HB4972 101ST GENERAL ASSEMBLY

LRB101 17838 JLS 67273 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4972

Introduced 2/18/2020, by Rep. Ryan Spain

SYNOPSIS AS INTRODUCED:

820 ILCS 105/4

from Ch. 48, par. 1004

Amends the Minimum Wage Law. Provides that the Department of Labor shall divide the State into 3 areas in accordance with specified criteria. Provides that, after the Department of Labor has divided the State into 3 areas, any municipality may, by ordinance, make that municipality a part of another area, and any county may, by ordinance, make the unincorporated territory of that county a part of another area. Establishes minimum wage rates for each area.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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) The Department of Labor shall designate Illinois Job Area A as the counties in Illinois that are within the Chicago Metropolitan Statistical Area as defined by the United States Office of Management and Budget. Using population data from the most recent decennial census, the Department shall divide the remainder of the State into Illinois Job Areas B and C in accordance with the following criteria:

(i) Illinois Job Areas B and C shall be contiguous but are not required to be compact.

(ii) The Department of Labor shall keep each county intact in either Illinois Job Area B or Illinois Job Area C.

(iii) There shall be no more than a 10% difference in population between Illinois Job Areas B and C.

(iv) To the extent practicable given the criteria in items (i) through (iii), the Department shall place counties in Illinois Job Areas B and C so that Illinois Job Area C has a higher unemployment rate, not seasonally adjusted, than Illinois Job Area B and the difference in unemployment rates between Illinois Job Area C and Illinois Job Area B is maximized.

The Department of Employment Security and the Department of Innovation and Technology shall provide any assistance that the Department of Labor requires to perform its duties under this subsection (a).

After the Department of Labor has divided the State into Illinois Job Areas A, B, and C, any municipality may, by ordinance, make that municipality a part of another Illinois Job Area without regard to the criteria in items (i) through (iv), and any county may, by ordinance, make the unincorporated territory of that county a part of another Illinois Job Area without regard to the criteria in items (i) through (iv).

In Illinois Job Area A, 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 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 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.

In Illinois Job Area B, through June 30, 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 $11 per hour, and from July 1, 2022 through June 30, 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 $11.67 per hour, and from July 1, 2023 through June 30, 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 $12.33 per hour, and from July 1, 2024 through June 30, 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 $13 per hour, and from July 1, 2025 through June 30, 2026 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 $13.67 per hour, and from July 1, 2026 through June 30, 2027 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 $14.33 per hour, and on and after July 1, 2027, 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.

In Illinois Job Area C, through June 30, 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 $11 per hour, and from July 1, 2022 through June 30, 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 $11.33 per hour, and from July 1, 2023 through June 30, 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 $11.67 per hour, and from July 1, 2024 through June 30, 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 $12 per hour, and from July 1, 2025 through June 30, 2026 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 $12.33 per hour, and from July 1, 2026 through June 30, 2027 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 $12.67 per hour, and from July 1, 2027 through June 30, 2028 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 July 1, 2028 through June 30, 2029 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 $13.33 per hour, and from July 1, 2029 through June 30, 2030 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 $13.67 per hour, and from July 1, 2030 through June 30, 2031 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 from July 1, 2031 through June 30, 2032 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 $14.33 per hour, and from July 1, 2032 through June 30, 2033 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 $14.67 per hour, and on and after July 1, 2033, 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 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 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) 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.

(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.)