State Minimum Wage First Increase is January 1, 2020

During the 2019 spring legislative session, legislation was passed to increase the State’s minimum wage to $15/hour by 2025. Under the law, the minimum wage will have an annual step increases over the next five years. By 2025, the law will fully be implemented.  For details regarding Chicago and Cook County refer to the Cook County and City of Chicago Minimum Wage Increases Effective July 1, 2018 article.

The first increase begins on January 1, 2020.  This means that payroll will need to be updated to reflect the increase.

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The increased minimum wage will vary based upon the age of the employee. For employees over the age of 18, regardless of the number of hours worked, the minimum wage increase will apply as follows:

January 1, 2020: $9.25/hour
July 1, 2020: $10/hour
January 1, 2021: $11/hour
January 1, 2022: $12/hour
January 1, 2023: $13/hour
January 1, 2024: $14/hour
January 1, 2025: $15/hour

For employees under the age of 18 and who have NOT worked more than 650 hours in a calendar year, the minimum wage increase will apply as follows:

January 1, 2020: $8/hour
January 1, 2021: $8.50/hour
January 1, 2022: $9.25/hour
January 1, 2023: $10.50/hour
January 1, 2024: $12/hour
January 1, 2025: $13/hour

If an employee is under the age of 18 but HAS worked more than 650 hours in a year, an employer is required to pay the same minimum wage for individuals who are over 18 years of age.

There are some potential payroll tax credits that were implemented as part of the minimum wage increase. Chiropractic physicians should seek additional advice from their tax professionals to learn who may qualify for those tax credits.