Tag Archives: Cook County Minimum Wage Ordinance

July 1, 2021 Increase to Chicago Minimum Wage….But No Change to Cook County Minimum Wage Despite Written Notices

Contributed By Michael Wong and Sara Zorich, June 25, 2021

It’s that time of year (again) for increases in minimum wage. However, this year is slightly different! In spite of the Cook County written notices that some employers may have received, the Cook County Minimum Wage for non-tipped employees is NOT increasing, as the unemployment rate for Cook County during the prior year was greater than 8.5%. However, the Cook County Minimum wage for tipped employees will increase on July 1st  from $6.00 to $6.60 to match the increase under Illinois law. For City of Chicago employers, the minimum wage for both tipped and non-tipped employees will increase on July 1st. To provide a full picture, the following chart shows the minimum wage for Illinois employers as of July 1, 2021:  

*    Increases to match the State minimum wage for tipped employees of $6.60.

** The employer size requirements are modified for small employers of Domestic Workers to $14.00/hr for (0-20 employees) but large employers remain 21+. Thus, any employee working as a Domestic Worker is eligible for the Chicago minimum wage

*** City of Chicago contracts and concessionaire agreements: $14.15 for non-tipped employees and $7.65 for tipped employees.

As a reminder, many municipalities in Cook County opted-out of the Cook County Minimum Wage and/or Paid Sick Leave ordinances. If your business is in Cook County (but not the City of Chicago), you must check whether or not the municipality that you are in opted-out and whether they opted out of both or only one.

REMINDERS:

2020 Change to Definition of Covered “Employer” Under Chicago Minimum Wage and Paid Sick Leave –

On July 1, 2020, the 2019 Amendment to the Chicago Minimum Wage and Paid Sick Leave ordinance, went into effect expanding what employers are covered. The new definition deleted the requirement that an employer have a business facility within the geographic boundaries of the City and/or be subject to license requirements. After July 1, 2020, the Chicago Minimum Wage and Paid Sick Leave ordinances defined an employer as any “person who gainfully employees at least one employee.”

Under this change, it can be interpreted that any employer who has an employee who performs at least two (2) hours of work within the geographic boundaries of the City, during any particular two-week period, must pay that employee the Chicago minimum wage for the time spent working within the City of Chicago and record the amount of paid sick leave accrued by that employee for the time spent working in the City!

As an example of the impact of this is the following scenario: a Colorado business sends its non-exempt employee to New York. The employee’s flight has a 2 ½ hour layover at O’Hare (O’Hare and Midway are both within the geographic boundaries of the City of Chicago). Technically under Chicago’s Paid Sick leave ordinance, the Colorado business would have to record the amount of paid sick leave that the employee accrued during the 2 ½ hours that the employee was “working” in Chicago and would be required to pay the Chicago minimum wage of $15.00/hr for the hours the employee was “working” in Chicago.

Any employer who has employees going into the City of Chicago, MUST review and understand their obligations and whether they are currently subject to the Chicago Minimum Wage and Paid Sick leave ordinances.

Chicago Paid Sick Leave Covers Employees in Outside Sales, Members of Religious Organizations, Student Employees of Accredited Illinois Colleges and Universities subject to the FLSA and DOT covered Motor Carriers

The 2019 Amendment to the Chicago Paid Sick Leave Ordinance also made changes to the definition of covered employees. In particular, the amendment specifically states employees covered by the Chicago Paid Sick Leave ordinance (but not the Chicago Paid Minimum Wage) include employees who work in outside sales, for a religious corporation or organization, are a student-employee of an Illinois college or university covered by the Fair Labor Standards Act, or are an employee of a motor carrier covered by the Department of Transportation.

This means that employees who work in outside sales, for a religious corporation or organization, are a student-employee of an Illinois college or university covered by the Fair Labor Standard Act, or are an employee of a motor carrier covered by the Department of Transportation, should be eligible to accrue up to 40 hours of paid sick leave each year under the Chicago Paid Sick Leave ordinance. As the Chicago Paid Sick Leave ordinance has specific requirements regarding accrual rate, carryover, caps, permitted uses, restrictions on use, requesting supporting documentation from employees, and employee notice, it is recommended that you contact experienced employment counsel regarding drafting a policy or questions about compliance.

Remember to Update Your Posters AND Provide written notices to Employees –  

Under the Chicago’s rules, employers have to post the most up to date minimum wage and paid sick leave posters and provide written notices to covered employees each year with the first paycheck after July 1st, whether by paper or electronic means. The City of Chicago posters for Chicago minimum wage and paid sick leave can be found on the City of Chicago webpages for Minimum Wage and Paid Sick Leave in English, Spanish, Polish, Chinese, Filipino and Korean.

