Employers would pay scheduled minimum wages through 2032

Employers would pay at least the listed hourly minimum wage, and wages paid to committed persons could not be below that wage. The rules cover employees in occupations covered by the Minimum Wage Law and people committed to the Department of Juvenile Justice or the Department of Corrections, subject to listed exclusions and exceptions. Employees under 18 would receive the full applicable minimum wage beginning July 1, 2026, regardless of age or hours worked. The text keeps exceptions for certain workers, including some small-employer, agricultural, student, motor-carrier, sports, camp, and other categories. Employers could pay a limited training wage to some employees age 18 or older during their first 90 consecutive calendar days. The listed adult rates run from July 1, 2026, through December 31, 2031, with a $27 rate beginning January 1, 2032; the under-18 rule begins July 1, 2026.

Employers would pay tipped employees at least the full applicable minimum wage instead of counting gratuities toward that wage. This applies to employees whose jobs customarily include gratuities and to employers seeking to use a gratuity allowance. The text permits a gratuity allowance of up to 30% through 2027, 20% in 2028, and 10% in 2029. An employer claiming an allowance would have to show that the employee received the claimed gratuities and did not return them to the employer. The allowance would end on January 1, 2030; the listed reductions apply from July 1, 2026, through December 31, 2029.

The Department of Labor would adjust the minimum wage annually based on consumer prices and would investigate complaints brought by interested organizations; qualifying organizations could pursue penalties after the required process. The adjustment applies to the minimum wage beginning in 2033, while the enforcement process applies to alleged violations of the Minimum Wage Law and employers covered by it. An annual increase could not exceed 2.5%, would be rounded up to the nearest five cents, and would not occur if the prior-year Illinois unemployment rate was at least 8.5%. Before filing a penalty action, an interested organization would generally submit a complaint, allow the employer 30 days to respond, and wait for the Department's process or a right-to-sue notice. A prevailing interested organization could receive 10% of statutory penalties plus attorney fees and expenses; employees could still bring their own claims. The price-based adjustment would begin January 1, 2033, and repeat each January 1; an enforcement claim generally must be filed within three years of the alleged conduct, subject to listed tolling.