When the clock strikes midnight and 2022 arrives, Illinois employers should remain mindful of updates to the state's employment laws taking effect. Changes include a rise in the minimum wage, changes to non-compete law and new reporting requirements on compensation.
A reminder to all Illinois employers that pursuant to Public Act 101-0001 passed in 2019, the state’s minimum wage will continue to rise, moving to $12 an hour for most employees, $7.20 an hour for tipped employees, and $9.25 for employees under 18 (working less than 650 hours per calendar year). Hourly wages will continue to rise each year through 2025 when the state minimum wage reaches the level currently set in Chicago of $15 per hour. The Chicago minimum wage is also likely to rise in line with the consumer price index on July 1, 2022. If current inflationary trends continue, wages in Chicago will likely rise to the statutory maximum of 2.5% ($15.37). Employers should plan accordingly.
Effective January 1, 2022, Illinois law will limit the use of restrictive covenants under the Illinois Freedom to Work Act. Highlights of these changes include:
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