Full Text of SB3396 101st General Assembly
SB3396 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3396 Introduced 2/14/2020, by Sen. Chuck Weaver SYNOPSIS AS INTRODUCED: |
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820 ILCS 105/4 | from Ch. 48, par. 1004 |
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Amends the Minimum Wage Law. Provides that units of local government may enact ordinances to opt into a reduced minimum wage that is less than the wage otherwise required under the Law. Provides for minimum wages based upon a percentage of the otherwise required minimum wage depending upon the region of the State. Establishes 6 regions for purposes of determining the minimum wage. Provides that in regions where the minimum wage is reduced, the unit of local government must establish a procedure to increase the local minimum wage by at least 5% per year beginning January 1, 2026 and continuing until the local minimum wage is established at $15 per hour. Provides for reduced minimum wages for employees who have not worked 650 hours during a calendar year for an employer. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Minimum Wage Law is amended by changing | 5 | | Section 4 as follows:
| 6 | | (820 ILCS 105/4) (from Ch. 48, par. 1004)
| 7 | | Sec. 4. (a)(1) Except as provided in in subsection (f), | 8 | | every Every employer shall pay to each of his employees in | 9 | | every
occupation wages of not less than $2.30 per hour or in | 10 | | the case of
employees under 18 years of age wages of not less | 11 | | than $1.95 per hour,
except as provided in Sections 5 and 6 of | 12 | | this Act, and on and after
January 1, 1984, every employer | 13 | | shall pay to each of his employees in every
occupation wages of | 14 | | not less than $2.65 per hour or in the case of
employees under | 15 | | 18 years of age wages of not less than $2.25 per hour, and
on | 16 | | and after October 1, 1984 every employer shall pay to each of | 17 | | his
employees in every occupation wages of not less than $3.00 | 18 | | per hour or in
the case of employees under 18 years of age | 19 | | wages of not less than $2.55
per hour, and on or after July 1, | 20 | | 1985 every employer shall pay to each of
his employees in every | 21 | | occupation wages of not less than $3.35 per hour or
in the case | 22 | | of employees under 18 years of age wages of not less than $2.85
| 23 | | per hour,
and from January 1, 2004 through December 31, 2004 |
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| 1 | | every employer shall pay
to
each of his or her employees who is | 2 | | 18 years of age or older in every
occupation wages of not less | 3 | | than $5.50 per hour, and from
January 1,
2005 through June 30, | 4 | | 2007 every employer shall pay to each of his or her employees | 5 | | who is 18 years
of age or older in every occupation wages of | 6 | | not less than $6.50 per hour, and from July 1, 2007 through | 7 | | June 30, 2008 every employer shall pay to each of his or her | 8 | | employees who is 18 years
of age or older in every occupation | 9 | | wages of not less than $7.50 per hour, and from July 1, 2008 | 10 | | through June 30, 2009 every employer shall pay to each of his | 11 | | or her employees who is 18 years
of age or older in every | 12 | | occupation wages of not less than $7.75 per hour, and from July | 13 | | 1, 2009 through June 30, 2010 every employer shall pay to each | 14 | | of his or her employees who is 18 years
of age or older in every | 15 | | occupation wages of not less than $8.00 per hour, and from July | 16 | | 1, 2010 through December 31, 2019 every employer shall pay to | 17 | | each of his or her employees who is 18 years of age or older in | 18 | | every occupation wages of not less than $8.25 per hour, and | 19 | | from
January 1, 2020 through June 30, 2020, every employer | 20 | | shall pay to each of his or her employees who is 18 years of age | 21 | | or older in every occupation wages of not less than $9.25 per | 22 | | hour, and from July 1, 2020 through December 31, 2020 every | 23 | | employer shall pay
to each of his or her employees who is 18 | 24 | | years of age or older
in every occupation wages of not less | 25 | | than $10 per hour, and
from January 1, 2021 through December | 26 | | 31, 2021 every employer shall
pay to each of his or her |
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| 1 | | employees who is 18 years of age or
older in every occupation | 2 | | wages of not less than $11 per hour,
and from January 1, 2022 | 3 | | through December 31, 2022 every employer
shall pay to each of | 4 | | his or her employees who is 18 years of age
or older in every | 5 | | occupation wages of not less than $12 per
hour, and from | 6 | | January 1, 2023 through December 31, 2023 every
employer shall | 7 | | pay to each of his or her employees who is 18
years of age or | 8 | | older in every occupation wages of not less
than $13 per hour, | 9 | | and from January 1, 2024 through December 31, 2024, every | 10 | | employer shall pay to each of his or her employees who is 18 | 11 | | years of age or older in every occupation wages of not less | 12 | | than $14 per hour; and on and after January 1, 2025, every
| 13 | | employer shall pay to each of his or her employees who is 18
| 14 | | years of age or older in every occupation wages of not less
| 15 | | than $15 per hour.
