SB 81 — MINIMUM WAGE-EMPLOYEE

(h) An employer may claim a credit against payments due under this Section for amounts withheld during the first calendar year ending after the date on which a tax credit certificate was issued under Section 35 of the Small Business Job Creation Tax Credit Act.

The credit shall be equal to the amount shown on the certificate, but may not reduce the taxpayer's obligation for any payment due under this Section to less than zero.

If the amount of the credit exceeds the total payments due under this Section with respect to amounts withheld during the calendar year, the excess may be carried forward and applied against the taxpayer's liability under this Section in the 5 succeeding calendar years.

The credit shall be applied to the earliest year for which there is a tax liability.

If there are credits from more than one calendar year that are available to offset a liability, the earlier credit shall be applied first.

This Section is exempt from the provisions of Section 250 of this Act.

(i) 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 each qualified employee, in an amount equal to the maximum credit SB0081 Enrolled - 7 - LRB100 06367 KTG 16406 b multiplied by the number of hours the employee worked during the reporting period.

The credit or credits may be taken against payments due for reporting periods that begin on or after January 1, 2018 and end on or before either:

(1) December 31, 2025 for employers that employ more than 5 employees during the applicable payment period;

or (2) December 31, 2027 for employers that employ no more than 5 employees during the applicable payment period.

An employer may not claim a credit for an employee who has worked less than 90 consecutive days immediately preceding the reporting period;

however, such credits may accrue during that 90-day period and be claimed against payments under this Section for future reporting periods after the employee has worked for the employer at least 90 consecutive days.

For each reporting period, the employer may not claim a credit or credits for more employees than the number of employees making less than the minimum or reduced wage for the current calendar year during the last reporting period of the preceding calendar year.

Notwithstanding any other provision of this subsection, an employer shall not be eligible for credits for a reporting period unless the average wage paid by the employer per employee for all employees making less than $55,000 during the reporting period is greater than the average wage paid by the employer per employee for all employees making less than $55,000 during the same reporting period of the prior calendar year.

SB0081 Enrolled - 8 - LRB100 06367 KTG 16406 b The credit or credits may not reduce the employer's obligation for any payment due under this Section by more than (i) 25% for reporting periods that begin during calendar year 2018, (ii) 20% for reporting periods that begin during calendar year 2019, (iii) 15% for reporting periods that begin during calendar year 2020, (iv) 10% for reporting periods that begin during calendar year 2021, and (v) 5% for reporting periods that begin during calendar year 2022.

For calendar years 2023 through (1) December 31, 2025 for employers that employ more than 5 employees during the applicable payment period or (2) December 31, 2027 for employers that employ no more than 5 employees during the applicable payment period, the total amount of credits awarded to a taxpayer in each calendar year shall be equal to the total amount of credits awarded to that taxpayer in calendar year 2022.

The taxpayer may apply all or a portion of the total credit amount for any such calendar year to any reporting period or periods in that calendar year, provided that the total amount of credits claimed by the taxpayer in that taxable year does not exceed the total amount of credits awarded to that taxpayer in calendar year 2022.

Each employer who deducts and withholds or is required to deduct and withhold tax under this Act and who retains income tax withholdings under this subsection must make a return with respect to such taxes and retained amounts in the form and manner that the Department, by rule, requires and pay to the Department or to a depositary designated by the Department SB0081 Enrolled - 9 - LRB100 06367 KTG 16406 b those withheld taxes not retained by the employer.

For the purposes of this subsection (i):

(1) "Category of employee" means:

(A) employees who are under 18 years of age;

(B) employees who are 18 years of age or older, but who qualify for a reduced minimum wage as provided under paragraph (2) of subsection (a) of Section 4 of the Minimum Wage Law;

(C) employees who are engaged in an occupation in which gratuities have customarily and usually constituted, and have been recognized as part of, the remuneration for hire purposes, as provided in subsection (c) of Section 4 of the Minimum Wage Law;

(D) employees who are 18 years of age or older, but who qualify for a reduced minimum wage under Section 5 of the Minimum Wage Law;

(E) employees who are 18 years of age or older, but who qualify for a reduced minimum wage under Section 6 of the Minimum Wage Law;

and (F) employees who are 18 years of age or older and do not qualify under paragraph (B), (C), (D), or (E) of this item (1).

