HB5367 104TH GENERAL ASSEMBLY

LRB104 19736 SPS 33186 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5367

Introduced 2/10/2026, by Rep. Norma Hernandez

SYNOPSIS AS INTRODUCED:

730 ILCS 5/3-9-2	from Ch. 38, par. 1003-9-2
730 ILCS 5/3-12-5	from Ch. 38, par. 1003-12-5
730 ILCS 5/3-13-5	from Ch. 38, par. 1003-13-5
820 ILCS 105/3	from Ch. 48, par. 1003
820 ILCS 105/4	from Ch. 48, par. 1004
820 ILCS 105/4b new
820 ILCS 105/7.5 new

Amends the he Unified Code of Corrections. Provides that the wages paid to committed persons shall not be less than the minimum hourly wage set forth in the Minimum Wage Law. Amends the Minimum Wage Law. Provides for increases in the minimum hourly wage through January 1, 2032. Provides that, on and after July 1, 2026, every employer shall pay to each of his or her employees who is under 18 years of age no less than the applicable minimum hourly wage. Provides that, on and after January 1, 2030, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum hourly wage. Provides that beginning on January 1, 2033, and on every January 1 thereafter, the minimum hourly wage from the previous year shall be increased in proportion to the increase in the consumer price index-u. Provides that the Department of Labor shall inquire into any alleged violations of this Act brought to its attention by an interested party. Sets forth the procedure for complaints brought by interested parties. Defines "interested party". Effective immediately.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Unified Code of Corrections is amended by changing Sections 3-9-2, 3-12-5, and 3-13-5 as follows:

(730 ILCS 5/3-9-2) (from Ch. 38, par. 1003-9-2)

Sec. 3-9-2. Work Training Programs.

(a) The Department of Juvenile Justice, in conjunction with the private sector, may establish and offer work training to develop work habits and equip persons committed to it with marketable skills to aid in their community placement upon release. Committed persons participating in this program shall be paid wages similar to those of comparable jobs in the surrounding community. The wages paid under this Section shall not be less than the minimum hourly wage set forth in Section 4 of the Minimum Wage Law. A portion of the wages earned shall go to the Department of Juvenile Justice to pay part of the committed person's room and board, a portion shall be deposited into the Violent Crime Victim's Assistance Fund to assist victims of crime, and the remainder shall be placed into a savings account for the committed person which shall be given to the committed person upon release. The Department shall promulgate rules to regulate the distribution of the wages earned.

(b) The Department of Juvenile Justice may establish programs of incentive by achievement, participation in which shall be on a voluntary basis, to sell goods or services to the public with the net earnings distributed to the program participants subject to rules of the Department of Juvenile Justice.

(c) For the purposes of this Section, "work" includes any task assigned to a committed person for which a wage would have been due, except for his or her status as a committed person.

(Source: P.A. 94-696, eff. 6-1-06.)

(730 ILCS 5/3-12-5) (from Ch. 38, par. 1003-12-5)

Sec. 3-12-5. Compensation. Persons performing a work assignment under subsection (a) of Section 3-12-2 shall may receive wages under rules and regulations of the Department. In determining rates of compensation, the Department shall consider the effort, skill and economic value of the work performed. The compensation paid under this Section shall not be less than the minimum hourly wage set forth in Section 4 of the Minimum Wage Law. Compensation shall may be given to persons who participate in other programs of the Department. If the committed person files a lawsuit determined frivolous under Article XXII of the Code of Civil Procedure, 50% of the compensation shall be used to offset the filing fees and costs of the lawsuit as provided in that Article until all fees and costs are paid in full. All other wages shall be deposited in the individual's account under rules and regulations of the Department. For the purposes of this Section, "work" includes any task assigned to a committed person for which a wage would have been due, except for his or her status as a committed person.

(Source: P.A. 101-235, eff. 1-1-20.)

(730 ILCS 5/3-13-5) (from Ch. 38, par. 1003-13-5)

Sec. 3-13-5. Wages and Working Conditions.

A person on work release shall not be required to work for less than the prevailing wage or under worse than prevailing working conditions in the area. The wages paid under this Section shall not be less than the minimum hourly wage set forth in Section 4 of the Minimum Wage Law. The Department shall charge businesses reasonable hourly rates for meals and the housing of committed persons on work release, if applicable. For the purposes of this Section, "work" includes any task assigned to a committed person for which a wage would have been due, except for his or her status as a committed person.

(Source: P.A. 77-2097.)

Section 10. The Minimum Wage Law is amended by changing Sections 3 and 4 and by adding Sections 4b and 7.5 as follows:

(820 ILCS 105/3) (from Ch. 48, par. 1003)

Sec. 3. As used in this Act:

(a) "Director" means the Director of the Department of Labor, and "Department" means the Department of Labor.

