State Minimum Wage First Increase is January 1, 2020

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.

About Author

Lindsay Wagahoff, MA

Ms. Wagahoff previously held the position of Director of Governmental Relations with the ICS. In addition to her Masters in Political Science, Lindsay has served on staff with the Office of the House Republican Leader as a legislative analyst. Also, she staffed the Human Services Committee (which handles Medicaid), as well as, the appropriations committee for Human Services. Prior to serving in this capacity, Lindsay was the Executive Director of the Montgomery County Economic Development Corporation, and brings a full understanding of member relations. Her friendly and bright demeanor and tenacious attitude allowed the Illinois Chiropractic Society to maintain positive health care relationships and advance the chiropractic profession both at the Capitol and with regulatory bodies. Please contact Ben Schwarm with questions related to Government Relations.

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