The minimum wage in Illinois will increase to $15 an hour on January 1, 2024, completing a six-year transition period that began when the increase was approved in 2019. Starting New Year’s Day, Illinois workers earning minimum wage will see their hourly pay rise by $1, while tipped workers will receive a wage bump to $9 an hour. Additionally, youth workers under the age of 18 who work fewer than 650 hours a year will have a minimum wage of $13.
This final increase concludes a gradual rise that started with a wage increase from $8.25 to $9.25 on January 1, 2020. The increase marks a significant legislative victory for Governor JB Pritzker, who signed the wage hike into law in February 2019, just a month after taking office, fulfilling a key campaign promise.
“Since day one of my administration, I’ve made it my mission to build an economy that works for everyone, and raising the minimum wage to $15 an hour fulfills that promise to our working families,” Pritzker stated. “This increase honors the workers who power our state and ensures they can better support their families, bringing us closer to a stronger, more equitable economy for all.”
With this increase, Illinois will join nine other states with a minimum wage of $15 or more, according to the National Employment Law Project. Additionally, twenty-two other states are also raising their wages on January 1.
The minimum wage increase is part of broader economic changes that have occurred since 2019, including the impacts of the pandemic. Lou Sandoval, CEO of the Illinois Chamber of Commerce, mentioned that businesses have adjusted their operations in various ways, such as increasing automation. “You’re starting to see businesses pivot in terms of their adjustments,” Sandoval noted, with some restaurants shifting from large sit-down areas to grab-and-go formats.
Job growth in Illinois has been slow since October 2019, with a November report from the Commission on Government Forecasting and Accountability indicating a net increase of 28,700 jobs from October 2019 to October 2024. This represents a growth rate of 0.5%, compared to the national rate of 4.9%. The rate of new job postings by businesses at the beginning of the year will provide insights into how the increase to $15 on January 1 will affect business operations, Sandoval said.
To assist small businesses with this transition, the state offers a tax credit through 2027 for businesses with 50 or fewer employees for wages paid to minimum-wage workers.
The 2019 minimum wage law marked the first increase since the wage was set at $8.25 in 2010. Senate Majority Leader Kimberly Lightford, D-Westchester, initially introduced a bill to raise the minimum wage to $15 an hour in 2017. Although this proposal was passed by the General Assembly, it was vetoed by Republican Governor Bruce Rauner. Lightford sponsored the initiative again in 2019.
“As a state, we have helped countless workers make ends meet, reduce financial stress, and provide a more solid foundation for their futures,” Lightford said in a statement. “The $15 minimum wage is a testament to our commitment to economic justice and our belief that everyone who works full time deserves a living wage.”
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