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 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 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 LRB103 38149 SPS 68282 b A BILL FOR 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 820 ILCS 105/4 from Ch. 48, par. 1004 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 LRB103 38149 SPS 68282 b LRB103 38149 SPS 68282 b A BILL FOR HB5345LRB103 38149 SPS 68282 b HB5345 LRB103 38149 SPS 68282 b HB5345 LRB103 38149 SPS 68282 b 1 AN ACT concerning employment. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Minimum Wage Law is amended by changing 5 Section 4 as follows: 6 (820 ILCS 105/4) (from Ch. 48, par. 1004) 7 Sec. 4. (a)(1) Every employer shall pay to each of his 8 employees in every occupation wages of not less than $2.30 per 9 hour or in the case of employees under 18 years of age wages of 10 not less than $1.95 per hour, except as provided in Sections 5 11 and 6 of this Act, and on and after January 1, 1984, every 12 employer shall pay to each of his employees in every 13 occupation wages of not less than $2.65 per hour or in the case 14 of employees under 18 years of age wages of not less than $2.25 15 per hour, and on and after October 1, 1984 every employer shall 16 pay to each of his employees in every occupation wages of not 17 less than $3.00 per hour or in the case of employees under 18 18 years of age wages of not less than $2.55 per hour, and on or 19 after July 1, 1985 every employer shall pay to each of his 20 employees in every occupation wages of not less than $3.35 per 21 hour or in the case of employees under 18 years of age wages of 22 not less than $2.85 per hour, and from January 1, 2004 through 23 December 31, 2004 every employer shall pay to each of his or 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 820 ILCS 105/4 from Ch. 48, par. 1004 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 LRB103 38149 SPS 68282 b LRB103 38149 SPS 68282 b A BILL FOR 820 ILCS 105/4 from Ch. 48, par. 1004 LRB103 38149 SPS 68282 b HB5345 LRB103 38149 SPS 68282 b HB5345- 2 -LRB103 38149 SPS 68282 b HB5345 - 2 - LRB103 38149 SPS 68282 b HB5345 - 2 - LRB103 38149 SPS 68282 b 1 her employees who is 18 years of age or older in every 2 occupation wages of not less than $5.50 per hour, and from 3 January 1, 2005 through June 30, 2007 every employer shall pay 4 to each of his or her employees who is 18 years of age or older 5 in every occupation wages of not less than $6.50 per hour, and 6 from July 1, 2007 through June 30, 2008 every employer shall 7 pay to each of his or her employees who is 18 years of age or 8 older in every occupation wages of not less than $7.50 per 9 hour, and from July 1, 2008 through June 30, 2009 every 10 employer shall pay to each of his or her employees who is 18 11 years of age or older in every occupation wages of not less 12 than $7.75 per hour, and from July 1, 2009 through June 30, 13 2010 every employer shall pay to each of his or her employees 14 who is 18 years of age or older in every occupation wages of 15 not less than $8.00 per hour, and from July 1, 2010 through 16 December 31, 2019 every employer shall pay to each of his or 17 her employees who is 18 years of age or older in every 18 occupation wages of not less than $8.25 per hour, and from 19 January 1, 2020 through June 30, 2020, every employer shall 20 pay to each of his or her employees who is 18 years of age or 21 older in every occupation wages of not less than $9.25 per 22 hour, and from July 1, 2020 through December 31, 2020 every 23 employer shall pay to each of his or her employees who is 18 24 years of age or older in every occupation wages of not less 25 than $10 per hour, and from January 1, 2021 through December 26 31, 2021 every employer shall pay to each of his or her HB5345 - 2 - LRB103 38149 SPS 68282 b HB5345- 3 -LRB103 38149 SPS 68282 b HB5345 - 3 - LRB103 38149 SPS 68282 b HB5345 - 3 - LRB103 38149 SPS 68282 b 1 employees who is 18 years of age or older in every occupation 2 wages of not less than $11 per hour, and from January 1, 2022 3 through December 31, 2022 every employer shall pay to each of 4 his or her employees who is 18 years of age or older in every 5 occupation wages of not less than $12 per hour, and from 6 January 1, 2023 through December 31, 2023 every employer shall 7 pay to each of his or her employees who is 18 years of age or 8 older in every occupation wages of not less than $13 per hour, 9 and from January 1, 2024 through December 31, 2024, every 10 employer shall pay to each of his or her employees who is 18 11 years of age or older in every occupation wages of not less 12 than $14 per hour; and on and after January 1, 2025, every 13 employer shall pay to each of his or her employees who is 18 14 years of age or older in every occupation wages of not less 15 than $15 per hour. 16 (2) Unless an employee's wages are reduced under Section 17 6, then in lieu of the rate prescribed in item (1) of this 18 subsection (a), an employer may pay an employee who is 18 years 19 of age or older, during the first 90 consecutive calendar days 20 after the employee is initially employed by the employer, a 21 wage that is not more than 50 less than the wage prescribed in 22 item (1) of this subsection (a); however, an employer shall 23 pay not less than the rate prescribed in item (1) of this 24 subsection (a) to: 25 (A) a day or temporary laborer, as defined in Section 26 5 of the Day and Temporary Labor Services Act, who is 18 HB5345 - 3 - LRB103 38149 SPS 68282 b HB5345- 4 -LRB103 38149 SPS 68282 b HB5345 - 4 - LRB103 38149 SPS 68282 b HB5345 - 4 - LRB103 38149 SPS 68282 b 1 years of age or older; and 2 (B) an employee who is 18 years of age or older and 3 whose employment is occasional or irregular and requires 4 not more than 90 days to complete. 