Illinois Senate Bill 1 which has already been approved by the Senate has now been approved by the Illinois House on February 14, 2019.  This bill raises the minimum wage to $15.00 by January 2025.

 

SENATE BILL 1

 

Wage-earners in Illinois currently receive at least $8.25 per hour. Senate Bill 1 would increase the minimum wage to:

 

• $9.25 per hour on January 1, 2020

• $10.00 per hour on July 1, 2020

• $11.00 per hour on January 1, 2021

• $12.00 per hour on January 1, 2022

• $13.00 per hour on January 1, 2023

• $14.00 per hour on January 1, 2024

• $15.00 per hour on and after January 1, 2025

 

The bill would also increase the minimum wage for individuals under the age of 18, going from $8.00 on January 1, 2020 to $13.00 on January 1, 2022.

 

Under Illinois law, workers who receive tips, like servers and delivery drivers, receive 60% of minimum wage and receive the rest in tips or are supplemented by their employer. This legislation will mean the tipped wage would increase to $9.00 per hour by 2025.

 

As of this Tax Alert, Senate Bill 1 is still awaiting the Illinois governor’s signature.  Paylocity will continue to monitor this bill and post an update to this alert once it is available.

 

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.