By Payroll and Entitlements Editorial Staff
The Governor of Illinois has approved S.B. 1 on February 19, making Illinois the first state in the Midwest to phase in a $15 minimum wage over the next six years.
S.B. 1 gradually increases the minimum wage to $15 by January 2025 as follows:
- $9.25 per hour on January 1, 2020
- $10 per hour on July 1, 2020
- $11 per hour on January 1, 2021
- $12 per hour on January 1, 2022
- $13 per hour on January 1, 2023
- $14 per hour on January 1, 2024
- $15 per hour on and after January 1, 2025
Illinois’ current minimum wage is $8.25 per hour. A single parent working a full-time minimum-wage job qualifies for food stamps, Medicaid and often housing assistance. A $15 per hour minimum wage would lessen single parents’ and families’ reliance on assistance.
The measure also increases the hourly minimum wage for individuals under the age of 18 but at a slower pace, going from $8 on January 1, 2020 to $13 on January 1, 2022.
Under Illinois law, workers who receive tips, like servers and delivery drivers, receive 60 percent of minimum wage and receive the rest in tips or are supplemented by their employer. That dynamic will mean the tipped wage would increase to $9 per hour by 2025.
The law also provides for the Department of Labor to adopt emergency rules to implement the changes in the minimum wage law.
In addition, the law provides for random audits of employers in any industry subject to the law and would also increase penalties for violations of minimum wage and recordkeeping requirements. (Public Act No. 1 (S.B. 1) Laws 2019, approved February 19, 2019, and effective as noted above; State of Illinois, Office of the Governor, News Release, February 19, 2019.)
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