Illinois gas tax minimum wage and drivers licenses changes start July 1

Illinois gas tax minimum wage and drivers licenses changes start July 1

Starting July 1, Illinois will see several significant changes impacting gas taxes, minimum wage, and driver’s licenses, among other areas. These changes are set to affect residents across the state, including those in the Chicago area.

Illinois motorists will experience a slight increase in gas prices as the state’s gas tax rises. The Illinois Department of Revenue has announced that the tax rate on gasoline will increase by just over 3.5%, moving from $0.454 per gallon to $0.47. Diesel fuel will also see a rise, with the tax increasing from $0.529 per gallon to $0.545, an increase of just over 3%. This marks the third time the state has raised the gas tax since pausing the increase in 2022 due to inflation concerns.

In addition to the state gas tax, Illinois motorists also pay federal excise taxes on fuel and state sales taxes, which are applied after the state’s fuel tax is included in the price.

Chicago workers will benefit from increased access to guaranteed paid leave. Employees who work at least 80 hours within a 120-day period will be eligible for up to five days of paid leave and five days of paid sick leave. Employees accrue sick leave at a rate of one hour for every 35 hours worked and must be allowed to use accrued sick leave no later than the 30th day of employment. Employees can carry over 80 hours of leave between 12-month periods.

Minimum wage workers in Chicago and Cook County will see a pay increase starting July 1. In Chicago, the minimum wage will rise to $16.20 an hour, up from $15.80. This increase is adjusted annually according to the Consumer Price Index or a rate of 2.5%, whichever is lower. Tipped workers in Chicago will see their minimum wage rise to $11.02 an hour, with plans to equalize it with the regular minimum wage over the next five years.

In suburban Cook County, the minimum wage will increase to $14.05 for non-tipped workers, while the rate for tipped employees will remain at $8.40 per hour. The rest of Illinois saw its minimum wage rise to $14 an hour on January 1.

Another significant change is the introduction of a program allowing undocumented immigrants to obtain driver’s licenses. Starting July 1, undocumented immigrants living in Illinois will be able to apply for standard driver’s licenses. This move aims to decrease stigmas and increase safety on roadways. Applicants must pass a driving test, have valid car insurance, present identification documents, and prove at least one year of residency within the state. These licenses will comply with the federal REAL ID Act requirements.

The Freelance Worker Protection Act will also take effect on July 1, enhancing protections for freelance workers. The bill requires companies to pay freelance workers on or before the date their contractually agreed payments are due. If no date is specified, payment is due no later than 30 days after the completion of work. The bill also protects freelance workers against threats, intimidation, discipline, harassment, and discrimination, and outlines ways to report violations to the Illinois Department of Labor.

A new bill offering protections for “child influencers” will also go into effect. This legislation is aimed at children who appear in viral social media content. Children under the age of 16 will be entitled to a portion of their gross earnings, which parents must set aside in trust accounts until the child turns 18. The bill also allows individuals over the age of 18 to take legal action if they were not properly compensated for their appearances in monetized social media videos as children.

Additionally, a new bill will change the school code for administering assessment tests. School boards will now be required to hold public votes before approving new contracts for district-administered assessment tests. These meetings must be publicized and take place in the open.

These changes are part of a broader set of new laws taking effect in Illinois on July 1. For a full list of bills with provisions taking effect, including the establishment of a “Creative Economy Task Force” and updates to student loan repayment programs for those in the mental health fields, you can visit the Illinois General Assembly’s website.

Source: ABC7 Chicago, NBC 5 Chicago, Illinois General Assembly

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