Chicago minimum wage increase to $15-an-hour takes effect; Illinois rate remains $11-an-hour

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WLS-TV 01 July, 2021 - 12:19pm 20 views

When does minimum wage go up in Chicago?

Through Mayor Lightfoot's bold Chi Biz Strong Package, which passed City Council last week, this timeline has been further accelerated – all domestic workers, including those that work for small employers (under 20 employees), will receive a minimum wage of $15 an hour beginning on August 1, 2021. chicago.govMayor Lightfoot Celebrates Historic $15 Minimum Wage in Chicago

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Chicago's minimum wage rises to $15

Crain's Chicago Business 02 July, 2021 - 03:32am

Employees for small businesses in Chicago (4-20 employees) will earn $14 per hour starting today, and youth workers will earn $11. Tipped workers will see their base wage increase to $9 for large employers (up from $8.40) and to $8.40 for small employers (up from $8.10). The wage will now rise with inflation. 

Domestic workers, who currently earn $14 per hour (or $13.50 if they work for an employer with fewer than 21 employees), will see wages rise beginning Aug 1. The boost was included as part of the Chi Biz Strong ordinance that cleared the City Council last week. It's set generate “up to $28 million in additional income for roughly 8,000 domestic workers over the next two years,” the mayor’s office said in a release. Starting Jan. 1, 2022, domestic workers would be given the right to a written contract with their employer.

Starting July 31, the city’s first Wage Theft Law also goes into effect, granting the city’s Office of Labor Standards “greater authority to crack down on bad-faith employers that steal wages from their employees,” according to the release.

In 2020, that office received 102 complaints regarding the minimum wage and cited 48 businesses, with fines totaling $146,500, the city says.  

Chicago is hitting the wage benchmark four years earlier than the rest of Illinois. The state minimum wage is set to rise to $11 in January of 2022, eventually hitting $15 per hour by 2025. The change affects roughly 1.4 million workers across the state.

“Our dedicated workforce deserves to be protected and treated with dignity and respect— especially after the devastating socioeconomic fallout caused by the pandemic," Lightfoot said in the release. "With the implementation of this historic minimum wage ordinance and the Chi Biz Strong package, we will be able to uplift our most vulnerable workers and ensure that they are paid a living wage.”

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Minimum Hourly Wage in Chicago to Hit $15, Capping 6-Year Fight

WTTW News 02 July, 2021 - 03:32am

Chicago’s minimum wage will rise to $15 per hour Thursday, capping a six-year fight that energized the labor movement and fueled new laws designed to improve the working conditions for the city’s lowest-paid workers.

The $1 hike in the city’s minimum wage was signed into law by Mayor Lori Lightfoot as part of the city’s 2020 spending plan.

The minimum wage for employees of businesses with four to 20 workers will rise 50 cents per hour to $14 per hour, rising another dollar on July 1, 2023. Youth workers will see their minimum wage rise to $11 per hour. Approximately 400,000 Chicagoans will get a raise starting Thursday, city officials said.

The minimum hourly wage for employees of large Chicago businesses who earn tips will rise by 60 cents on Thursday to $9 per hour. The so-called tipped minimum wage has gone up $2 since 2019.

The state’s $10 per hour minimum wage is set to rise by $1 on Jan. 1, 2022, until it hits $15 per hour in 2025. Approximately 1.4 million Illinois residents earn the state’s minimum wage.

The minimum wage in Cook County outside of Chicago will remain at $13 per hour because the unemployment rate in 2020 was greater than 8.5%, officials said. The tipped minimum wage in Cook County rose to $6.60  on Jan. 1.

“The Cook County Minimum Wage Ordinance balances the needs of appropriate working wages with the needs of our local businesses for a fair compromise,” said Nick Mathiowdis, a spokesperson for Cook County Board President Toni Preckwinkle.

The federal minimum wage is $7.25 per hour, and efforts to hike it failed to pass the U.S. Senate earlier this year.

Chicago’s minimum wage will now rise automatically every July 1 to keep pace with the annual increase in the cost of living.

The city’s Progressive Caucus pushed Lightfoot to eliminate the tipped minimum wage as part of the city’s 2020 spending plan, but Lightfoot opposed the change, saying it could hurt small businesses.

However, city officials agreed to study the “economic impact of tipped wages and the effectiveness of current enforcement” in 2020. Delayed by the pandemic, that yearlong study will now start Thursday.

Under a deal signed by former Mayor Rahm Emanuel, the city’s hourly minimum wage rose from $8.25 to $13 in 2018. 

During the 2019 campaign for mayor, Lightfoot vowed to increase the city’s hourly minimum wage and has pointed to its rise as one of her proudest accomplishments.

The nationwide Fight For $15 movement, which was backed by the Chicago Federation of Labor, pushed the challenges facing Chicago’s lowest-paid workers — who are primarily Black and Latino — to the top of the agenda for city officials.

Led by former Ald. Ameya Pawar (47th Ward), the city began requiring employers to give their workers paid time off when they are ill in 2017, and the City Council approved a measure expanding that right earlier this month.

