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Minimum wage increase in Illinois: What you should know

On Behalf of | Jan 13, 2022 | Wage & Hour Laws

As an Illinois worker, you have the right to fair compensation for the hours you have worked. Minimum wage is a base rate or the lowest amount an employer can legally pay an employee. According to the Fair Labor Standards Act, employers that meet the requirements must pay the current Federal minimum wage unless the state minimum wage is higher.

Some states, including Illinois, have set a minimum wage that is higher than the federal rate. Approximately 1.4 million adult hourly employees in the state make less than $15 an hour. As an hourly employee, it is important to know what minimum wage is and how overtime is paid to ensure you receive all that you are entitled to.

Minimum wage rising

According to NBC Chicago, Illinois raised the minimum wage to $12 per hour and will continue to increase the rate on January 1st of every year until the maximum rate of $15 per hour by 2025. Many states increase the minimum wage rate to assist citizens with an increased cost of living.

Employees who work less than 650 hours a year and are under the age of 18 will receive a minimum hourly wage of $9.25. That wage will also increase to a maximum of $13 by 2025.

Overtime and tipped employees

Employees who receive tips as part of their paycheck will also see an increase in wages. Employers can pay a base rate of up to 60% of the minimum wage. Workers’ tips must equal out to at least minimum wage or the employer must make up the difference.

In Illinois, workers who work more than 40 hours a week must receive one and a half times their hourly wages.

Employees are encouraged to keep a close eye on their paycheck to ensure they receive the proper wages for the time they have worked.