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Illinois Minimum Wage is increasing January 1

Illinois Minimum Wage is increasing January 1

Effective January 1, 2023, the minimum wage in Illinois will increase for tipped and non-tipped employees.

The Illinois minimum wage will increase to $13 for non-tipped workers. Minimum wage for tipped workers will increase to $7.80; however, according to a recent press release they must still earn the minimum wage after receiving tips, or the employer is required to make up the difference.

Also, effective January 1, workers under 18 who work fewer than 650 hours a year will earn a minimum wage of $10.50 per hour.

Keep in mind that there are some exceptions to Illinois state minimum wage laws —

  • Cook County minimum wage is currently $13.35 for non-tipped workers and $7.40 for tipped workers, and the city of Chicago minimum wage is $15.40.
According to Cook County's Minimum Wage Ordinance, minimum wage in the County is based on the greatest rate among the Federal minimum wage, Illinois State minimum wage, or on the County’s calculation using the Consumer Price Index (CPI). The ordinance applies to hourly, salaried, and tipped employees over the age of 18 working in Cook County and those who may be working within the County to make deliveries or driving within County limits.
  • The city of Chicago has its own Ordinance: minimum wage is $15.40 for employers with 21 or more employees and $14.50 for smaller employers. Minimum wage for tipped employees at large companies is currently $9.24 and $8.70 for small companies.

See below for a table of Minimum Wage increases for the state of Illinois.

Minimum Wage Chart-1

For questions about whether you’re paying your employees appropriately, it’s recommended that you consult with your accountant or an experienced payroll provider.

 

Kaizen CPAs works with auto repair shops across the country. We know running a successful shop takes more than keeping the bays full. We help shop owners understand their numbers, stay ahead of taxes, and build stronger, more profitable businesses. Auto repair is at the heart of what we do, but we bring the same practical, hands-on approach to businesses in other industries, too.

YPD HCM is part of the Kaizen CPAs family. YPD HCM helps small businesses manage payroll, HR, and compliance with the right tools and personal, human support—from payroll and tax filings to onboarding, employee management, and more. It’s practical help for the people side of your business, from a team that’s there when you need them.

The information in this article is provided for general educational purposes and reflects conditions as of the publication date. It is not legal, tax, accounting, payroll, HR, or compliance advice. Every business is different, so talk with a qualified professional about your specific situation.

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