New Laws Impacting Wallets to Take Effect in Illinois and Chicago on July 1
Beginning July 1, several new laws will be implemented in Illinois and Chicago that will have an impact on residents’ wallets. Here’s a breakdown of the changes that individuals can expect:
Chicago, Cook County Minimum Wage Increases:
Chicago is set to see a yearly minimum wage increase starting in July. For employers with 21 or more employees, the hourly minimum wage will rise from $15.40 to $15.80. Employers with four to 20 employees will see an increase from $14.50 to $15. Tipped employees of large businesses will have their minimum wage increased from $9.24 to $9.48, while tipped employees of smaller businesses will see an increase from $8.70 to $9. This increase marks the final adjustment in a series of incremental increases that were aimed at reaching a minimum wage of $15 per hour for small business employees. These increases will also apply to suburbs in Cook County, with non-tipped employees seeing an increase from $13.35 to $13.70 per hour and tipped employees seeing an increase from $7.40 to $8 per hour.
Chicago Fair Workweek Ordinance:
The Fair Workweek Ordinance in Chicago will introduce updated compensation metrics beginning on July 1. Employers with at least 100 employees globally and individuals working in seven specific industries will be covered by the ordinance. Covered industries include building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services. The ordinance aims to provide workers with predictable work schedules and compensation for any changes.
End of Illinois Grocery Tax Suspension:
The 1% grocery tax suspension in Illinois, which began on July 1, 2022, will come to an end this year on June 30. The suspension applied to food for human consumption consumed off the premises where it was sold, excluding certain items such as alcoholic beverages, soft drinks, and food prepared for immediate consumption. The return of the tax is predicted to save taxpayers up to $400 million through the fiscal year.
Illinois Gas Tax:
The mandatory increase in the gas tax, which was delayed last year due to inflation, will go into effect on July 1. This rise in tax follows an increase earlier this year, bringing the total fuel tax on unleaded gasoline in Illinois to 42.4 cents per gallon. Under the state’s 2023 fiscal year budget, the tax increase for fiscal year 2024 will also be implemented, potentially resulting in a second fuel tax increase this year.
Changes to Illinois School Holidays:
The state’s School Code has been updated to include a provision that teachers will not be required to teach on Saturdays, except for school employees necessary for building maintenance on school holidays. The updated code outlines legal school holidays and commemorative holidays throughout the year.
These are just a few of the new laws that will be taking effect in Illinois and Chicago on July 1. For more information on additional laws, residents can visit the Illinois Department of Revenue website.