| 16 | | (2) Unless an employee's wages are reduced under Section 6, | 17 | | then in lieu of the rate prescribed in item (1) of this | 18 | | subsection (a), an employer may pay an employee who is 18 years | 19 | | of age or older, during the first 90 consecutive calendar days | 20 | | after the employee is initially employed by the employer, a | 21 | | wage that is not more than 50˘
less than the wage prescribed in | 22 | | item (1) of this subsection (a); however, an employer shall pay | 23 | | not less than the rate prescribed in item (1) of this | 24 | | subsection (a) to: | 25 | | (A) a day or temporary laborer, as defined in Section 5 | 26 | | of the Day and Temporary Labor Services Act, who is 18 |
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| 1 | | years of age or older; and | 2 | | (B) an employee who is 18 years of age or older and | 3 | | whose employment is occasional or irregular and
requires | 4 | | not more than 90 days to complete. | 5 | | (3) At no time on or before December 31, 2019
shall the | 6 | | wages paid to any employee under 18 years of age be more than | 7 | | 50˘
less than the wage required to be paid to employees who are | 8 | | at least 18 years
of age under item (1) of this subsection (a). | 9 | | Beginning on January 1, 2020, every employer shall pay
to each | 10 | | of his or her employees who is under 18 years of age
that has | 11 | | worked more than 650 hours for the employer during any
calendar | 12 | | year a wage not less than the wage required for
employees who | 13 | | are 18 years of age or older under paragraph (1)
of subsection | 14 | | (a) of Section 4 of this Act. Every employer
shall pay to each | 15 | | of his or her employees who is under 18 years
of age that has | 16 | | not worked more than 650 hours for the employer
during any | 17 | | calendar year: (1) $8 per hour from January 1, 2020
through | 18 | | December 31, 2020; (2) $8.50 per hour from January 1, 2021
| 19 | | through December 31, 2021; (3) $9.25 per hour from January 1, | 20 | | 2022
through December 31, 2022; (4) $10.50 per hour from | 21 | | January 1, 2023
through December 31, 2023; (5) $12 per hour | 22 | | from January
1, 2024 through December 31, 2024; and (6) $13 per | 23 | | hour on and after January 1, 2025.
| 24 | | (b) No employer shall discriminate between employees on the | 25 | | basis of sex
or mental or physical disability, except as | 26 | | otherwise provided in this Act by
paying wages to employees at |
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| 1 | | a rate less than the rate at which he pays
wages to employees | 2 | | for the same or substantially
similar work on jobs the | 3 | | performance of which requires equal skill, effort,
and | 4 | | responsibility, and which are performed under similar working
| 5 | | conditions, except where such payment is made pursuant to (1) a | 6 | | seniority
system; (2) a merit system; (3) a system which | 7 | | measures earnings by
quantity or quality of production; or (4) | 8 | | a differential based on any other
factor other than sex or | 9 | | mental or physical disability, except as otherwise
provided in | 10 | | this Act.
| 11 | | (c) Every employer of an employee engaged in an
occupation | 12 | | in which gratuities have customarily and usually constituted | 13 | | and
have been recognized as part of the remuneration for hire | 14 | | purposes is
entitled to an allowance for gratuities as part of | 15 | | the hourly wage rate
provided in Section 4, subsection (a) in | 16 | | an amount not to exceed 40% of the
applicable minimum wage | 17 | | rate. The Director shall require each employer
desiring an | 18 | | allowance for gratuities to provide substantial evidence that
| 19 | | the amount claimed, which may not exceed 40% of the applicable | 20 | | minimum wage
rate, was received by the employee in the period | 21 | | for which the claim of
exemption is made, and no part thereof | 22 | | was returned to the employer.
