HB 5367

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Full Text of HB5367
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	HB5367 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5367
Introduced 2/10/2026, by Rep. Norma Hernandez
SYNOPSIS AS INTRODUCED:
730 ILCS 5/3-9-2	  from Ch. 38, par. 1003-9-2
730 ILCS 5/3-12-5	  from Ch. 38, par. 1003-12-5
730 ILCS 5/3-13-5	  from Ch. 38, par. 1003-13-5
820 ILCS 105/3	  from Ch. 48, par. 1003
820 ILCS 105/4	  from Ch. 48, par. 1004
820 ILCS 105/4b new
820 ILCS 105/7.5 new
Amends the he Unified Code of Corrections. Provides that the wages paid to committed persons shall not be less than the minimum hourly wage set forth in the Minimum Wage Law. Amends the Minimum Wage Law. Provides for increases in the minimum hourly wage through January 1, 2032. Provides that, on and after July 1, 2026, every employer shall pay to each of his or her employees who is under 18 years of age no less than the applicable minimum hourly wage. Provides that, on and after January 1, 2030, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum hourly wage. Provides that beginning on January 1, 2033, and on every January 1 thereafter, the minimum hourly wage from the previous year shall be increased in proportion to the increase in the consumer price index-u. Provides that the Department of Labor shall inquire into any alleged violations of this Act brought to its attention by an interested party. Sets forth the procedure for complaints brought by interested parties. Defines "interested party". Effective immediately.
LRB104 19736 SPS 33186 b
A BILL FOR
		HB5367		LRB104 19736 SPS 33186 b
1    AN ACT concerning employment.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Unified Code of Corrections is amended by
5changing Sections 3-9-2, 3-12-5, and 3-13-5 as follows:
6    (730 ILCS 5/3-9-2)  (from Ch. 38, par. 1003-9-2)
7    Sec. 3-9-2. Work Training Programs.
8    (a) The Department of Juvenile Justice, in conjunction
9with the private sector, may establish and offer work training
10to develop work habits and equip persons committed to it with
11marketable skills to aid in their community placement upon
12release. Committed persons participating in this program shall
13be paid wages similar to those of comparable jobs in the
14surrounding community. The wages paid under this Section shall 
15not be less than the minimum hourly wage set forth in Section 4 
16of the Minimum Wage Law. A portion of the wages earned shall go
17to the Department of Juvenile Justice to pay part of the
18committed person's room and board, a portion shall be
19deposited into the Violent Crime Victim's Assistance Fund to
20assist victims of crime, and the remainder shall be placed
21into a savings account for the committed person which shall be
22given to the committed person upon release. The Department
23shall promulgate rules to regulate the distribution of the
		HB5367	- 2 -	LRB104 19736 SPS 33186 b
1wages earned.
2    (b) The Department of Juvenile Justice may establish
3programs of incentive by achievement, participation in which
4shall be on a voluntary basis, to sell goods or services to the
5public with the net earnings distributed to the program
6participants subject to rules of the Department of Juvenile
7Justice.
8    (c) For the purposes of this Section, "work" includes any 
9task assigned to a committed person for which a wage would have 
10been due, except for his or her status as a committed person.
11(Source: P.A. 94-696, eff. 6-1-06.)
12    (730 ILCS 5/3-12-5)  (from Ch. 38, par. 1003-12-5)
13    Sec. 3-12-5. Compensation. Persons performing a work
14assignment under subsection (a) of Section 3-12-2 shall [may]
15receive wages under rules and regulations of the Department.
16In determining rates of compensation, the Department shall
17consider the effort, skill and economic value of the work
18performed. The compensation paid under this Section shall not 
19be less than the minimum hourly wage set forth in Section 4 of 
20the Minimum Wage Law. Compensation shall [may] be given to
21persons who participate in other programs of the Department.
22If the committed person files a lawsuit determined frivolous
23under Article XXII of the Code of Civil Procedure, 50% of the
24compensation shall be used to offset the filing fees and costs
25of the lawsuit as provided in that Article until all fees and
		HB5367	- 3 -	LRB104 19736 SPS 33186 b
1costs are paid in full. All other wages shall be deposited in
2the individual's account under rules and regulations of the
3Department. For the purposes of this Section, "work" includes 
4any task assigned to a committed person for which a wage would 
5have been due, except for his or her status as a committed 
6person.
