The state and Cook County minimum wage is $15 as of January 1, 2025.

On Jan. 1, 2025, the Illinois  state minimum wage increased to $15 per hour (for employers with four or more employees), $9 per hour for tipped employees, and $13 per hour for employees 17 years old and younger who work less than 650 hours in a calendar year (individuals that work 650 hours or more are entitled to the $15 per hour minimum wage).

This move marks the final hike in Governor Pritzker’s 2019 legislation scheduling minimum wage increases from $9.25 per hour in 2020 to $15 per hour in 2025.

The Cook County minimum wage also increased on Jan. 1, 2025 (for employers with four or more employees) to $15 per hour, and to $9 per hour for tipped employees, matching the state’s minimum wage.

Read the full press release here:  https://labor.illinois.gov/laws-rules/fls/minimum-wage-law.html

SPRINGFIELD – Starting January 1, 2025, employers in Illinois will be required to provide pay stubs to employees each pay period.

The pay stubs must include information on hours worked, pay rates, overtime pay, and deductions from wages.

“This law gives employees greater transparency about their earnings, allowing workers to verify their hours, income, and deductions,” said Illinois Department of Labor Director Jane Flanagan.

As part of Public Act 103-0953, employers must keep a copy of an employee’s pay stub for a period of three years from the date of payment, regardless of whether that person remains employed at the business.

An employee or former employee may request copies of their paystubs at least twice in a 12-month period.

Questions about Public Act 103-0953 can be sent to DOL.Wages@Illinois.gov and 312-793-2808.

Read the full press release here:  https://labor.illinois.gov/news/press-release.30753.html

SPRINGFIELD – The Illinois Department of Labor (IDOL) is reminding job seekers and employers that, effective January 1, 2025, all job postings made by employers with 15 or more employees will need to include pay scale and benefit information.

This amendment to the Illinois Equal Pay Act of 2003 (IL EPA) was contained in HB 3129, passed by the General Assembly and signed into law by Governor JB Pritzker in 2023.

The amendment increases transparency in hiring by allowing prospective employees to see compensation and benefits for open positions. Employers must also inform current employees about all job openings, giving them a chance to apply.

“Here in Illinois, we’ve taken action to close the pay gap and strengthen protections for workers — and these amendments to the Illinois Equal Pay Act are another critical step in that fight,” said Governor JB Pritzker. “By ensuring that compensation and benefits are clear from the start, workers will have the information they need to make informed decisions, helping to create a more equitable job market.”

Anyone may file a complaint with IDOL if they become aware of a job posting that lacks the required salary and benefit information. Complaints should be submitted to IDOL within one year of the alleged violation and can include a link, picture, or screenshot of the posting.

If IDOL finds that an active job posting violates the law, the Department will notify the employer of the complaint and provide a date by which the violation must be resolved.

Read the full press release here: https://labor.illinois.gov/news/press-release.30746.html

On November. 1, 2024 ,the Internal Revenue Service issues a news release IR-2024-285, which announced 401(k) limit increases to $23,500 for 2025, (raised up from $23,000 for 2024.) IRA limit remains $7,000.

This news comes as a relief for many American workers who are looking to save more for retirement. The 401(k) limit is the maximum amount that an individual can contribute to their employer-sponsored retirement account in a given year, while the IRA (individual retirement account) limit is the maximum amount that an individual can contribute to their personal retirement account.

For 2025, the catch-up contribution limit for employees aged 50 and older participating in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan remains set at $7,500. Consequently, these participants can contribute up to $31,000 annually starting in 2025. Additionally, under the recent changes introduced by SECURE 2.0, employees aged 60, 61, 62, and 63 in these plans can benefit from a higher catch-up contribution limit of $11,250, up from the standard $7,500.

The increase in 401(k) contribution limits is important because it allows individuals to save more money towards their future. With the cost of living on the rise and uncertainty surrounding Social Security benefits, having a healthy nest egg for retirement has become crucial. By increasing the limit by $500 from the previous year, the IRS is giving Americans an opportunity to boost their savings even further.

You can read the complete news release issues by the Internal Revenue Service (IRS) by clicking here: 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000

On Tuesday, October 29, 2024 the U.S. Bureau of Labor Statistics released the October 2024 Job Openings and Labor Turnover Summary.

According to the U.S. Bureau of Labor Statistics, the number of job openings remained relatively stable at 7.4 million on the last business day of September. Hires also saw minimal change, totaling 5.6 million for the month. The total number of separations held steady at 5.2 million. Within this category, quits (3.1 million) and layoffs and discharges (1.8 million) showed little variation. This report provides estimates regarding the number and rate of job openings, hires, and separations across the entire nonfarm sector, categorized by industry and establishment size.

Job Openings

On the last business day of September, the number of job openings remained relatively stable at 7.4 million, although it represented a decrease of 1.9 million compared to the previous year. The job openings rate held steady at 4.5 percent for the month. Notable declines in job openings occurred in health care and social assistance (-178,000), state and local government (excluding education) (-79,000), and the federal government (-28,000). In contrast, there was an increase in job openings within the finance and insurance sectors.(+85,000). (See table 1.)

Hires

In September, both the number of hires and the hiring rate showed minimal change, remaining at 5.6 million and 3.5 percent, respectively.

(See table 2.)

Read the full press release here: https://www.bls.gov/news.release/jolts.nr0.htm

P.A. 103-0539 (HB 3129) (Rep. Canty, Sen. Pacione-Zayas)—EQUAL PAY ACT – PAY SCALE

Provides that it is unlawful for an employer with 15 or more employees to fail to include the pay scale for a position in any job posting.  Provides that if an employer engages a third party to announce, post, publish or otherwise make known a job posting, the employer shall provide the pay scale and benefits, or a hyperlink to the pay scale and benefits, to the third party and the third party shall include the pay scale and benefits, or a hyperlink to the pay scale and benefits, in the job posting. IML was neutral on the legislation.  Effective January 1, 2025.

The amendment provides language that Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes: Further amends the Equal Pay Act of 2003. Provides that an employer shall be liable for a third party’s failure to include the pay scale and benefits in a job posting. Provides that an employer shall announce, post, or otherwise make known all opportunities for promotion to all current employees no later than the same calendar day that the employer makes an external job posting for the position. Provides that an employer shall make and preserve records that document the pay scale and benefits for a position. Provides that the Department of Labor may initiate investigations of alleged violations of provisions concerning disclosing a pay scale in job postings. Provides that, if the Department determines that a violation occurred, the employer shall have 7 days upon receipt of notice of a violation from the Department to remedy the violation. Provides that the employer shall demonstrate to the Department that the violation has been remedied or the employer shall be subject to a civil penalty of $100 per day for each day that a violation continues after the 7-day notice period. Effective January 1, 2024 (rather than effective immediately).

Read the complete amendment here:  https://ilga.gov/legislation/BillStatus.asp?GA=103&SessionID=112&DocTypeID=HB&DocNum=3129

The Equal Pay Act Reporting Requirements in Illinois originally began on March 24, 2022 for Large Illinois Businesses.  Large businesses are defined as employers with 100 or more employees in Illinois during the reporting period. However, due to the COVID-19 pandemic, this requirement was delayed until January 1, 2023.

Illinois is taking a proactive stance in combating pay discrimination through the T-Pay Scale law. This legislation requires employers with 15 or more employees to include the pay scale for a position in any job posting. This means that potential applicants will have access to information about the salary range for a particular position before even applying.

The law also extends to third party job postings by requiring employers to provide the pay scale and benefits information to these platforms. This ensures transparency and equal opportunity for all job seekers.