Bill Text: IL HB5345 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Minimum Wage Law. Provides that, on and after January 1, 2025, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate higher than the State minimum wage as required by local ordinance in home rule municipalities. Preempts home rule. Effective January 1, 2025.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced) 2024-04-19 - Rule 19(a) / Re-referred to Rules Committee [HB5345 Detail]

Download: Illinois-2023-HB5345-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5345 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED:
820 ILCS 105/4 from Ch. 48, par. 1004
Amends the Minimum Wage Law. Provides that, on and after January 1, 2025, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate higher than the State minimum wage as required by local ordinance in home rule municipalities. Preempts home rule. Effective January 1, 2025.
LRB103 38149 SPS 68282 b
A BILL FOR
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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Minimum Wage Law is amended by changing
Section 4 as follows:
(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

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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

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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 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.
(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

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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 on and after January 1, 2025.
(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

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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) Through December 31, 2024, every 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 not to
exceed 40% of the applicable minimum wage rate. 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. On and after January 1, 2025, an
employer shall not be entitled to an allowance for gratuities
and shall pay each employee no less than the applicable
minimum wage rate, including any minimum wage rate higher than

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the State minimum wage as required by local ordinance in home
rule municipalities.
This subsection is a denial and limitation of home rule
powers and functions under subsection (g) of Section 6 of
Article VII of the Illinois Constitution.
(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.)