| 23 | | (d) No camp counselor who resides on the premises of a | 24 | | seasonal camp of
an organized not-for-profit corporation shall | 25 | | be subject to the adult minimum
wage if the camp counselor (1) | 26 | | works 40 or more hours per week, and (2)
receives a total |
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| 1 | | weekly salary of not less than the adult minimum
wage for a | 2 | | 40-hour week. If the counselor works less than 40 hours per
| 3 | | week, the counselor shall be paid the minimum hourly wage for | 4 | | each hour
worked. Every employer of a camp counselor under this | 5 | | subsection is entitled
to an allowance for meals and lodging as | 6 | | part of the hourly wage rate provided
in Section 4, subsection | 7 | | (a), in an amount not to exceed 25% of the
minimum wage rate.
| 8 | | (e) A camp counselor employed at a day camp is not subject | 9 | | to the adult minimum wage if the
camp counselor is paid a | 10 | | stipend on a onetime or periodic basis and, if
the camp | 11 | | counselor is a minor, the minor's parent, guardian or other
| 12 | | custodian has consented in writing to the terms of payment | 13 | | before the
commencement of such employment. | 14 | | (f) A unit of local government, whether or not a home rule | 15 | | unit, and any non-home rule county with respect to the | 16 | | unincorporated territory of the county, may enact an ordinance | 17 | | to opt into a reduced minimum wage from that required by | 18 | | subsection (a) of this Section. The reduced minimum wage rate | 19 | | shall be determined by reference to the Metropolitan or | 20 | | Nonmetropolitan area of the State that is the base of | 21 | | operations of the employee. The Metropolitan and | 22 | | Nonmetropolitan areas of this State are those areas in Illinois | 23 | | as defined by the United States Bureau of Labor Statistics as | 24 | | of May 2018. | 25 | | The maximum reduced minimum wage rate shall be as follows: | 26 | | (1) For the period July 1, 2020 through December 31, |
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| 1 | | 2025, the maximum reduced minimum wage rate for the City of | 2 | | Chicago-Naperville-Elgin region excluding Chicago and Cook | 3 | | County may not be more than 5% less than the rates as | 4 | | determined in subsection (a) of this Section; | 5 | | (2) For the Bloomington, Champaign-Urbana, and | 6 | | Springfield areas:
| 7 | | (A) for the period July 1, 2020 through December | 8 | | 31, 2020, the maximum reduced minimum wage rate may not | 9 | | be more than 5% less than the rates as determined in | 10 | | subsection (a) of this Section; | 11 | | (B) for the period January 1, 2021 through December | 12 | | 31, 2025, the maximum reduced minimum wage rate may not | 13 | | be more than 10% less than the rates as determined in | 14 | | subsection (a) of this Section; | 15 | | (C) for wages paid to employees under 18 years of | 16 | | age who have not worked more than 650 hours for the | 17 | | employer during any calendar year, the maximum reduced | 18 | | minimum wage rate for the period January 1, 2021 | 19 | | through December 31, 2021 may not be more than 5% less | 20 | | than the rates as determined in subsection (a) of this | 21 | | Section and for the period January 1, 2022 through | 22 | | December 31, 2025 the maximum reduced minimum wage rate | 23 | | may not be more than 10% less than the rates as | 24 | | determined in subsection (a) of this Section; | 25 | | (3) For the Cape Girardeau, Carbondale-Marion, | 26 | | Davenport-Moline-Rock Island, Peoria, and St. Louis MO-IL |
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| 1 | | areas: | 2 | | (A) for the period January 1, 2021 through December | 3 | | 31, 2025, the maximum reduced minimum wage rate for may | 4 | | not be more than 15% less than the rates as determined | 5 | | in subsection (a) of this Section; | 6 | | (B) for wages paid to employees under 18 years of | 7 | | age who have not worked more than 650 hours for the | 8 | | employer during any calendar year, the maximum reduced | 9 | | minimum wage rate for the period January 1, 2021 | 10 | | through December 31, 2021 may not be more than 5% less | 11 | | than the rates as determined in subsection (a) of this | 12 | | Section; for the period January 1, 2022 through | 13 | | December 31, 2022 the maximum reduced minimum wage rate | 14 | | may not be more than 10% less than the rates as | 15 | | determined in subsection (a) of this Section; and for | 16 | | the period January 1, 2023 through December 31, 2025 | 17 | | the maximum reduced minimum wage rate may not be more | 18 | | than 15% less than the rates as determined in | 19 | | subsection (a) of this Section; | 20 | | (4) For the Danville, Decatur, Kankakee, and Rockford | 21 | | areas; | 22 | | (A) for the period January 1, 2021 through December | 23 | | 31, 2021, the maximum reduced minimum wage rate for may | 24 | | not be more than 15% less than the rates as determined | 25 | | in subsection (a) of this Section; | 26 | | (B) for the period January 1, 2022 through December |
