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Important points about new minimum wage laws in Illinois for 2021

On Behalf of | Dec 24, 2020 | Wage & Hour Laws

Wage concerns are an ongoing problem on Chicago, throughout Illinois and across the nation. This is true even with the continuing health crisis. With the fervent hope that there is finally light at the end of the tunnel and a return to relative normalcy may come about in 2021, it is important to be vigilant about how minimum wage laws will be updated with the dawn of a new year. There will be an increase in the minimum wage in Chicago and Illinois. People in various industries who are subject to it should understand the details and be cognizant of how much they are supposed to receive. If there are problems with their wages, they should also be aware of how to ensure they are paid according to the law.

Facts about minimum wage increases in 2021

There were two increases in minimum wages in 2020. In January, it rose to $9.25 and in July, it increased to $10. In 2021, Illinois workers will automatically receive a raise in the minimum wage from $10 to $11. For those who are categorized as tipped workers, it will increase from $6 per hour to $6.60 per hour. This is another step in an incremental increase in wages that by 2025 will result in a $15 per hour minimum wage and $9 for workers who are tipped employees.

Chicago has slightly different minimum wage laws than the rest of Illinois as small employers are required to pay $13.50 per hour; large employers pay $14. Small employers are defined as those that employ between four and 20 employees. Large employers employ 21 or more. With the new law, a tipped employee is required to receive 60% of the minimum wage per hour. If they do not reach the minimum wage after their tips have been calculated, the employer is legally obligated to make up the difference. Workers under 18 will receive $8.50 per hour if they work less than 650 hours during the year.

Legal assistance can be essential when seeking minimum wage payments

Although employers are expected to adhere to the city and state laws regarding paying their employees proper wages, many do not do so. Regardless of the situation, workers have rights. They should not be afraid of repercussions for demanding to receive the wages they are entitled to. If the employer refuses to follow the law, the employee can seek legal assistance from a firm that specializes in wage and hour laws. Calling for a consultation is key.