Illinois Minimum Wage laws & HR compliance analysis

Illinois Minimum Wage: What you need to know

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The Lifting Up Illinois Working Families Act, which amends the Illinois Minimum Wage Law (IMWL)raises the state’s minimum wage incrementally to $15 per hour by January 1, 2025, beginning in 2020. In addition to increasing the minimum wage, the amendment imposes stiffer penalties for employers that violate the minimum wage rules. The same minimum wage increases apply to employees under the age of 18 who work more than 650 hours for an employer during any calendar year. Employees under the age of 18 who have not worked more than 650 hours in a calendar year will be entitled to a lower minimum wage.
Employers with 50 or fewer employees may be able to claim certain tax credits to help offset the cost of the wage increase. Employers will not be able to claim the tax credit if their total wages for employees earning less than $55,000 per year decreased when compared to the same period in the previous year.
The cost of not complying with the IMWL is considerable, because the amendments impose stiff penalties for violations of the rules. Under the amended IMWL, employees who are not paid correctly (whether it’s the minimum wage or overtime pay) may recover triple the amount of the underpayment plus 5% of the amount of the underpayment for each month the underpayment remains unpaid. Additionally, the amendments now authorize the Illinois Department of Labor (IDOL) to conduct random audits of employers to ensure compliance with the law. The IDOL also may recover penalties for each affected employee if an employer fails to maintain proper payroll records, and an employer who does not comply with the law could be ...

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Illinois Minimum Wage Resources

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