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| 1 | | 31, 2025, the maximum reduced minimum wage rate for may | 2 | | not be more than 20% less than the rates as determined | 3 | | in subsection (a) of this Section; | 4 | | (C) for wages paid to employees under 18 years of | 5 | | age who have not worked more than 650 hours for the | 6 | | employer during any calendar year, the maximum reduced | 7 | | minimum wage rate for the period January 1, 2021 | 8 | | through December 31, 2021 may not be more than 5% less | 9 | | than the rates as determined in subsection (a) of this | 10 | | Section; for the period January 1, 2022 through | 11 | | December 31, 2022 the maximum reduced minimum wage rate | 12 | | may not be more than 10% less than the rates as | 13 | | determined in subsection (a) of this Section; and for | 14 | | the period January 1, 2023 through December 31, 2025 | 15 | | the maximum reduced minimum wage rate may not be more | 16 | | than 20% less than the rates as determined in | 17 | | subsection (a) of this Section; | 18 | | (5) For the Northwest Illinois, West Central Illinois, | 19 | | East Central Illinois, and South Illinois nonmetropolitan | 20 | | areas: | 21 | | (A) for the period January 1, 2021 through December | 22 | | 31, 2021, the maximum reduced minimum wage rate for may | 23 | | not be more than 15% less than the rates as determined | 24 | | in subsection (a) of this Section; | 25 | | (B) for the period January 1, 2022 through December | 26 | | 31, 2022, the maximum reduced minimum wage rate for may |
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| 1 | | not be more than 20% less than the rates as determined | 2 | | in subsection (a) of this Section; | 3 | | (C) for the period January 1, 2023 through December | 4 | | 31, 2025, the maximum reduced minimum wage rate for may | 5 | | not be more than 25% less than the rates as determined | 6 | | in subsection (a) of this Section; | 7 | | (D) for wages paid to employees under 18 years of | 8 | | age who have not worked more than 650 hours for the | 9 | | employer during any calendar year, the maximum reduced | 10 | | minimum wage rate for the period January 1, 2021 | 11 | | through December 31, 2021 may not be more than 5% less | 12 | | than the rates as determined in subsection (a) of this | 13 | | Section; for the period January 1, 2022 through | 14 | | December 31, 2022 the maximum reduced minimum wage rate | 15 | | may not be more than 10% less than the rates as | 16 | | determined in subsection (a) of this Section; for the | 17 | | period January 1, 2023 through December 31, 2023 the | 18 | | maximum reduced minimum wage rate may not be more than | 19 | | 20% less than the rates as determined in subsection (a) | 20 | | of this Section; and for the period January 1, 2024 | 21 | | through December 31, 2025 the maximum reduced minimum | 22 | | wage rate may not be more than 25% less than the rates | 23 | | as determined in subsection (a) of this Section; | 24 | | (6) For the period January 1 through December 31, 2021 | 25 | | for the Cape Girardeau, Carbondale-Marion, | 26 | | Davenport-Moline-Rock Island, Peoria, St. Louis MO-IL, |
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| 1 | | Danville, Decatur, Kankakee, Rockford, Northwest Illinois, | 2 | | West Central Illinois, East Central Illinois, and South | 3 | | Illinois nonmetropolitan areas, the minimum wage rate | 4 | | shall be $9.25. | 5 | | (g) Any unit of local that enacts an ordinance to opt into | 6 | | a reduced maximum minimum wage rate as provided in subsection | 7 | | (f) of this Section shall by ordinance increase the maximum | 8 | | reduced minimum wage rate by a minimum of 5% per year beginning | 9 | | January 1, 2026 until the rate reaches $15 per hour. | 10 | | (Source: P.A. 101-1, eff. 2-19-19.)
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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