(b) "Wages" means compensation due to an employee by reason of his employment, including allowances determined by the Director in accordance with the provisions of this Act for gratuities and, when furnished by the employer, for meals and lodging actually used by the employee.

(c) "Employer" includes any individual, partnership, association, corporation, limited liability company, business trust, governmental or quasi-governmental body, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee, for which one or more persons are gainfully employed on some day within a calendar year. An employer is subject to this Act in a calendar year on and after the first day in such calendar year in which he employs one or more persons, and for the following calendar year.

(d) "Employee" includes any individual permitted to work by an employer in an occupation, and includes, notwithstanding subdivision (1) of this subsection (d), one or more domestic workers as defined in Section 10 of the Domestic Workers' Bill of Rights Act, but does not include any individual permitted to work:

(1) For an employer employing fewer than 4 employees exclusive of the employer's parent, spouse or child or other members of his immediate family.

(2) As an employee employed in agriculture or aquaculture (A) if such employee is employed by an employer who did not, during any calendar quarter during the preceding calendar year, use more than 500 man-days of agricultural or aquacultural labor, (B) if such employee is the parent, spouse or child, or other member of the employer's immediate family, (C) if such employee (i) is employed as a hand harvest laborer and is paid on a piece rate basis in an operation which has been, and is customarily and generally recognized as having been, paid on a piece rate basis in the region of employment, (ii) commutes daily from his permanent residence to the farm on which he is so employed, and (iii) has been employed in agriculture less than 13 weeks during the preceding calendar year, (D) if such employee (other than an employee described in clause (C) of this subparagraph): (i) is 16 years of age or under and is employed as a hand harvest laborer, is paid on a piece rate basis in an operation which has been, and is customarily and generally recognized as having been, paid on a piece rate basis in the region of employment, (ii) is employed on the same farm as his parent or person standing in the place of his parent, and (iii) is paid at the same piece rate as employees over 16 are paid on the same farm.

(3) (Blank).

(4) As an outside salesman.

(5) As a member of a religious corporation or organization.

(6) At an accredited Illinois college or university employed by the college or university at which he is a student who is covered under the provisions of the Fair Labor Standards Act of 1938, as heretofore or hereafter amended.

(7) For a motor carrier and with respect to whom the U.S. Secretary of Transportation has the power to establish qualifications and maximum hours of service under the provisions of Title 49 U.S.C. or the State of Illinois under Section 18b-105 (Title 92 of the Illinois Administrative Code, Part 395 - Hours of Service of Drivers) of the Illinois Vehicle Code.

(8) As an employee employed as a player who is 28 years old or younger, a manager, a coach, or an athletic trainer by a minor league professional baseball team not affiliated with a major league baseball club, if (A) the minor league professional baseball team does not operate for more than 7 months in any calendar year or (B) during the preceding calendar year, the minor league professional baseball team's average receipts for any 6-month period of the year were not more than 33 1/3% of its average receipts for the other 6 months of the year.

The above exclusions from the term "employee" may be further defined by regulations of the Director.

(e) "Occupation" means an industry, trade, business or class of work in which employees are gainfully employed.

(f) "Gratuities" means voluntary monetary contributions to an employee from a guest, patron or customer in connection with services rendered.

(g) "Outside salesman" means an employee regularly engaged in making sales or obtaining orders or contracts for services where a major portion of such duties are performed away from his employer's place of business.

(h) "Day camp" means a seasonal recreation program in operation for no more than 16 weeks intermittently throughout the calendar year, accommodating for profit or under philanthropic or charitable auspices, 5 or more children under 18 years of age, not including overnight programs. The term "day camp" does not include a "day care agency", "child care facility" or "foster family home" as licensed by the Illinois Department of Children and Family Services.

(i) "Interested party" means an organization that monitors or is attentive to compliance with public or worker safety laws, wage and hour requirements, or other statutory requirements.

(Source: P.A. 99-758, eff. 1-1-17; 100-192, eff. 8-18-17.)