Additionally, the Cook County website has posters for Minimum Wage and Sick Leave, but only in English.

The State of Illinois also has its Minimum Wage poster on its website in English or Spanish.

Employers who are unsure whether they must comply, what they must do to comply or are concerned about their policies complying should contact experienced employment counsel to mitigate exposures and minimize risk.

REMINDER/IMPORTANT WARNING: July 1 Minimum Wage Increases in Illinois, Cook County and the City of Chicago…and Major Expansion of What Employers are Covered by Chicago’s Minimum Wage and Paid Sick Leave Ordinance

Contributed by Michael Wong and Sara Zorich, June 26, 2020

It’s that time of year and even a pandemic will not stop Illinois, Cook County and the City of Chicago from increasing their minimum wages on July 1, 2020 as follows:

Non-Tipped EmployeesTipped Employees
(Claiming the Tip Credit)
Illinois (all employers)$10.00 per hour$6.00 per hour
Cook County (employers in
municipalities that did not opt-out)
$13.00 per hour$6.00 per hour*
*Technically, the Cook County Minimum Wage Ordinance for tipped employees only increases to $5.30. However, since that is less than the new State minimum wage for tipped employees of $6.00, following the Cook County Minimum Wage Ordinance for tipped employees would be a violation of the Illinois Minimum Wage Law.

The July 1 change for the City of Chicago includes significant changes and new nuances that employers must be aware of, including different wage rates based on number and age of employees.

Large Employers
(21 or more employees)
Small Employers
(4 to 21 Employees; and Employers with 0 to 21 Domestic Workers)
Youth Workers
(Under 18, subsidized temporary youth employment program or transitional employment program)
Chicago$14.00 per hour$13.50 per hour$10.00 per hour
(same as State Min Wage)
Tipped Workers (Claiming the Tip Credit):Large EmployersSmall EmployersYouth Employers
Chicago$8.40 per hour$8.10$6.00
O’Hare and Midway Airport Certified Service Providers: $14.15 for non-tipped employees and $7.65 for tipped employees.

WARNING MAJOR CHANGES

However, the biggest change that employers must take note of does NOT pertain to the wage rate, but WHO will be subject to the City of Chicago’s Minimum Wage and Paid Sick Leave Ordinances. The Amendment to the Chicago Minimum Wage and Paid Sick Leave ordinance passed on November 11, 2019, redefines and expands what employers are covered. Currently, only employers who (1) maintain a business facility within the geographic boundaries of the city and/or (2) are subject to one or more of the City’s license requirements in Title 4 of the Chicago Code are subject to Chicago’s minimum wage and paid sick leave ordinances.

Chicago Minimum Wage

The City’s revisions that go into effect July 1 delete the requirement that an employer must have a business facility within the geographic boundaries of the City and/or be subject to the City’s license requirements to be covered. After July 1, the new definition for employer in the Chicago Minimum Wage and Paid Sick Leave ordinances will be “a person who gainfully employees at least one employee.”

Under this change, it can be interpreted that any employer who has an employee who performs at least two (2) hours of work within the geographic boundaries of the City, during any particular two-week period, must pay that employee the Chicago minimum wage for the time spent working within the City of Chicago.

Chicago Paid Sick Leave

Furthermore, the Chicago Paid Sick Leave ordinance uses the SAME definition for “Employer” as the Chicago Minimum Wage ordinance. This means that ANY employer who has ANY employee perform at least two (2) hours of work within the geographic boundaries of the City, during any particular two-week period, must document and record the amount of paid sick leave accrued by that employee for the time spent working in the City!

As an example of the potentially drastic nature of this change is this scenario: a Texas business sends its non-exempt employee to New York. The employee’s flight has a 2 ½ hour layover at O’Hare (O’Hare and Midway are both within the geographic boundaries of the City of Chicago). Technically under Chicago’s Paid Sick leave ordinance, the Texas business would have to record the amount of paid sick leave that the employee accrued during the 2 ½ hours that the employee was “working” in Chicago.

Any employer who has employees going into the City of Chicago, now MUST review and understand their obligations and whether they are subject to the Chicago Minimum Wage and Paid Sick leave ordinances after July 1.

Posters

For employers that are subject to the Cook County or Chicago minimum wage and paid sick leave ordinances, you will need to get the most up-to-date required poster, which can be found on the City of Chicago webpages for Minimum Wage and Paid Sick Leave in English or Spanish. Additionally, under Chicago’s new rules, employers will have to provide written notice each year with the first paycheck after July 1, whether by paper or electronic means.

The Cook County website has posters for Minimum Wage and Sick Leave that are only in English. Illinois has not updated its minimum wage poster (yet).