5 (3) At no time on or before December 31, 2019 shall the 6 wages paid to any employee under 18 years of age be more than 7 50 less than the wage required to be paid to employees who are 8 at least 18 years of age under item (1) of this subsection (a). 9 Beginning on January 1, 2020, every employer shall pay to each 10 of his or her employees who is under 18 years of age that has 11 worked more than 650 hours for the employer during any 12 calendar year a wage not less than the wage required for 13 employees who are 18 years of age or older under paragraph (1) 14 of subsection (a) of Section 4 of this Act. Every employer 15 shall pay to each of his or her employees who is under 18 years 16 of age that has not worked more than 650 hours for the employer 17 during any calendar year: (1) $8 per hour from January 1, 2020 18 through December 31, 2020; (2) $8.50 per hour from January 1, 19 2021 through December 31, 2021; (3) $9.25 per hour from 20 January 1, 2022 through December 31, 2022; (4) $10.50 per hour 21 from January 1, 2023 through December 31, 2023; (5) $12 per 22 hour from January 1, 2024 through December 31, 2024; and (6) 23 $13 per hour on and after January 1, 2025. 24 (b) No employer shall discriminate between employees on 25 the basis of sex or mental or physical disability, except as 26 otherwise provided in this Act by paying wages to employees at HB5345 - 4 - LRB103 38149 SPS 68282 b HB5345- 5 -LRB103 38149 SPS 68282 b HB5345 - 5 - LRB103 38149 SPS 68282 b HB5345 - 5 - LRB103 38149 SPS 68282 b 1 a rate less than the rate at which he pays wages to employees 2 for the same or substantially similar work on jobs the 3 performance of which requires equal skill, effort, and 4 responsibility, and which are performed under similar working 5 conditions, except where such payment is made pursuant to (1) 6 a seniority system; (2) a merit system; (3) a system which 7 measures earnings by quantity or quality of production; or (4) 8 a differential based on any other factor other than sex or 9 mental or physical disability, except as otherwise provided in 10 this Act. 11 (c) Through December 31, 2024, every Every employer of an 12 employee engaged in an occupation in which gratuities have 13 customarily and usually constituted and have been recognized 14 as part of the remuneration for hire purposes is entitled to an 15 allowance for gratuities as part of the hourly wage rate 16 provided in Section 4, subsection (a) in an amount not to 17 exceed 40% of the applicable minimum wage rate. The Director 18 shall require each employer desiring an allowance for 19 gratuities to provide substantial evidence that the amount 20 claimed, which may not exceed 40% of the applicable minimum 21 wage rate, was received by the employee in the period for which 22 the claim of exemption is made, and no part thereof was 23 returned to the employer. On and after January 1, 2025, an 24 employer shall not be entitled to an allowance for gratuities 25 and shall pay each employee no less than the applicable 26 minimum wage rate, including any minimum wage rate higher than HB5345 - 5 - LRB103 38149 SPS 68282 b HB5345- 6 -LRB103 38149 SPS 68282 b HB5345 - 6 - LRB103 38149 SPS 68282 b HB5345 - 6 - LRB103 38149 SPS 68282 b 1 the State minimum wage as required by local ordinance in home 2 rule municipalities. 3 This subsection is a denial and limitation of home rule 4 powers and functions under subsection (g) of Section 6 of 5 Article VII of the Illinois Constitution. 6 (d) No camp counselor who resides on the premises of a 7 seasonal camp of an organized not-for-profit corporation shall 8 be subject to the adult minimum wage if the camp counselor (1) 9 works 40 or more hours per week, and (2) receives a total 10 weekly salary of not less than the adult minimum wage for a 11 40-hour week. If the counselor works less than 40 hours per 12 week, the counselor shall be paid the minimum hourly wage for 13 each hour worked. Every employer of a camp counselor under 14 this subsection is entitled to an allowance for meals and 15 lodging as part of the hourly wage rate provided in Section 4, 16 subsection (a), in an amount not to exceed 25% of the minimum 17 wage rate. 18 (e) A camp counselor employed at a day camp is not subject 19 to the adult minimum wage if the camp counselor is paid a 20 stipend on a onetime or periodic basis and, if the camp 21 counselor is a minor, the minor's parent, guardian or other 22 custodian has consented in writing to the terms of payment 23 before the commencement of such employment. 24 (Source: P.A. 101-1, eff. 2-19-19.) HB5345 - 6 - LRB103 38149 SPS 68282 b