(820 ILCS 105/4) (from Ch. 48, par. 1004)

Sec. 4. (a)(1) Every employer shall pay to each of his employees in every occupation wages of not less than $2.30 per hour or in the case of employees under 18 years of age wages of not less than $1.95 per hour, except as provided in Sections 5 and 6 of this Act, and on and after January 1, 1984, every employer shall pay to each of his employees in every occupation wages of not less than $2.65 per hour or in the case of employees under 18 years of age wages of not less than $2.25 per hour, and on and after October 1, 1984 every employer shall pay to each of his employees in every occupation wages of not less than $3.00 per hour or in the case of employees under 18 years of age wages of not less than $2.55 per hour, and on or after July 1, 1985 every employer shall pay to each of his employees in every occupation wages of not less than $3.35 per hour or in the case of employees under 18 years of age wages of not less than $2.85 per hour, and from January 1, 2004 through December 31, 2004 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 $5.50 per hour, and from January 1, 2005 through June 30, 2007 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 $6.50 per hour, and from July 1, 2007 through June 30, 2008 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 $7.50 per hour, and from July 1, 2008 through June 30, 2009 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 $7.75 per hour, and from July 1, 2009 through June 30, 2010 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 $8.00 per hour, and from July 1, 2010 through December 31, 2019 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 $8.25 per hour, and 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 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 $10 per hour, and 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 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 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 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 from on and after January 1, 2025 through June 30, 2026, 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; and from July 1, 2026 through December 31, 2027, every employer shall pay to each of his or her employees in every occupation wages of not less than $17 per hour; and from January 1, 2028 through December 31, 2028, every employer shall pay to each of his or her employees in every occupation wages of not less than $19 per hour; and from January 1, 2029 through December 31, 2029, every employer shall pay to each of his or her employees in every occupation wages of not less than $21 per hour; and from January 1, 2030 through December 31, 2030, every employer shall pay to each of his or her employees in every occupation wages of not less than $23 per hour; and from January 1, 2031 through December 31, 2031, every employer shall pay each of his or her employees in every occupation wages of not less than $25 per hour; and on and after January 1, 2032, every employer shall pay to each of his or her employees in every occupation wages of not less than $27 per hour, except as provided in Section 4b.

(2) Unless an employee's wages are reduced under Section 6, then in lieu of the rate prescribed in item (1) of this subsection (a), an employer may pay an employee who is 18 years of age or older, during the first 90 consecutive calendar days after the employee is initially employed by the employer, a wage that is not more than 50¢ less than the wage prescribed in item (1) of this subsection (a); however, an employer shall pay not less than the rate prescribed in item (1) of this subsection (a) to:

(A) a day or temporary laborer, as defined in Section 5 of the Day and Temporary Labor Services Act, who is 18 years of age or older; and

(B) an employee who is 18 years of age or older and whose employment is occasional or irregular and requires not more than 90 days to complete.

(3) At no time on or before December 31, 2019 shall the wages paid to any employee under 18 years of age be more than 50¢ less than the wage required to be paid to employees who are at least 18 years of age under item (1) of this subsection (a). Beginning on January 1, 2020, every employer shall pay to each of his or her employees who is under 18 years of age that has worked more than 650 hours for the employer during any calendar year a wage not less than the wage required for employees who are 18 years of age or older under paragraph (1) of subsection (a) of Section 4 of this Act. Every employer shall pay to each of his or her employees who is under 18 years of age that has not worked more than 650 hours for the employer during any calendar year: (1) $8 per hour from January 1, 2020 through December 31, 2020; (2) $8.50 per hour from January 1, 2021 through December 31, 2021; (3) $9.25 per hour from January 1, 2022 through December 31, 2022; (4) $10.50 per hour from January 1, 2023 through December 31, 2023; (5) $12 per hour from January 1, 2024 through December 31, 2024; and (6) $13 per hour from on and after January 1, 2025 through June 30, 2026; and (7) on and after July 1, 2026, every employer shall pay to each of his or her employees who is under 18 years of age no less than the minimum hourly wage set forth in subsection (a) of Section 4, regardless of an employee's age or the number of hours worked.

(b) No employer shall discriminate between employees on the basis of sex or mental or physical disability, except as otherwise provided in this Act by paying wages to employees at a rate less than the rate at which he pays wages to employees for the same or substantially similar work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to (1) a seniority system; (2) a merit system; (3) a system which measures earnings by quantity or quality of production; or (4) a differential based on any other factor other than sex or mental or physical disability, except as otherwise provided in this Act.

(c) Every employer of an employee engaged in an occupation in which gratuities have customarily and usually constituted and have been recognized as part of the remuneration for hire purposes is entitled to an allowance for gratuities as part of the hourly wage rate provided in Section 4, subsection (a) in an amount that follows: not to exceed 40% of the applicable minimum wage rate through June 30, 2026; not to exceed 30% of the applicable minimum wage rate from July 1, 2026 through December 31, 2027; not to exceed 20% of the applicable minimum wage rate from January 1, 2028 through December 31, 2028; and not to exceed 10% of the applicable minimum wage rate from January 1, 2029 through December 31, 2029. On and after January 1, 2030, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate provided in subsection (a) of Section 4. The Director shall require each employer desiring an allowance for gratuities to provide substantial evidence that the amount claimed, which may not exceed 40% of the applicable minimum wage rate, was received by the employee in the period for which the claim of exemption is made, and no part thereof was returned to the employer.

