SB3396 101ST GENERAL ASSEMBLY

LRB101 17699 JLS 67126 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3396

Introduced 2/14/2020, by Sen. Chuck Weaver

SYNOPSIS AS INTRODUCED:

820 ILCS 105/4

from Ch. 48, par. 1004

Amends the Minimum Wage Law. Provides that units of local government may enact ordinances to opt into a reduced minimum wage that is less than the wage otherwise required under the Law. Provides for minimum wages based upon a percentage of the otherwise required minimum wage depending upon the region of the State. Establishes 6 regions for purposes of determining the minimum wage. Provides that in regions where the minimum wage is reduced, the unit of local government must establish a procedure to increase the local minimum wage by at least 5% per year beginning January 1, 2026 and continuing until the local minimum wage is established at $15 per hour. Provides for reduced minimum wages for employees who have not worked 650 hours during a calendar year for an employer. Effective immediately.

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) Except as provided in in subsection (f), every 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.

(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.

(f) A unit of local government, whether or not a home rule unit, and any non-home rule county with respect to the unincorporated territory of the county, may enact an ordinance to opt into a reduced minimum wage from that required by subsection (a) of this Section. The reduced minimum wage rate shall be determined by reference to the Metropolitan or Nonmetropolitan area of the State that is the base of operations of the employee. The Metropolitan and Nonmetropolitan areas of this State are those areas in Illinois as defined by the United States Bureau of Labor Statistics as of May 2018.

The maximum reduced minimum wage rate shall be as follows:

(1) For the period July 1, 2020 through December 31, 2025, the maximum reduced minimum wage rate for the City of Chicago-Naperville-Elgin region excluding Chicago and Cook County may not be more than 5% less than the rates as determined in subsection (a) of this Section;

(2) For the Bloomington, Champaign-Urbana, and Springfield areas:

(A) for the period July 1, 2020 through December 31, 2020, the maximum reduced minimum wage rate may not be more than 5% less than the rates as determined in subsection (a) of this Section;

(B) for the period January 1, 2021 through December 31, 2025, the maximum reduced minimum wage rate may not be more than 10% less than the rates as determined in subsection (a) of this Section;

(C) for wages paid to employees under 18 years of age who have not worked more than 650 hours for the employer during any calendar year, the maximum reduced minimum wage rate for the period January 1, 2021 through December 31, 2021 may not be more than 5% less than the rates as determined in subsection (a) of this Section and for the period January 1, 2022 through December 31, 2025 the maximum reduced minimum wage rate may not be more than 10% less than the rates as determined in subsection (a) of this Section;

(3) For the Cape Girardeau, Carbondale-Marion, Davenport-Moline-Rock Island, Peoria, and St. Louis MO-IL areas:

(A) for the period January 1, 2021 through December 31, 2025, the maximum reduced minimum wage rate for may not be more than 15% less than the rates as determined in subsection (a) of this Section;

(B) for wages paid to employees under 18 years of age who have not worked more than 650 hours for the employer during any calendar year, the maximum reduced minimum wage rate for the period January 1, 2021 through December 31, 2021 may not be more than 5% less than the rates as determined in subsection (a) of this Section; for the period January 1, 2022 through December 31, 2022 the maximum reduced minimum wage rate may not be more than 10% less than the rates as determined in subsection (a) of this Section; and for the period January 1, 2023 through December 31, 2025 the maximum reduced minimum wage rate may not be more than 15% less than the rates as determined in subsection (a) of this Section;

(4) For the Danville, Decatur, Kankakee, and Rockford areas;

(A) for the period January 1, 2021 through December 31, 2021, the maximum reduced minimum wage rate for may not be more than 15% less than the rates as determined in subsection (a) of this Section;

(B) for the period January 1, 2022 through December 31, 2025, the maximum reduced minimum wage rate for may not be more than 20% less than the rates as determined in subsection (a) of this Section;

(C) for wages paid to employees under 18 years of age who have not worked more than 650 hours for the employer during any calendar year, the maximum reduced minimum wage rate for the period January 1, 2021 through December 31, 2021 may not be more than 5% less than the rates as determined in subsection (a) of this Section; for the period January 1, 2022 through December 31, 2022 the maximum reduced minimum wage rate may not be more than 10% less than the rates as determined in subsection (a) of this Section; and for the period January 1, 2023 through December 31, 2025 the maximum reduced minimum wage rate may not be more than 20% less than the rates as determined in subsection (a) of this Section;

(5) For the Northwest Illinois, West Central Illinois, East Central Illinois, and South Illinois nonmetropolitan areas:

(A) for the period January 1, 2021 through December 31, 2021, the maximum reduced minimum wage rate for may not be more than 15% less than the rates as determined in subsection (a) of this Section;

(B) for the period January 1, 2022 through December 31, 2022, the maximum reduced minimum wage rate for may not be more than 20% less than the rates as determined in subsection (a) of this Section;

(C) for the period January 1, 2023 through December 31, 2025, the maximum reduced minimum wage rate for may not be more than 25% less than the rates as determined in subsection (a) of this Section;

(D) for wages paid to employees under 18 years of age who have not worked more than 650 hours for the employer during any calendar year, the maximum reduced minimum wage rate for the period January 1, 2021 through December 31, 2021 may not be more than 5% less than the rates as determined in subsection (a) of this Section; for the period January 1, 2022 through December 31, 2022 the maximum reduced minimum wage rate may not be more than 10% less than the rates as determined in subsection (a) of this Section; for the period January 1, 2023 through December 31, 2023 the maximum reduced minimum wage rate may not be more than 20% less than the rates as determined in subsection (a) of this Section; and for the period January 1, 2024 through December 31, 2025 the maximum reduced minimum wage rate may not be more than 25% less than the rates as determined in subsection (a) of this Section;

(6) For the period January 1 through December 31, 2021 for the Cape Girardeau, Carbondale-Marion, Davenport-Moline-Rock Island, Peoria, St. Louis MO-IL, Danville, Decatur, Kankakee, Rockford, Northwest Illinois, West Central Illinois, East Central Illinois, and South Illinois nonmetropolitan areas, the minimum wage rate shall be $9.25.

(g) Any unit of local that enacts an ordinance to opt into a reduced maximum minimum wage rate as provided in subsection (f) of this Section shall by ordinance increase the maximum reduced minimum wage rate by a minimum of 5% per year beginning January 1, 2026 until the rate reaches $15 per hour.

(Source: P.A. 101-1, eff. 2-19-19.)

Section 99. Effective date. This Act takes effect upon becoming law.