Illinois Welcomes New Laws in July: Higher Minimum Wage, Paid Leave Expansion, and Gas Tax Increase

Springfield, Ill. — Illinois residents can expect several key changes beginning July 1 as new state laws take effect, impacting everything from gasoline prices to workers’ pay and rights. These changes are set to make life a little different for many across the state, affecting motorists, employees, freelancers, and even child social media influencers.

One of the standout adjustments will be at the gas pump. The state’s gasoline tax will see a slight increase from the current 45.4 cents per gallon to 47 cents, marking an uptick of over 3.5%. Diesel fuel taxes will also rise, pushing from 52.9 cents to 54.5 cents per gallon, a hike of just over 3%. These increases are part of a series of scheduled tax adjustments intended to keep pace with inflation after a temporary halt in tax rises in recent years.

In the realm of worker compensation and benefits, Chicago is introducing significant enhancements. Workers in Chicago will be eligible for up to five days of paid leave and another five days of paid sick leave, provided they work a minimum of 80 hours within any 120-day period. This new ordinance stipulates that workers must be permitted to use accrued sick leave no later than the 30th day of employment, with the opportunity to carry over up to 80 hours of leave into the next 12 months.

Additionally, the minimum wage in Chicago is set to increase to $16.20 per hour from the previous $15.80. This adjustment is part of an annual review based on the Consumer Price Index or a 2.5% increase, whichever is lower. Tipped workers in Chicago will also see a pay rise to $11.02 per hour. Over the next five years, their wage will continue to rise until it matches the regular minimum wage.

Meanwhile, in suburban Cook County, the minimum wage for non-tipped workers will be raised to $14.05 per hour, though the rate for tipped workers will remain at $8.40. It’s a different scenario in other parts of Illinois, where the minimum wage has been $14 per hour since January 1.

Beyond wage and tax changes, Illinois is introducing several other notable new laws. A progressive step includes the implementation of a program offering driver’s licenses to undocumented immigrants, contingent upon them passing a driving test, obtaining valid car insurance, presenting necessary identification documents, and proving at least one year of residency in the state.

Freelancers’ rights are also being fortified under the Freelance Worker Protection Act, ensuring timely payment and establishing enhanced protections against intimidation and threats. The Act also provides formal avenues for reporting infractions to the Illinois Department of Labor.

Social media influencers under the age of 16 are set to receive additional protections under new legislation. Often overlooked, these young influencers will now see a specified portion of their gross earnings set aside in a trust fund until they turn 18. This move aims to safeguard their income in a rapidly growing and largely unregulated sector.

With these legislative updates, Illinois is addressing economic, labor, and social issues that reflect broader trends in American society involving workers’ rights, economic adjustment to inflation, and the modern digital workforce. These laws represent a significant step towards adapting state regulations to current economic realities and societal values.