Illinois grocery tax suspension ends, new Chicago minimum wage and more: List of new Illinois laws going into effect July 1
Beginning July 1, a slew of new laws will go into effect in Illinois and in Chicago, with a handful of them impacting your wallet.
Here's a breakdown of the changes residents can expect in Chicago, the suburbs and beyond starting on July 1:
Chicago, Cook County Minimum Wage Increases
A yearly minimum wage increase is set to take effect in Chicago at the start of July, alongside updated provisions in the Fair Workweek Ordinance, Mayor Brandon Johnson's office announced.
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Chicago's hourly minimum wage is set to increase from $15.40 to $15.80 for employers with 21 or more employees, with an increase from $14.50 to $15 for employers with four to 20 employees.
Additionally, the hourly minimum wage for tipped employees will increase from $9.24 to $9.48 for employees of large businesses, while tipped employees of smaller businesses will see their minimum wage increase from $8.70 to $9.
This year's increase marks the final adjustment of a yearly incremental minimum wage increase that culminated in small business employees reaching a minimum wage of $15 per hour.
The increase in Chicago mirrors an increase that will apply to suburbs in Cook County, with the hourly minimum wage set to increase from $13.35 to $13.70 for non-tipped employees and $7.40 to $8 for tipped employees.
Employees are covered by the Cook County ordinance if:
The employee has worked for an employer in Cook County for at least 2 hours in any two-week period, and
The employer has four or more employees (or the employee is a domestic worker) and
The employer maintains a business facility in Cook County or is issued a business license by Cook County.
Chicago Fair Workweek Ordinance
The city's Fair Workweek Ordinance will also introduce updated compensation metrics beginning on July 1.
According to a press release from Johnson's office, employees covered by the ordinance include any individuals who work in one of the seven "covered" industries, while making less than or equal to $30.80 an hour or $59,161.50 a year, and the employer has at least 100 employees globally.
Building services
Health care
Hotels
Manufacturing
Restaurants
Retail
Warehouse services
According to the press release from Johnson's office, the ordinance requires certain employers to provide workers with "predictable work schedules and compensation for changes."
End of Illinois grocery tax suspension
Last year, on July 1, Illinois' 1% grocery tax was suspended as part of a 2022 $46.5 billion state budget plan aimed at providing relief to families struggling with rising costs of goods and inflation. Officials said the extension, set to end July 1 of 2023, was predicted to save taxpayers upwards to $400 million through the fiscal year.
Currently, the suspension applies to "food for human consumption that is to be consumed off the premises where it is sold," including bakery and deli items, cheese and fruit trays, prepackaged snacks and baby formula. Other items, like alcoholic beverages, food with adult-use cannabis, soft drinks, candy and food that prepared for immediate consumption are excluded from the suspension, as are drugs and medication.
According to state documents, the final day of the tax holiday is June 30, 2023.
According to the Illinois Department of Revenue, for a grocery bill of $145.29, a 1% tax would add $1.45.
Illinois Gas Tax
Also under the state’s 2023 fiscal year budget, a mandatory increase in the gas tax that was tied to inflation was delayed by six months last year.
That increase, which took effect on Jan. 1, saw the tax rise to 8.2%, meaning the rate for Illinois motorists climbed by roughly 3.2 cents per gallon earlier this year, bringing the state’s total fuel tax on unleaded gasoline to 42.4 cents per gallon.
But the annual inflation-based increase in the state’s gas tax goes into effect on July 1 each year because of the Rebuild Illinois infrastructure bill, which passed the General Assembly in 2019. Prior to that, the state’s gas tax had been locked at 19 cents per gallon for nearly 20 years.
Under the terms of the state’s 2023 fiscal year budget, the tax increase for fiscal year 2024 will still go into effect, meaning that motorists could see a second fuel tax increase this year.
Changes to Illinois school holidays
In an update to the state's School Code, teachers shall not be required to teach on Saturdays, with the measure extending to other school employees whose presence is not necessary for building maintenance on school holidays.
Legal school holidays include the following dates:
New Year's Day
Martin Luther King Jr. Day
February 12, birthday of Abraham Lincoln
First Monday in March, Casimir Pulaski Day
Good Friday
Memorial Day
Juneteenth
Independence Day
Labor Day
Columbus Day
Veterans' Day
Thanksgiving
Christmas
A school board may apply for an exemption to hold parent-teacher conferences or teachers' institute days on the following days, granted that the board both recognizes the person or people honored on a nearby school date and holds a public hearing on the matter:
Martin Luther King Jr. Day
February 12, birthday of Abraham Lincoln
First Monday in March, Casimir Pulaski Day
Columbus Day
Veterans' Day
Illinois is not among the 20 U.S. states that recognize Indigenous Peoples' Day in lieu of or in addition to Columbus Day.
Additionally, the following days are "commemorative holidays," which are regular school days where school boards "shall include instruction relative to commemorated persons, activities, or events on the commemorative holiday or at any other time during the school year and at any point in the curriculum when such instruction may be deemed appropriate."
January 17, birthday of Muhammad Ali
January 28, Christa McAuliffe day, commemoration of space exploration
February 15, birthday of Susan B. Anthony
March 29, Vietnam War Veterans' Day
September 11, September 11 Day of Remembrance
September 17, Constitution Day
School day immediately preceding Veterans' Day, Korean War Veterans' Day
October 1, Recycling Day
October 7, Iraq and Afghanistan Veterans Remembrance Day
December 7, Pearl Harbor Veterans' Day
Additionally, City of Chicago School District 299 will observe March 4 as a commemorative holiday, known as Mayors' Day. The date "shall be a day to commemorate and be reminded of the past Chief Executive Officers of the City of Chicago, and in particular the late Mayor Richard J. Daley and the late Mayor Harold Washington."
Mayors' Day will be observed on the following Monday if March 4 falls on a Saturday or Sunday.
More information on laws taking effect in Illinois on July 1 can be found here.
Source: NBC Chicago