Employers that are unsure whether they must comply, what they must do to comply or that fail to implement compliant policies, including tracking sick leave accrual or carryover, should discuss options with employment counsel to mitigate exposure and minimize risk.

REMINDER: Cook County and Chicago Minimum Wage Increased on July 1, 2018…And So Did the Required Poster!

Contributed by Mike Wong, July 27, 2018

WageOn July 1, 2018, the Chicago Minimum Wage and Cook County Minimum Wages increased as follows:

  • Chicago Minimum Wage increased to $12.00 per hour for non-tipped employees and $6.25 for tipped employees (Chicago Municipal Code §1-24).
  • Cook County’s new minimum wage is $11.00 per hour for non-tipped and $5.10 for tipped employees.

IMPORTANT: Even if you are in a municipality that opted out of the Cook County or Chicago minimum wage or paid sick leave ordinances initially, remember to stay up to date as sometimes things can change.  For example, after opting out of the Cook County Minimum Wage ordinance in 2017, the Wilmette Village Board recently voted to opt in to the Cook County Minimum Wage starting October 1, 2018.  The village of Northbrook opted out of the Cook County Minimum Wage and Paid Sick Leave ordinance, but is now reconsidering the decision to opt out of the Paid Sick Leave ordinance.

IMPORTANT NOTICE REQUIREMENTS: With the increase of the minimum wage, the required posters have been updated to reflect the increase.  Employers that are subject to the Cook County or Chicago minimum wage should review and make sure that they have the current required poster posted.  The new poster for the Chicago Minimum Wage ordinance can be found on the City of Chicago website and are in English, Spanish, Polish and Mandarin. The Cook County minimum wage ordinance poster can be found on the Cook County website and is only in English.

 

Cook County Board Passes Minimum Wage Ordinance

Contributed by Noah A. Frank, Sara S. Zorich, and Michael D. Wong, November 1, 2016

On October 25, 2016, the Cook County Minimum Wage Ordinance (CCMWO) became immediately effective, on the heels of the county’s Paid Sick Leave Ordinance. The CCMWO provides the following significant requirements:

  1. minimum-wage-changesCovered Employees are those who work at least two (2) hours in any particular two (2) week period physically within the county’s geographic boundaries, including compensated travel time for business activities.
  2. Covered Employers include individuals who employ at least one Covered Employee AND (1) maintain a business facility within the county’s geographic boundaries and/or (2) are subject to one (or more) county business license. Home-rule municipalities may choose to opt-out of the Ordinance within their geographic boundaries. Municipalities and other federal, state, and local governmental employers (other than Cook County) are excluded from the Ordinance.
  3. The Cook County Minimum Wage increases on 7/1/2017 to $10.00, and then: $11.00 on 7/1/2018; $12.00 on 7/1/2019; and $13.00 on 7/1/2020. It increases annually thereafter by the CPI, up to 2.5%.
  4. Tipped Employees wages increase by the CPI (up to 2.5%) as of 7/1/2018, and annually thereafter. Employers must submit reports to the Director evidencing that no part of the tips were returned to the employer – establishing another, independent cause of action against employers who fail to properly maintain tips and tip pooling arrangements.
  5. There is no grandfathering, exemption, or safe harbor for currently “in force” CBAs! They will be subject to these new provisions upon their effective date. We anticipate that there will be substantial controversy over this in heavily unionized Cook County.
  6. Posting & Notice. Employers with a physical location in Cook County must post a notice (poster to be prepared by the Director) at each facility within the county, and must provide a notice to each covered employee with the first paycheck subject to the CCMWO and any newly hired employee.
  7. Retaliation and discrimination are prohibited, specifically including punitive schedule or work assignment changes to covered employees and harassment.
  8. Penalties include (i) fines of $500-$1000 per violation per day, enforced by the Cook County Commission on Human Rights; (ii) government contractor disqualification for five (5) years; and (iii) loss of property tax incentives for five (5) years.
  9. Private causes of action exist, with the ability to recover three (3) times the amount of any underpayment, costs, and reasonable attorney fees.

The Bottom Line:

Local minimum wage ordinances are popping up across the United States. As a result, employers must now, more than ever, pay attention to local laws which might also dictate where the company operates and conducts business.

For example, in addition to the CCMWO, employers must also comply with the Chicago Minimum Wage Ordinance for work performed within the City’s geographic boundaries (see our prior blog posts for more information). Note: the minimum wage increases under the Cook County and Chicago ordinances are NOT on the same schedule and thus employers must be aware of which law applies to the work being performed.

Today, in addition to planning for the impending US Department of Labor increase to the salary level for exempt employees (effective 12/1/16), employers with employees working in or traveling through Cook County should start planning for wage increases now, and review CBAs as well. Experienced labor and employment counsel are able to provide advice on best practices.