While the federal minimum wage has consistently stayed at $7.25 per hour since 2009, many states have decided to increase their minimum wage at the commencement of the new year. In 2025, the highest minimum wage is set to be $17.50 in the District of Columbia, with Washington state and California following closely at $16 per hour. Illinois, Delaware, Maryland, New York and Rhode Island additionally are set to increase theirs to $15 an hour in 2025.
820 ILCS 105/ governs Illinois minimum wage and provides that effective January 1, 2025, the minimum wage in Illinois is increased by an amount of $1, to $15 per hour of work. While the $15 minimum wage applies only to workers 18 years and older, a $1 increase is also set to go in effect workers under 18 years old to raise their hourly minimum wage to $13. One caveat to this amendment applies only to tipped employees. If gratuities are paid to employees, then an employer is only required to pay 60% of the $15 minimum wage— or $9 per hour.
The recent history of minimum wage in Illinois is quite interesting. From 2010 to 2019, Illinois’ hourly minimum wage remained stagnant at $8.25 per hour. However, since 2020, the wage has increased consistently each year, by roughly $1 per hour. As a result of the COVID-19 pandemic, the minimum hourly wage increased twice over the span of a year in 2020. Effective January 1, 2020, the minimum wage was increased to $9.25 and once again on July 1, 2020, the minimum wage increased by $0.75 to $10 an hour.
Although some states, like Illinois and California, are in the habit of consistently increasing their minimum wage, there are many states who continue to follow the federal standard of just $7.25 an hour. As more states continue to increase their minimum hourly wages it will be interesting to see if any effect is felt on a federal level.
For more information regarding minimum wage laws, please contact the qualified attorneys at Rock Fusco & Connelly.