Chicago’s newly expanded worker protection laws will require employers to pay the city's approximately 8,000 domestic workers the city’s minimum wage starting Aug. 1, and requires that they get a written contract “to ensure the accountability, transparency and predictability that they need to plan for themselves and their families” by Jan. 1, 2022.

In addition, the new law is designed to prevent large corporations with more than one location from undercounting their employees to avoid paying the city’s minimum wage.

As part of the last budget from former Mayor Rahm Emanuel in 2019, he proposed creating the city’s Office of Labor Standards to enforce the city’s sick leave and minimum wage laws as well as the city’s so-called “fair work week” ordinance, which requires employers to give their workers two weeks’ notice of their schedules in an effort to reduce the stress caused by unpredictable shift work.

When the COVID-19 pandemic hit, the City Council charged the Office of Labor Standards with enforcing laws designed to protect employees from retaliation for quarantining or taking time off to get vaccinated.

The Office of Labor Standards received 728 complaints, opened 214 investigations, cited 50 employers, and levied $170,500 in fines in 2020 for non-compliance with the city’s worker protection laws, officials said.

Forty-eight employers cited by city officials violated the minimum wage law, triggering $146,500 in fines, officials said.

Chicago minimum wage rises to $15 starting Thursday

FOX 32 Chicago 02 July, 2021 - 03:32am

Some workers across the city may see a raise on Thursday.

Some workers across Chicago may see a raise on Thursday.

The city's minimum wage will increase to $15 per hour for companies with more than 20 employees.

The minimum wage will rise to $14 for companies with between four and 20 employees. Their pay rate will increase to $15 in 2023.

The city's minimum wage will go up every July 1 to match cost-of-living increases.

This material may not be published, broadcast, rewritten, or redistributed. ©2021 FOX Television Stations

Minimum wage increases take effect Thursday in Minneapolis, St. Paul

KARE11.com 02 July, 2021 - 03:28am

MINNEAPOLIS — Workers in the Twin Cities are receiving a slight wage increase Thursday. 

The minimum wage for all employees in the City of Minneapolis will be going up to at least $12.50 an hour and up to $14.25 for franchises or employers with over 100 employees. Separately, the City of St. Paul is raising their minimum wage to $12.50 for large businesses (100+ employees), $11.00 for small businesses (6-100 employees), and $10.00 for macro businesses (5 or fewer employees). Certain youth workers and youth trainees may be subject to a lower minimum wage rate in St. Paul. 

This small annual increase represents a bid by both cities to help get the overall minimum wage up to $15 by 2024 for Minneapolis and 2027 for St. Paul. Tips and gratuities will not count towards payment of the minimum wage. 

According to the wage schedule created by both cities, the next wage hike is scheduled for July 1, 2022.

Resources regarding the minimum wage increase for employers and employees in the City of Minneapolis can be found here and for the City of St. Paul here

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Minimum Wage Increase Kicks In Across Northridge-Chatsworth

Patch.com 01 July, 2021 - 08:18pm

LOS ANGELES, CA —Years in the making, a $15 minimum wage went into effect for small businesses in Northridge and Chatsworth Thursday.

Six years after the city approved a phased increase of the minimum wage, the lowest-paid workers citywide have seen their hourly wages grow by more than half from $9 to $15. The law, passed in 2015, applied to large companies first and, as of Thursday, to small businesses as well. From here on out, it will continue to increase with cost of living adjustments. At the time, Los Angeles became one of the largest cities nationwide to institute a $15 minimum wage.

"We can do right for our workers and do right for our businesses. We don't just tell businesses you got to up wages to $15 an hour, we're doing everything we can to help them," Mayor Eric Garcetti said, citing the city's grants to businesses struggling during the COVID-19 pandemic and the Al Fresco outdoor dining program that the city is working to make permanent.

The ordinance increased the minimum wage beginning July 2016, when it rose to $10.50 an hour for businesses with 26 or more employees. The city minimum wage went up to $12 an hour by July 2017, $13.25 per hour by July 2018, $14.25 per hour by July 2019 and ultimately to $15 by July 2020.

Businesses with 25 or fewer employees had to start raising their wages one year later and had until Thursday to reach the $15-an-hour mark.

Once the wage reaches $15 per hour for both small and large employers, the ordinance calls for the minimum wage in 2022 to continue increasing based on the cost of living.

"I grew up in a union household, the proud son of a Teamster. I know the importance of providing fair wages to working people," Councilman Mitch O'Farrell said Thursday. "I also know firsthand how important it is to protect and look out for our small businesses."

"Six years ago, the Los Angeles City Council led the way on a policy that is fair to workers and fair to businesses, and today, those efforts pay off in full. After the grueling pandemic and the toll it's taken on working Angelenos, the landmark $15 milestone could not come at a better time," he said.

David Huerta, president of the Service Employees International Union- United Service Workers West, said:

"Service workers are the backbone of our economy; $15 per hour is a major milestone, and it comes at a critical time for all the service employees who have worked so hard and served on the front lines during the COVID-19 pandemic. A fair wage is a necessary ingredient for workers to be treated with dignity, and Los Angeles should be commended for leading on this issue well before others."

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