7(Source: P.A. 101-235, eff. 1-1-20.)
8    (730 ILCS 5/3-13-5)  (from Ch. 38, par. 1003-13-5)
9    Sec. 3-13-5. Wages and Working Conditions.
10    A person on work release shall not be required to work for
11less than the prevailing wage or under worse than prevailing
12working conditions in the area. The wages paid under this 
13Section shall not be less than the minimum hourly wage set 
14forth in Section 4 of the Minimum Wage Law. The Department 
15shall charge businesses reasonable hourly rates for meals and 
16the housing of committed persons on work release, if 
17applicable. For the purposes of this Section, "work" includes 
18any task assigned to a committed person for which a wage would 
19have been due, except for his or her status as a committed 
20person.
21(Source: P.A. 77-2097.)
22    Section 10. The Minimum Wage Law is amended by changing
23Sections 3 and 4 and by adding Sections 4b and 7.5 as follows:
		HB5367	- 4 -	LRB104 19736 SPS 33186 b
1    (820 ILCS 105/3)  (from Ch. 48, par. 1003)
2    Sec. 3. As used in this Act:
3    (a) "Director" means the Director of the Department of
4Labor, and "Department" means the Department of Labor.
5    (b) "Wages" means compensation due to an employee by
6reason of his employment, including allowances determined by
7the Director in accordance with the provisions of this Act for
8gratuities and, when furnished by the employer, for meals and
9lodging actually used by the employee.
10    (c) "Employer" includes any individual, partnership,
11association, corporation, limited liability company, business
12trust, governmental or quasi-governmental body, or any person
13or group of persons acting directly or indirectly in the
14interest of an employer in relation to an employee, for which
15one or more persons are gainfully employed on some day within a
16calendar year. An employer is subject to this Act in a calendar
17year on and after the first day in such calendar year in which
18he employs one or more persons, and for the following calendar
19year.
20    (d) "Employee" includes any individual permitted to work
21by an employer in an occupation, and includes, notwithstanding
22subdivision (1) of this subsection (d), one or more domestic
23workers as defined in Section 10 of the Domestic Workers' Bill
24of Rights Act, but does not include any individual permitted
25to work:
26        (1) For an employer employing fewer than 4 employees
		HB5367	- 5 -	LRB104 19736 SPS 33186 b
1    exclusive of the employer's parent, spouse or child or
2    other members of his immediate family.
3        (2) As an employee employed in agriculture or
4    aquaculture (A) if such employee is employed by an
5    employer who did not, during any calendar quarter during
6    the preceding calendar year, use more than 500 man-days of
7    agricultural or aquacultural labor, (B) if such employee
8    is the parent, spouse or child, or other member of the
9    employer's immediate family, (C) if such employee (i) is
10    employed as a hand harvest laborer and is paid on a piece
11    rate basis in an operation which has been, and is
12    customarily and generally recognized as having been, paid
13    on a piece rate basis in the region of employment, (ii)
14    commutes daily from his permanent residence to the farm on
15    which he is so employed, and (iii) has been employed in
16    agriculture less than 13 weeks during the preceding
17    calendar year, (D) if such employee (other than an
18    employee described in clause (C) of this subparagraph):
19    (i) is 16 years of age or under and is employed as a hand
20    harvest laborer, is paid on a piece rate basis in an
21    operation which has been, and is customarily and generally
22    recognized as having been, paid on a piece rate basis in
23    the region of employment, (ii) is employed on the same
24    farm as his parent or person standing in the place of his
25    parent, and (iii) is paid at the same piece rate as
26    employees over 16 are paid on the same farm.
		HB5367	- 6 -	LRB104 19736 SPS 33186 b
1        (3) (Blank).
2        (4) As an outside salesman.
3        (5) As a member of a religious corporation or
4    organization.
5        (6) At an accredited Illinois college or university
6    employed by the college or university at which he is a
7    student who is covered under the provisions of the Fair
8    Labor Standards Act of 1938, as heretofore or hereafter
9    amended.
