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Illinois minimum wage rate to climb annually beginning July 1

November 17, 2010

Illinois employers are reminded that the state’s minimum wage increases July 1 to $7.50 an hour, and the hourly rate will rise 25 cents annually thereafter to reach $8.25 an hour in 2010.

 

Included among last December’s amendments to the minimum wage law is a provision permitting employers to pay newly hired workers 50 cents less, or $7.00 an hour beginning July 1, during the first 90 days of employment.

 

The law also continues to allow workers under age 18 to be paid at a reduced wage rate. After July 1, that reduced wage rate will be $7.00 an hour. Youthful workers are protected under child labor laws from working in certain specified dangerous occupations.

 

The Illinois minimum wage law is enforced by the state’s labor department. The employer is required to post a summary of the act in the workplace and to keep records for their employees that show hours worked and rates of pay.

 

Human resources professionals say businesses should consider whether the new rates will create a "compression" effect for previously hired workers. In other words, while not required by law, the employer might evaluate whether to incrementally raise other workers’ wages, to maintain pay equity.

 

Yearly increases to Illinois minimum wage

 

Employee Category

7/1/07 to 6/30/08

7/1/08 to 6/30/09

7/1/09 to 6/30/10

On or after 7/1/10

Adults (18 or older)

$7.50

$7.75

$8.00

$8.25

First 90 days

$7.00

$7.25

$7.50

$7.75

Youths (Under 18)

$7.00

$7.25

$7.50

$7.75

 

 

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