Illinois’ new minimum wage law will take effect on January 1, 2020. Beginning at the start of the new year, Illinois employers must pay a minimum wage of $9.25 per hour which is a one dollar increase over the currently required wage. Six months later on July 1, Illinois’ minimum wage increases to $10.00 per hour representing an additional 75 cent per hour increase.
- January 1, 2020: The minimum wage increases from $8.25 to $9.25 per hour
- July 1, 2020: The minimum wage increases from $9.25 per hour to $10.00 per hour.
Please note that the Governor and General Assembly did not include any regional cost differences so this new wage structure impacts the entire state.
The new law does include a tax credit for small employers (50 or fewer full time employees) that will be able to claim a tax credit equal to 25 percent of the increased wages paid between January 1, 2020, and December 31, 2020, for those employees working 90 or more consecutive days.
The IMA is providing this information to ensure that manufacturers are in compliance with the new law set to take effect on January 1.