Illinois will elevate its minimal wage by $1 on Wednesday to $15 per hour, becoming a member of greater than 20 states rising minimal hourly wages in 2025.
The minimal wage for tipped staff resembling restaurant servers will enhance from $8.40 to $9 per hour, and staff beneath age 18 might be paid $13 per hour, up from $12.
The transfer marks the seventh and remaining hike of the state’s minimal wage, as a part of laws Gov. JB Pritzker signed in 2019 that scheduled will increase from $9.25 per hour in 2020 to $15 in 2025.
“Since day one in all my administration, I’ve made it my mission to construct an economic system that works for everybody, and elevating the minimal wage to $15 an hour fulfills that promise to our working households,” Pritzker mentioned in a December assertion. “This enhance honors the employees who energy our state and ensures they will higher assist their households, bringing us nearer to a stronger, extra equitable economic system for all.”
On July 1, Chicago raised its minimal wage to $16.20 per hour from $15.80 for employers with 4 or extra staff. The town will increase its minimal wage yearly primarily based on the Shopper Worth Index or by 2.5%, whichever is decrease. It additionally raised the tipped hourly minimal wage from $9.48 to $11.02 in July.
The Illinois Restaurant Affiliation and a few Chicago restaurant house owners, in addition to servers, have mentioned the town’s new tipped minimal wage charge hurts them and warned that eateries will not be absolutely recovered from the COVID-19 pandemic.
They contend eating places must elevate menu costs as their labor prices enhance, particularly amid ongoing struggles with inflation. Subsequently, prospects will tip much less if meals costs go up, and if servers’ base pay is raised, they mentioned. Restaurant house owners may additionally downsize waitstaff or shift to counter service to chop prices.
The federal minimal wage has stayed at $7.25 per hour since July 24, 2009, — the longest interval in historical past with no elevate, in response to the nationwide coalition Enterprise for a Honest Minimal Wage. The group, citing the U.S. Bureau of Labor Statistics inflation calculator, mentioned buying energy has “eroded drastically” since peaking in 1968 when the minimal wage was price $14.76 in 2024 {dollars}.
Some enterprise house owners say the next minimal wage boosts their enterprise.
“Elevating the minimal wage helps economies thrive. We spend money on our workers, and the return on that funding is big,” Mike Draper, proprietor of Raygun, mentioned in a information launch. The Des Moines, Iowa-based clothes and decor firm operates a retailer in Andersonville.
“We welcome the minimal wage will increase beginning off the 12 months in Illinois, New York and Virginia in addition to D.C.’s annual enhance in July,” Aaron Seyedian, proprietor of Nicely-Paid Maids, mentioned in a information launch.
The honest wage house cleansing firm launched in Chicago in September — its first Midwest enlargement past the Washington, D.C., space and New York.
“Our low worker turnover saves us some huge cash and time on hiring and coaching. And we’re glad to report one other 12 months of file income for our enterprise,” he mentioned.
Fifteen states, together with Washington, D.C., now have a minimal wage of $15 or larger, or are scheduled to part that pay charge in. They’re Alaska, California, Connecticut, Delaware, Florida, Hawaii, Illinois, Maryland, Massachusetts, Missouri, Nebraska, New Jersey, New York, Rhode Island and Washington. Washington has the very best state minimal wage at $16.66, as of Wednesday.
Many cities and counties may also enhance their minimal wage in 2025. Earlier than 2012, solely 5 localities had minimal wage legal guidelines; at present, 64 counties and cities do, in response to the College of California Berkeley Labor Heart. However a number of native minimal wage ordinances have been overturned, together with in Miami; Birmingham, Alabama; and Louisville and Lexington, Kentucky.
