ILLINOIS – The Illinois Department of Labor issued a reminder to workers that their minimum wage will increase New Years Day and they should be sure the new rate is on their paychecks in 2021.
The Illinois minimum wage will be $11 beginning Friday as part of Governor JB Pritzkers legislation into law in 2019 of providing a path to a $15 minimum wage by 2025.
Minimum wage earners already received two increases in 2020 to $9.25 an hour on Jan. 1 followed by an increase to $10 an hour on July 1.
Workers who are under 18 years old and work fewer than 650 hours in a year will earn a minimum wage of $8.50 per hour beginning Jan. 1.
The youth minimum wage rate will gradually rise to $13 an hour by 2025.
The new law also tells employers to count gratuities to offset wages for workers such as food servers who regularly earn tips.
Tipped employees may be paid 60 percent of the hourly minimum wage. These workers must still earn the minimum wage after receiving tips or the employer must make up the difference.
The current city of Chicago minimum wage is $13.50 an hour for small employers (4 to 20 employees) and $14 an hour for large employers (21 or more employees).
The minimum wage will continue to increase an additional $1 an hour each on Jan. 1 until it reaches $15 an hour in 2025.