State Minimum Wage Increases Again July 1, 2020

State Minimum Wage Increases Again July 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 stepped increases over the next five years. By 2025, the law will fully be implemented. The first increase occurred on January 1, 2020.

The next increase begins on July 1, 2020. Please review your payroll to ensure you are meeting this minimum requirement.

The increased minimum wage will vary based upon the age of the employee. For employees over the age of 18, regardless of number 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

Lindsay joined the ICS in 2017 as our Director of Governmental Relations. 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 allows the Illinois Chiropractic Society to maintain positive health care relationships and advance the chiropractic profession both at the Capitol and with regulatory bodies.

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