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Illinois Minimum Wage Increases January 1

In 2019, Governor JB Pritzker signed into law Public Act 101-0001 that gradually increased Illinois’ minimum wage starting in January 2020 and running through January 2025, as the state works its way to a $15.00 per hour minimum wage. Below is a chart of scheduled increases.

Effective DateNon-Tipped EmployeesTipped EmployeesYouths
January 1, 2020$9.25$5.55$8.00
July 1, 2020$10.00$6.00$8.00
January 1, 2021$11.00$6.60$8.50
January 1, 2022$12.00$7.20$9.25
January 1, 2023$13.00$7.80$10.50
January 1, 2024$14.00$8.40$12.00
January 1, 2025$15.00$9.00$13.00

As the chart references, on January 1, 2021, the statewide minimum wage will increase to $11.00 per hour for adults and $8.50 per hour for youths, which are defined as individuals under the age of 18.

MHA members should note that youth wage does come with some exceptions. Any individual under the age of 18 that works more than 650 hours for an employer in a given year is required to be paid the normal (full) minimum wage.

For example, if an employer hires a worker under the age of 18 on April 30, 2020, the window of time to calculate the 650-hour limit runs through April 30, 2021. If that worker reaches 650 hours on April 15, 2021, they must be paid the regular, full minimum wage going forward. Assuming the employer continues to employ that worker after April 30, 2021 that worker would continue to receive the full minimum wage.

Once a worker reaches the 650-hour threshold with an employer in a twelve-month period, the employer should pay the worker no less than the full minimum wage paid to those 18 years of age absent any other exemptions that could apply.

Also, new employees of any age in training may be paid up to $.50 an hour below the minimum wage for their first 90 days of employment. After that, an employee must be paid at least the full minimum wage (for anyone 18 years of age or older) or the youth wage (for those under 18 years of age.)

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12/16/20
MHA Annual Meeting Cancelled
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12/16/20
Illinois Minimum Wage Increases January 1
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12/16/20
Small Businesses May Face Tax Surprise With Forgiven PPP Loans
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