10        (7) For a motor carrier and with respect to whom the
11    U.S. Secretary of Transportation has the power to
12    establish qualifications and maximum hours of service
13    under the provisions of Title 49 U.S.C. or the State of
14    Illinois under Section 18b-105 (Title 92 of the Illinois
15    Administrative Code, Part 395 - Hours of Service of
16    Drivers) of the Illinois Vehicle Code.
17        (8) As an employee employed as a player who is 28 years
18    old or younger, a manager, a coach, or an athletic trainer
19    by a minor league professional baseball team not
20    affiliated with a major league baseball club, if (A) the
21    minor league professional baseball team does not operate
22    for more than 7 months in any calendar year or (B) during
23    the preceding calendar year, the minor league professional
24    baseball team's average receipts for any 6-month period of
25    the year were not more than 33 1/3% of its average receipts
26    for the other 6 months of the year.
		HB5367	- 7 -	LRB104 19736 SPS 33186 b
1    The above exclusions from the term "employee" may be
2further defined by regulations of the Director.
3    (e) "Occupation" means an industry, trade, business or
4class of work in which employees are gainfully employed.
5    (f) "Gratuities" means voluntary monetary contributions to
6an employee from a guest, patron or customer in connection
7with services rendered.
8    (g) "Outside salesman" means an employee regularly engaged
9in making sales or obtaining orders or contracts for services
10where a major portion of such duties are performed away from
11his employer's place of business.
12    (h) "Day camp" means a seasonal recreation program in
13operation for no more than 16 weeks intermittently throughout
14the calendar year, accommodating for profit or under
15philanthropic or charitable auspices, 5 or more children under
1618 years of age, not including overnight programs. The term
17"day camp" does not include a "day care agency", "child care
18facility" or "foster family home" as licensed by the Illinois
19Department of Children and Family Services.
20    (i) "Interested party" means an organization that monitors 
21or is attentive to compliance with public or worker safety 
22laws, wage and hour requirements, or other statutory 
23requirements.
24(Source: P.A. 99-758, eff. 1-1-17; 100-192, eff. 8-18-17.)
25    (820 ILCS 105/4)  (from Ch. 48, par. 1004)
		HB5367	- 8 -	LRB104 19736 SPS 33186 b
1    Sec. 4. (a)(1) Every employer shall pay to each of his
2employees in every occupation wages of not less than $2.30 per
3hour or in the case of employees under 18 years of age wages of
4not less than $1.95 per hour, except as provided in Sections 5
5and 6 of this Act, and on and after January 1, 1984, every
6employer shall pay to each of his employees in every
7occupation wages of not less than $2.65 per hour or in the case
8of employees under 18 years of age wages of not less than $2.25
9per hour, and on and after October 1, 1984 every employer shall
10pay to each of his employees in every occupation wages of not
11less than $3.00 per hour or in the case of employees under 18
12years of age wages of not less than $2.55 per hour, and on or
13after July 1, 1985 every employer shall pay to each of his
14employees in every occupation wages of not less than $3.35 per
15hour or in the case of employees under 18 years of age wages of
16not less than $2.85 per hour, and from January 1, 2004 through
17December 31, 2004 every employer shall pay to each of his or
18her employees who is 18 years of age or older in every
19occupation wages of not less than $5.50 per hour, and from
20January 1, 2005 through June 30, 2007 every employer shall pay
21to each of his or her employees who is 18 years of age or older
22in every occupation wages of not less than $6.50 per hour, and
23from July 1, 2007 through June 30, 2008 every employer shall
24pay to each of his or her employees who is 18 years of age or
25older in every occupation wages of not less than $7.50 per
26hour, and from July 1, 2008 through June 30, 2009 every
		HB5367	- 9 -	LRB104 19736 SPS 33186 b
1employer shall pay to each of his or her employees who is 18
2years of age or older in every occupation wages of not less
3than $7.75 per hour, and from July 1, 2009 through June 30,
42010 every employer shall pay to each of his or her employees
5who is 18 years of age or older in every occupation wages of
6not less than $8.00 per hour, and from July 1, 2010 through
7December 31, 2019 every employer shall pay to each of his or
8her employees who is 18 years of age or older in every
9occupation wages of not less than $8.25 per hour, and from
10January 1, 2020 through June 30, 2020, every employer shall
11pay to each of his or her employees who is 18 years of age or
