Illinois Laws

No Grocery Tax, Minimum Wage Hike and More: A Look at Changes Starting July 1

While there are several changes to Illinois laws set to take effect starting next month, there are three big shifts Chicago-area residents will note

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Some big measures will take effect in Illinois starting on July 1.

While there are several changes to Illinois laws set to take effect starting next month, there are three big shifts Chicago-area residents will note.

Grocery Tax Suspension

Beginning July 1, Illinois' grocery tax will be suspended.

The move was part of the $46.5 billion state budget plan that was passed earlier this year and is aimed at providing relief to families struggling with rising costs of goods and inflation.

According to lawmakers, the state’s 1% sales tax on groceries will be suspended for the entirety of the new fiscal year, which officials say will save taxpayers up to $400 million through July 1, 2023.

The tax suspension will include "food for human consumption that is to be consumed off the premises where it is sold," other than things like alcoholic beverages, food with adult-use cannabis, soft drinks, candy and food that has been prepared for immediate consumption. Drugs or medicine will not be included.

Chicago Minimum Wage and Other Changes

Currently, Chicago's minimum wage is $15 an hour for employers that have 21 or more employees, and $14 an hour for smaller businesses.

In July, that rate is set to increase, according to city officials.

July 1, per the city's Minimum Wage Ordinance, Chicago's minimum wage for non-tipped workers will increase to $15.40 for large businesses that employ 21 or more workers, and $14.50 for smaller businesses.

For tipped workers, the rates will also increase -- to $9.24 for large employers and $8.70 for smaller businesses.

Teens under the age of 18 will see a new minimum wage of $12 for non-tipped employees, and $7.20 for tipped employees.

According to state law, teenagers under the age of 18 must be paid at least Illinois' current youth minimum wage, which is $9.25.

In addition to the city's minimum wage increase on July 1, certain industries in Chicago including healthcare, hotel, restaurant, retail or warehouse, at that time will also be required to post work schedules with at least 14 days' notice, an increase form the previous 10 days' notice.

Cook County Minimum Wage

Cook County, which has its own minimum wage ordinance, will also increase its minimum wage on July 1, from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped workers.

The current minimum wage for the state of Illinois for non-tipped workers is $12, and $7.20 for tipped workers. Last year, the minimum wage was $11 and $6.60, respectively.

On Jan. 1, 2023, those rates will increase to $13 for non-tipped workers and $7.80 for tipped workers.

Here's a look at other changes set to take effect across the state beginning July 1.

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