(2) "Employer" and "employee" have the meanings ascribed to those terms in the Minimum Wage Law, except that "employee" also includes employees who work for an employer employing fewer than 4 employees.

"Employer" does SB0081 Enrolled - 10 - LRB100 06367 KTG 16406 b not include an employer that owns or operates 4 or more establishments in the aggregate nationally pursuant to a franchise agreement.

(3) "Maximum credit" means:

(A) $0.45 per hour for qualified employees for whom the employer receives an allowance for gratuities under subsection (c) of Section 4 of the Minimum Wage Law;

(B) $0.53 per hour for employees who receive a reduced minimum wage under Section 6 of the Minimum Wage Law;

and (C) $0.75 per hour for all other qualified employees.

(4) "Qualified employee" means an employee who:

(i) makes no more per hour than an amount equal to the minimum wage or reduced minimum wage for that category of employee plus $0.25;

and (ii) has an average wage paid per hour by the employer during the reporting period equal to or greater than his or her average wage paid per hour by the employer during each reporting period for the immediately preceding 12 months.

(Source:

P.A.

96-834, eff.

12-14-09;

96-888, eff.

4-13-10;

96-905, eff.

6-4-10;

96-1027, eff.

7-12-10;

97-333, eff.

8-12-11;

97-507, eff.

8-23-11.) Section 10.

The Minimum Wage Law is amended by changing Section 4 as follows:

(820 ILCS 105/4) (from Ch.

1003)1004) SB0081 Enrolled - 11 - LRB100 06367 KTG 16406 b Sec.

3.4.

As(a)(1) usedEvery employer shall pay to each of his employees in every occupation wages of not less than $2.30 per hour or in the case of employees under 18 years of age wages of not less than $1.95 per hour, except as provided in Sections 5 and 6 of this Act:Act, and on and after January 1, 1984, every employer shall pay to each of his employees in every occupation wages of not less than $2.65 per hour or in the case of employees under 18 years of age wages of not less than $2.25 per hour, and on and after October 1, 1984 every employer shall pay to each of his employees in every occupation wages of not less than $3.00 per hour or in the case of employees under 18 years of age wages of not less than $2.55 per hour, and on or after July 1, 1985 every employer shall pay to each of his employees in every occupation wages of not less than $3.35 per hour or in the case of employees under 18 years of age wages of not less than $2.85 per hour, and from January 1, 2004 through December 31, 2004 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $5.50 per hour, and from January 1, 2005 through June 30, 2007 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $6.50 per hour, and from July 1, 2007 through June 30, 2008 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $7.50 per hour, and from July 1, 2008 through June 30, 2009 every SB0081 Enrolled - 12 - LRB100 06367 KTG 16406 b employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $7.75 per hour, and from July 1, 2009 through June 30, 2010 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $8.00 per hour, and from on and after July 1, 2010 through December 31, 2017 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $8.25 per hour, and from January 1, 2018 to December 31, 2018 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $9 per hour, and from January 1, 2019 to December 31, 2019 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $10 per hour, and from January 1, 2020 to December 31, 2020 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $11.25 per hour, and from January 1, 2021 to December 31, 2021 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $13 per hour, and on and after January 1, 2022 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $15 per hour.

