Effective January 1, 2020
Illinois Minimum Wage to Increase
Minimum wage workers in Illinois will be ringing in the new year with a $1-per-hour raise! This will be the first increase in minimum wage for Illinois since 2010. Gov. J.B. Pritzker signed a bill into law to raise the state’s minimum wage to $15 per hour by 2025. Under the new legislation, beginning January 1, 2020, the minimum wage will increase to $9.25 per hour from $8.25 per hour. July 1, 2020, an additional $0.75 increase will be effective bringing the new minimum wage to $10.00 per hour and will then increase by $1 per hour each January 1st until it reaches $15 per hour by 2025.
Illinois is the first Midwestern state to hike the minimum wage to that level. States on both coasts, including California, Massachusetts, and New Jersey have already moved to enact such a hike. California will hit that level in 2022, Massachusetts in 2023 and New Jersey in 2024.
Businesses should evaluate how a higher minimum wage will affect their bottom line and begin to plan accordingly. In an attempt to ease the burden on employers, Illinois is developing a tax credit to help specific small businesses. Full details on that credit are not currently available, but we will continue to monitor for a release.
If you have any questions or concerns, please don’t hesitate to contact us.