New Illinois pay laws going into effect on New Year’s Day

DIXON – Several new laws affecting Illinois workplaces will go into effect on New Year’s Day.

On Wednesday, Jan. 1, the state minimum wage will increase from $14 to $15, and the minimum wage for tipped workers will increase to $9 per hour. Workers younger than 18 who work less than 650 hours per calendar year will see their wages increase to $13 per hour.

Illinois employers will be required to include pay scales and benefits information when posting employment opportunities. They also must provide pay stubs to workers every pay period, which includes how many hours were worked, pay rates, overtime pay and wage deductions.

Employers also will be required to keep a copy of their workers' pay stubs for three years from the date of employment, even if they are no longer employed with the company. Former and current employees also have the right to request copies of their pay stubs.

“These laws taking effect in January put more money in the pockets of Illinois workers; increase pay transparency; and better inform workers about their hours worked, deductions and wages,” Illinois Department of Labor Director Jane Flanagan said.

The IDOL has updated several mandatory workplace posters, including the “Your Rights Under Illinois Employment Laws,” “Equal Pay Act Pay Transparency Notice,” “Victims' Economic Security and Safety Act,” “Day and Temporary Labor Services Act” (for all day and temporary labor service agencies), and the “Right to Privacy in the Workplace/E-Verify” notice.

The minimum wage increase is part of the Lifting Up Illinois Working Families Act (Public Act 101-0001), which was signed into law Feb. 19, 2019. The measure increases the state’s minimum wage rates in a series of seven adjustments that began Jan. 1, 2020, raising the then-minimum wage to $9.25.

For more information, call the IDOL at 217-782-6206 or visit labor.illinois.gov.