Illinois House Approves Senate Bill 1 to Increase Minimum Wage
February 21, 2019
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 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 on January 1, 2020 to $13 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.
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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.
