Illinois Minimum Wage Increase Signed

By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services
Published February 19, 2019

As we previously reported, Governor Pritzker has made it a top priority to raise Illinois’ minimum wage, and today that became a reality.  

During a ceremony this morning at the Governor’s Mansion in Springfield, Governor Pritzker officially signed a bill to increase Illinois minimum wage. As a result, an estimated 1.4 million Illinois residents will see their pay increase.

The minimum wage will first increase from $8.25 to $9.25 per hour on January 1, 2020.  The minimum wage will increase again to $10.00 per hour on July 1, 2020, and will then go up $1.00 per hour each year on January 1, until it reaches $15.00 per hour in 2025.

In an effort to help employers offset some of the costs associated with the minimum wage increase, tax credits will be available to organizations with 50 or fewer employees. Employers will be able to claim a tax credit for 25% of the cost in 2020, and the credit will scale back annually, then eventually phase out.

The law also sets a lower minimum wage for tipped workers and employees under age 18 who work less than 650 hours in a year. 

At this time, employers should determine how many employees’ pay rates are affected by the minimum wage increase and calculate the total financial impact of any necessary adjustments. 

HR Source’s compensation experts are available to answer questions on this topic and can provide compensation services to members needing structure adjustments and assistance with short-term and long-term compliance plans. Contact us at (800)448-4584 or  Also, keep an eye out for future minimum wage compliance articles, briefings, and webinars provided by HR Source.


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