12older in every occupation wages of not less than $9.25 per
13hour, and from July 1, 2020 through December 31, 2020 every
14employer shall pay to each of his or her employees who is 18
15years of age or older in every occupation wages of not less
16than $10 per hour, and from January 1, 2021 through December
1731, 2021 every employer shall pay to each of his or her
18employees who is 18 years of age or older in every occupation
19wages of not less than $11 per hour, and from January 1, 2022
20through December 31, 2022 every employer shall pay to each of
21his or her employees who is 18 years of age or older in every
22occupation wages of not less than $12 per hour, and from
23January 1, 2023 through December 31, 2023 every employer shall
24pay to each of his or her employees who is 18 years of age or
25older in every occupation wages of not less than $13 per hour,
26and from January 1, 2024 through December 31, 2024, every
		HB5367	- 10 -	LRB104 19736 SPS 33186 b
1employer shall pay to each of his or her employees who is 18
2years of age or older in every occupation wages of not less
3than $14 per hour; and from [on and after] January 1, 2025
4through June 30, 2026, every employer shall pay to each of his
5or her employees who is 18 years of age or older in every
6occupation wages of not less than $15 per hour; and from July 
71, 2026 through December 31, 2027, every employer shall pay to 
8each of his or her employees in every occupation wages of not 
9less than $17 per hour; and from January 1, 2028 through 
10December 31, 2028, every employer shall pay to each of his or 
11her employees in every occupation wages of not less than $19 
12per hour; and from January 1, 2029 through December 31, 2029, 
13every employer shall pay to each of his or her employees in 
14every occupation wages of not less than $21 per hour; and from 
15January 1, 2030 through December 31, 2030, every employer 
16shall pay to each of his or her employees in every occupation 
17wages of not less than $23 per hour; and from January 1, 2031 
18through December 31, 2031, every employer shall pay each of 
19his or her employees in every occupation wages of not less than 
20$25 per hour; and on and after January 1, 2032, every employer 
21shall pay to each of his or her employees in every occupation 
22wages of not less than $27 per hour, except as provided in 
23Section 4b.
24    (2) Unless an employee's wages are reduced under Section
256, then in lieu of the rate prescribed in item (1) of this
26subsection (a), an employer may pay an employee who is 18 years
		HB5367	- 11 -	LRB104 19736 SPS 33186 b
1of age or older, during the first 90 consecutive calendar days
2after the employee is initially employed by the employer, a
3wage that is not more than 50¢ less than the wage prescribed in
4item (1) of this subsection (a); however, an employer shall
5pay not less than the rate prescribed in item (1) of this
6subsection (a) to:
7        (A) a day or temporary laborer, as defined in Section
8    5 of the Day and Temporary Labor Services Act, who is 18
9    years of age or older; and
10        (B) an employee who is 18 years of age or older and
11    whose employment is occasional or irregular and requires
12    not more than 90 days to complete.
13    (3) At no time on or before December 31, 2019 shall the
14wages paid to any employee under 18 years of age be more than
1550¢ less than the wage required to be paid to employees who are
16at least 18 years of age under item (1) of this subsection (a).
17Beginning on January 1, 2020, every employer shall pay to each
18of his or her employees who is under 18 years of age that has
19worked more than 650 hours for the employer during any
20calendar year a wage not less than the wage required for
21employees who are 18 years of age or older under paragraph (1)
22of subsection (a) of Section 4 of this Act. Every employer
23shall pay to each of his or her employees who is under 18 years
24of age that has not worked more than 650 hours for the employer
25during any calendar year: (1) $8 per hour from January 1, 2020
26through December 31, 2020; (2) $8.50 per hour from January 1,
		HB5367	- 12 -	LRB104 19736 SPS 33186 b
12021 through December 31, 2021; (3) $9.25 per hour from
2January 1, 2022 through December 31, 2022; (4) $10.50 per hour
3from January 1, 2023 through December 31, 2023; (5) $12 per
4hour from January 1, 2024 through December 31, 2024; [and] (6)
5$13 per hour from [on and after] January 1, 2025 through June 30, 
62026; and (7) on and after July 1, 2026, every employer shall 
7pay to each of his or her employees who is under 18 years of 
8age no less than the minimum hourly wage set forth in 
9subsection (a) of Section 4, regardless of an employee's age 
10or the number of hours worked.