(a)(2) "Director"Unless meansan theemployee's Directorwages are reduced under Section 6, SB0081 Enrolled - 13 - LRB100 06367 KTG 16406 b then in lieu of the Departmentrate prescribed in item (1) of Labor,this andsubsection "Department"(a), meansan employer may pay an employee who is 18 years of age or older, during the Departmentfirst 90 consecutive calendar days after the employee is initially employed by the employer, a wage that is not more than 50¢ less than the wage prescribed in item (1) of Labor.this subsection (a);

(b)however, "Wages" means compensation due to an employeeemployer byshall reasonpay ofnot hisless employment,than including allowances determined by the Directorrate prescribed in accordanceitem with(1) the provisions of this Actsubsection for(a) gratuitiesto: and, when furnished by the employer, for meals and lodging actually used by the employee.

(c)(A) "Employer"a includesday any individual, partnership, association, corporation, limited liability company, business trust, governmental or quasi-governmentaltemporary body,laborer, oras anydefined personin orSection group5 of persons acting directly or indirectly in the interestDay ofand anTemporary employerLabor inServices relationAct, towho anis employee,18 foryears whichof oneage or moreolder; persons are gainfully employed on some day within a calendar year.

Anand employer(B) isan subjectemployee towho thisis Act18 inyears aof calendarage yearor onolder and afterwhose theemployment firstis dayoccasional in such calendar year in which he employs one or moreirregular persons, and forrequires thenot followingmore calendarthan SB008190 Engrosseddays -to 2complete. - LRB100 06367 KTG 16406 b year.

(d)(3) "Employee"On includesor anybefore individualDecember permitted31, to2017, workat byAt anno employertime inshall anthe occupation,wages andpaid includes,to notwithstandingany subdivisionemployee (1)under 18 years of thisage subsectionbe (d),more onethan or50¢ moreless domesticthan workersthe aswage definedrequired into Sectionbe 10paid ofto theemployees Domesticwho Workers'are Billat ofleast Rights18 Act,years butof doesage notunder includeitem any(1) individualof permittedthis tosubsection work:(a).

(1)Beginning Foron anor after January 1, 2018, every employer employingshall fewerpay thanto 4each of his or her employees exclusivewho is under 18 years of age that has worked more than 650 hours for the employer'semployer parent,during spouseany orcalendar childyear a wage not less than the wage required for employees who are 18 years of age or otherolder membersunder paragraph (1) of hissubsection immediate(a) family.of Section 4 of this Law.

(2)Every As an employee employed in agriculture or aquaculture (A) if such employee is employed by an employer whoshall didpay not,to duringeach any calendar quarter during the preceding calendar year, use more than 500 man-days of agriculturalhis or aquaculturalher labor,employees (B)who if such employee is theunder parent,18 spouseyears or child, or other member of theage employer'sthat immediate family, (C) if such employee (i) is employed as a hand harvest laborer and is paid on a piece rate basis in an operation which has been,not andworked ismore customarilythan and650 generallyhours recognizedfor as having been, paid on a piece rate basis in the regionemployer ofSB0081 employment,Enrolled (ii)- commutes14 daily- fromLRB100 his06367 permanentKTG residence16406 tob the farm on which he is so employed, and (iii) has been employed in agriculture less than 13 weeks during theany preceding calendar year,year: (D) if such employee (other than an employee described in clause (C) of this subparagraph):

(i)(1) is$8 16per SB0081hour Engrossedfrom -January 31, -2018 LRB100to 06367December KTG31, 164062018; b years of age or under and is employed as a hand harvest laborer, is paid on a piece rate basis in an operation which has been, and is customarily and generally recognized as having been, paid on a piece rate basis in the region of employment, (ii) is employed on the same farm as his parent or person standing in the place of his parent, and (iii) is paid at the same piece rate as employees over 16 are paid on the same farm.

(3)(2) (Blank).$8.50 per hour from January 1, 2019 to December 31, 2019;

(4)(3) As$9.25 anper outsidehour salesman.from January 1, 2020 to December 31, 2020;

(5)(4) As$10.50 aper memberhour offrom aJanuary religious1, corporation2021 orto organization.December 31, 2021;

(6)and At(5) an$12 accreditedper Illinoishour collegeon orand universityafter employedJanuary by1, the2022. college or university at which he is a student who is covered under the provisions of the Fair Labor Standards Act of 1938, as heretofore or hereafter amended.