(d) No camp counselor who resides on the premises of a seasonal camp of an organized not-for-profit corporation shall be subject to the adult minimum wage if the camp counselor (1) works 40 or more hours per week, and (2) receives a total weekly salary of not less than the adult minimum wage for a 40-hour week. If the counselor works less than 40 hours per week, the counselor shall be paid the minimum hourly wage for each hour worked. Every employer of a camp counselor under this subsection is entitled to an allowance for meals and lodging as part of the hourly wage rate provided in Section 4, subsection (a), in an amount not to exceed 25% of the minimum wage rate.

(e) A camp counselor employed at a day camp is not subject to the adult minimum wage if the camp counselor is paid a stipend on a onetime or periodic basis and, if the camp counselor is a minor, the minor's parent, guardian or other custodian has consented in writing to the terms of payment before the commencement of such employment.

(Source: P.A. 101-1, eff. 2-19-19.)

(820 ILCS 105/4b new)

Sec. 4b. Consumer price index-u adjustments.

(a) Notwithstanding the provisions of subsection (b), beginning on January 1, 2033, and on every January 1 thereafter, the minimum hourly wage from the previous year shall be increased in proportion to the increase, if any, in the consumer price index-u. If the consumer price index-u increases by more than 2.5% in any year, the minimum hourly wage shall not be increased by more than 2.5%. Any increase to the minimum hourly wage made in accordance with this subsection shall be rounded up to the nearest multiple of $0.05. The new amount resulting from each annual adjustment shall be determined by the Department of Labor and made available to the public by the Department of Labor's website. For the purposes of this subsection, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100.

(b) If the unemployment rate in this State for the preceding year, as calculated by the Department of Employment Security, is equal to or greater than 8.5%, the minimum hourly wage shall not be increased.

(820 ILCS 105/7.5 new)

Sec. 7.5. Powers of the Department and civil penalties.

(a) The Department shall inquire into any alleged violations of this Act, brought to its attention by an interested party, to institute the actions for the penalties provided in this Section and to enforce the provisions of this Act. In addition to the relief set forth in this Act, an employer shall be assessed a civil penalty of $1,000 for each violation of this Act, payable to the Department. Each employee who is subject to a violation of this Act shall constitute a separate violation.

(b) Upon a reasonable belief that an employer covered by this Act is in violation of any part of this Act, an interested party may assert that a violation of this Act has occurred and bring an action for penalties in the county where the violation is alleged to have occurred or where the principal office of the employer is located, pursuant to the following sequence of events:

(1) The interested party submits to the Department a complaint describing the violation and naming the employer alleged to have violated this Act.

(2) The Department sends notice of complaint to the named party alleged to have violated this Act and the interested party. The named party may either contest the alleged violation or cure the alleged violation.

(3) The named party contests or cures the alleged violation within 30 days after the receipt of the notice of complaint or, if the named party does not respond within 30 days, the Department issues a notice of right to sue to the interested party as described in this Act.

(4) The Department issues a notice of right to sue to the interested party, if one or more of the following has occurred:

(A) the named party has cured the alleged violation to the satisfaction of the Director;

(B) the Director has determined that the allegation is unjustified or that the Department does not have jurisdiction over the matter or the parties; or

(C) the Director has determined that the allegation is justified or has not made a determination, and either has decided not to exercise jurisdiction over the matter or has concluded administrative enforcement of the matter.

(c) If, within 180 days after service of the notice of complaint to the parties, the Department has not (i) resolved the contest and cure period, (ii) with the mutual agreement of the parties, extended the time for the named party to cure the violation and resolve the complaint, or (iii) issued a right to sue letter, the interested party may initiate a civil action for penalties. The parties may extend the 180-day period by mutual agreement. The limitations period for the interested party to bring an action for the alleged violation of this Act shall be tolled for the 180-day period and for the period of any mutually agreed extensions. At the end of the 180-day period, or any mutually agreed extensions, the Department shall issue a right to sue letter to the interested party.

(d) Any claim or action filed under this Section must be made within 3 years after the alleged conduct resulting in the complaint plus any period for which the limitations period has been tolled.

(e) In an action brought under this Section, an interested party may recover against the employer any statutory penalties set forth in subsection (a) and injunctive relief. An interested party who prevails in a civil action shall receive 10% of any statutory penalties assessed, plus any attorney's fees and expenses in bringing the action.

(f) Nothing in this Section shall be construed to prevent an employee from bringing a civil action for the employee's own claim for a violation of this Act as described in this Act.

Section 99. Effective date. This Act takes effect upon becoming law.