How SB 2145 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill increases the minimum wage in Illinois and establishes a tax credit for small employers based on the wage increase.

• 820 ILCS 105/4

  $8.25 → $9.00

  The minimum wage is raised from $8.25 to $9.00 starting July 1, 2015.

• 820 ILCS 105/4

  and increases it by $0.50 each July 1 until July 1, 2019, at which point the minimum wage will be $11.00.

  The minimum wage will continue to increase by $0.50 annually until it reaches $11.00 on July 1, 2019.

• 820 ILCS 105/4

  provides that the establishment of a minimum wage that employers must pay their employees is an exclusive power and function of the State and is a denial and limitation of the home rule powers and functions, except that the limitation on home rule powers does not apply to a specified ordinance adopted by the City Council of City of Chicago.

  The bill restricts home rule powers related to minimum wage, allowing local ordinances only in Chicago.

• 35 ILCS 5/704A

  Each employer that does not employ more than 50 employees at any time during the applicable payment period may claim a credit against payments due under this Section for reporting periods that begin on or after July 1, 2015 and end on or before June 30, 2018, for each qualified employee, in an amount equal to: (1) the maximum credit, minus (2) the difference between the average wage paid to the qualified employee by the employer during the reporting period and the minimum wage in effect for that category of employee in the jurisdiction where the employee is employed, multiplied by (3) the number of hours the employee worked during the reporting period.

  This introduces a tax credit for small employers based on the increase in minimum wage for qualified employees.