Federal Minimum Wage Remains at $7.25 Per Hour Since 2009, While State and Local Rates Increase
The federal minimum wage has been set at $7.25 per hour since July 24, 2009. This standard applies across the United States, though individual states and localities have the authority to establish higher minimum wage rates. For instance, Illinois is set to increase its minimum wage to $15 per hour for workers aged 18 and older, and $9 per hour for tipped workers, starting January 1, 2025. For younger workers (17 and under) who work less than 650 hours annually, the Illinois minimum wage will be $13 per hour. Cook County, excluding Chicago, will see its minimum wage rise to $15.40 per hour and $9.25 for tipped employees starting July 1, 2026. The City of Chicago will implement a minimum wage of $17.05 per hour and $12.96 for tipped workers on the same date, applicable to employers with four or more employees. Employers are required to ensure that tipped workers' wages and tips combined meet the full minimum wage.