11    (b) No employer shall discriminate between employees on
12the basis of sex or mental or physical disability, except as
13otherwise provided in this Act by paying wages to employees at
14a rate less than the rate at which he pays wages to employees
15for the same or substantially similar work on jobs the
16performance of which requires equal skill, effort, and
17responsibility, and which are performed under similar working
18conditions, except where such payment is made pursuant to (1)
19a seniority system; (2) a merit system; (3) a system which
20measures earnings by quantity or quality of production; or (4)
21a differential based on any other factor other than sex or
22mental or physical disability, except as otherwise provided in
23this Act.
24    (c) Every employer of an employee engaged in an occupation
25in which gratuities have customarily and usually constituted
26and have been recognized as part of the remuneration for hire
		HB5367	- 13 -	LRB104 19736 SPS 33186 b
1purposes is entitled to an allowance for gratuities as part of
2the hourly wage rate provided in Section 4, subsection (a) in
3an amount that follows: not to exceed 40% of the applicable
4minimum wage rate through June 30, 2026; not to exceed 30% of 
5the applicable minimum wage rate from July 1, 2026 through 
6December 31, 2027; not to exceed 20% of the applicable minimum 
7wage rate from January 1, 2028 through December 31, 2028; and 
8not to exceed 10% of the applicable minimum wage rate from 
9January 1, 2029 through December 31, 2029. On and after 
10January 1, 2030, an employer shall not be entitled to an 
11allowance for gratuities and shall pay each employee no less 
12than the applicable minimum wage rate provided in subsection 
13(a) of Section 4. The Director shall require each employer
14desiring an allowance for gratuities to provide substantial
15evidence that the amount claimed, which may not exceed 40% of
16the applicable minimum wage rate, was received by the employee
17in the period for which the claim of exemption is made, and no
18part thereof was returned to the employer.
19    (d) No camp counselor who resides on the premises of a
20seasonal camp of an organized not-for-profit corporation shall
21be subject to the adult minimum wage if the camp counselor (1)
22works 40 or more hours per week, and (2) receives a total
23weekly salary of not less than the adult minimum wage for a
2440-hour week. If the counselor works less than 40 hours per
25week, the counselor shall be paid the minimum hourly wage for
26each hour worked. Every employer of a camp counselor under
		HB5367	- 14 -	LRB104 19736 SPS 33186 b
1this subsection is entitled to an allowance for meals and
2lodging as part of the hourly wage rate provided in Section 4,
3subsection (a), in an amount not to exceed 25% of the minimum
4wage rate.
5    (e) A camp counselor employed at a day camp is not subject
6to the adult minimum wage if the camp counselor is paid a
7stipend on a onetime or periodic basis and, if the camp
8counselor is a minor, the minor's parent, guardian or other
9custodian has consented in writing to the terms of payment
10before the commencement of such employment.
11(Source: P.A. 101-1, eff. 2-19-19.)
12    (820 ILCS 105/4b new)
13    Sec. 4b. Consumer price index-u adjustments.
14    (a) Notwithstanding the provisions of subsection (b), 
15beginning on January 1, 2033, and on every January 1 
16thereafter, the minimum hourly wage from the previous year 
17shall be increased in proportion to the increase, if any, in 
18the consumer price index-u. If the consumer price index-u 
19increases by more than 2.5% in any year, the minimum hourly 
20wage shall not be increased by more than 2.5%. Any increase to 
21the minimum hourly wage made in accordance with this 
22subsection shall be rounded up to the nearest multiple of 
23$0.05. The new amount resulting from each annual adjustment 
24shall be determined by the Department of Labor and made 
25available to the public by the Department of Labor's website. 
