1, 2020: $10.00
  • Jan. 1, 2021: $11.00
  • Jan. 1, 2022: $12.00
  • Jan. 1, 2023: $13.00
  • Jan. 1, 2024: $14.00
  • Jan. 1, 2025: $15.00

Tipped Employees

The new amendment does not change the current tipped wage law. The law states that tipped employees may not receive any reduction in pay that exceeds 40 percent if the tips add up to supplement the remaining amount of wages.

For example, in 2025, if you pay an employee a minimum wage of $9.00 (60 percent of the minimum wage), you would be able to do so if the tips add at least an additional $6.00 to meet the state’s minimum wage.

Enforcement and Penalties

Under the amendment, the Illinois Department of Labor has the right to conduct random audits to ensure compliance.

If an employer is found non-compliant, they are subject to treble damages (three times the damages) and attorney fees. Also, non-compliant employers are liable to pay 5 percent of the amount of any underpayments for each month following the date of payment.

This Labor Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.

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