(7)(b) ForNo employer shall discriminate between employees on the basis of sex or mental or physical disability, except as otherwise provided in this Act by paying wages to employees at a motorrate carrierless andthan withthe respectrate at which he pays wages to whomemployees for the U.S.same or substantially similar work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to (1) a seniority system;

Secretary(2) ofa Transportationmerit hassystem; the power to establish qualifications and maximum hours of service under the provisions of Title 49 U.S.C.

or(3) thea Statesystem ofwhich Illinoismeasures underearnings Sectionby 18b-105quantity (Titleor 92quality of theproduction; Illinois Administrative Code, Part 395 - Hours of Service of Drivers) of the Illinois Vehicle Code.

(8) As an employee employed as a player who is 28 years old or younger,(4) a manager,differential abased coach,on orany another athleticfactor trainerother SB0081 Engrossed - 4 - LRB100 06367 KTG 16406 b by a minor league professional baseball team not affiliated with a major league baseball club, if (A) the minor league professional baseball team does not operate for more than 7sex monthsor inmental any calendar year or (B)physical duringdisability, theexcept precedingas calendarotherwise year,provided thein minorthis leagueAct. professional baseball team's average receipts for any 6-month period of the year were not more than 33 1/3% of its average receipts for the other 6 months of the year.

The(c) aboveEvery exclusionsemployer fromof an employee engaged in an occupation in which gratuities have customarily and usually constituted and have been recognized as part of the termremuneration "employee"for mayhire bepurposes furtheris definedentitled byto regulationsan allowance for gratuities as part of the Director.hourly wage rate provided in Section 4, subsection (a) in an amount not to exceed 40% of the applicable minimum wage rate.

(e)The "Occupation"Director meansshall require each employer desiring an industry,SB0081 trade,Enrolled business- or15 class- LRB100 06367 KTG 16406 b allowance for gratuities to provide substantial evidence that the amount claimed, which may not exceed 40% of workthe applicable minimum wage rate, was received by the employee in the period for which employeesthe areclaim gainfullyof employed.exemption is made, and no part thereof was returned to the employer.

(f)(d) "Gratuities"No meanscamp voluntarycounselor monetarywho contributionsresides toon anthe employeepremises fromof a guest,seasonal patroncamp of an organized not-for-profit corporation shall be subject to the adult minimum wage if the camp counselor (1) works 40 or customermore inhours connectionper withweek, servicesand rendered.(2) receives a total weekly salary of not less than the adult minimum wage for a 40-hour week.

(g)If "Outsidethe salesman"counselor meansworks anless employeethan regularly40 engagedhours inper makingweek, salesthe orcounselor obtainingshall ordersbe orpaid contractsthe forminimum serviceshourly wherewage afor majoreach portionhour ofworked. such duties are performed away from his employer's place of business.

(h)Every "Dayemployer camp"of means a seasonalcamp recreationcounselor programunder inthis operationsubsection foris noentitled moreto thanan 16allowance weeksfor intermittentlymeals throughoutand thelodging calendaras year,part accommodatingof forthe profithourly orwage underrate philanthropicprovided orin charitableSection auspices,4, 5subsection or(a), morein childrenan underamount 18not yearsto ofexceed age,25% notof includingthe overnightminimum programs.wage rate.

The(e) termA "daycamp camp"counselor doesemployed at a day camp is not includesubject ato "daythe careadult agency",minimum "childwage careif facility"the camp counselor is paid a stipend on a onetime or "fosterperiodic familybasis home"and, asif licensedthe bycamp counselor is a minor, the Illinoisminor's SB0081parent, Engrossedguardian -or 5other -custodian LRB100has 06367consented KTGin 16406writing bto Departmentthe terms of Childrenpayment andbefore Familythe Services.commencement of such employment.

99-758,99-143, eff.

1-1-17.)7-27-15.) Section 99.