		HB5367	- 15 -	LRB104 19736 SPS 33186 b
1For the purposes of this subsection, "consumer price index-u" 
2means the index published by the Bureau of Labor Statistics of 
3the United States Department of Labor that measures the 
4average change in prices of goods and services purchased by 
5all urban consumers, United States city average, all items, 
61982-84 = 100.
7    (b) If the unemployment rate in this State for the 
8preceding year, as calculated by the Department of Employment 
9Security, is equal to or greater than 8.5%, the minimum hourly 
10wage shall not be increased.
11    (820 ILCS 105/7.5 new)
12    Sec. 7.5. Powers of the Department and civil penalties.
13    (a) The Department shall inquire into any alleged 
14violations of this Act, brought to its attention by an 
15interested party, to institute the actions for the penalties 
16provided in this Section and to enforce the provisions of this 
17Act. In addition to the relief set forth in this Act, an 
18employer shall be assessed a civil penalty of $1,000 for each 
19violation of this Act, payable to the Department. Each 
20employee who is subject to a violation of this Act shall 
21constitute a separate violation.
22    (b) Upon a reasonable belief that an employer covered by 
23this Act is in violation of any part of this Act, an interested 
24party may assert that a violation of this Act has occurred and 
25bring an action for penalties in the county where the 
		HB5367	- 16 -	LRB104 19736 SPS 33186 b
1violation is alleged to have occurred or where the principal 
2office of the employer is located, pursuant to the following 
3sequence of events:
4        (1) The interested party submits to the Department a 
5    complaint describing the violation and naming the employer 
6    alleged to have violated this Act.
7        (2) The Department sends notice of complaint to the 
8    named party alleged to have violated this Act and the 
9    interested party. The named party may either contest the 
10    alleged violation or cure the alleged violation.
11        (3) The named party contests or cures the alleged 
12    violation within 30 days after the receipt of the notice 
13    of complaint or, if the named party does not respond 
14    within 30 days, the Department issues a notice of right to 
15    sue to the interested party as described in this Act.
16        (4) The Department issues a notice of right to sue to 
17    the interested party, if one or more of the following has 
18    occurred:
19            (A) the named party has cured the alleged 
20        violation to the satisfaction of the Director;
21            (B) the Director has determined that the 
22        allegation is unjustified or that the Department does 
23        not have jurisdiction over the matter or the parties; 
24        or
25            (C) the Director has determined that the 
26        allegation is justified or has not made a 
		HB5367	- 17 -	LRB104 19736 SPS 33186 b
1        determination, and either has decided not to exercise 
2        jurisdiction over the matter or has concluded 
3        administrative enforcement of the matter.
4    (c) If, within 180 days after service of the notice of 
5complaint to the parties, the Department has not (i) resolved 
6the contest and cure period, (ii) with the mutual agreement of 
7the parties, extended the time for the named party to cure the 
8violation and resolve the complaint, or (iii) issued a right 
9to sue letter, the interested party may initiate a civil 
10action for penalties. The parties may extend the 180-day 
11period by mutual agreement. The limitations period for the 
12interested party to bring an action for the alleged violation 
13of this Act shall be tolled for the 180-day period and for the 
14period of any mutually agreed extensions. At the end of the 
15180-day period, or any mutually agreed extensions, the 
16Department shall issue a right to sue letter to the interested 
17party.
18    (d) Any claim or action filed under this Section must be 
19made within 3 years after the alleged conduct resulting in the 
20complaint plus any period for which the limitations period has 
21been tolled.
22    (e) In an action brought under this Section, an interested 
23party may recover against the employer any statutory penalties 
24set forth in subsection (a) and injunctive relief. An 
25interested party who prevails in a civil action shall receive 
2610% of any statutory penalties assessed, plus any attorney's 
		HB5367	- 18 -	LRB104 19736 SPS 33186 b
1fees and expenses in bringing the action.
2    (f) Nothing in this Section shall be construed to prevent 
3an employee from bringing a civil action for the employee's 
4own claim for a violation of this Act as described in this Act.
5    Section 99. Effective date. This Act takes effect upon
6becoming law.