Minimum Wage Bill Increases Wages Gradually Over Next Five Years
With his signature on February 19, 2019, Governor Pritzker made a new minimum wage bill, (known as the "Lifting Up Illinois Working Families Act,") Public Act 101-1, law. The new law requires employers to do the following:
1. From January 1, 2020 through June 30, 2020, every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $9.25 per hour; and
2. From July 1, 2020 through December 31, 2020 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $10per hour; and
3. From January 1, 2021 through December 31, 2021 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $11 per hour; and
4. From January 1, 2022 through December 31, 2022 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $12 per hour; and
5. From January 1, 2023 through December 31, 2023 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $13 per hour; and
6. From January 1, 2024 through December 31, 2024, every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $14 per hour; and
7. On and after January 1, 2025, every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $15 per hour.
The Act provides a new penalty for employers who fail to keep a payroll record, at a penalty of $100 per impacted employee. In addition, damages for underpayment of wages are now as high as triple the amount of underpayment, plus a 5% damages assessment (up from 2%) and $1500 fine.
While some of the fines are new or increased, nothing in the new law changes the law's long-standing requirement to keep an adequate and accurate record reflecting hours worked by staff. Although it may be tempting for employers to shift the burden of such record-keeping to the employee by way of implementing a time-clock, time card, or other new employment requirements, employers must be mindful of the fact that changing a term and condition of employment (such as clocking in and clocking out) may require bargaining upon demand of the collective bargaining agent. Employers should remember that the burden of keeping and producing accurate records befalls upon the employer and not the employee.