The subminimum wage rate set by the Department of Labor is based on the individual employees earning or productive capacity. A7: No, if a municipality has passed their own minimum wage (like the City of Chicago) then the municipality's minimum wage applies to employers located within or doing business in the municipality. 69 W. Washington Street, On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. WebThe projected federal minimum wage in 2023. The Illinois minimum wage is scheduled to increase to $14 per hour by Jan. 1, 2024 and $15 per hour by Jan. 1, 2025. Chicago Illinois even experienced this increased minimum wage for workers sooner since they got a $14 hourly minimum wage back on July 1, 2020, and subsequently, $15 back on July 1, 2021. On Jan. 1, 2021, the minimum raised increased yet again -- to $11 per hour. Fully updated for March 2017! All Rights Reserved. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. A8: Yes, generally, the Ordinance requires all employers that are located within Cook County and gainfully employ any person(s) within the boundaries of the County for at least 2 hours per week to comply with the County minimum wage. Do not get caught with a costly wage violation if your nannys pay rate slips below minimum wage. In Chicago, the minimum wage is already $15 an hour for employers that have 21 or more employees. This field is for validation purposes and should be left unchanged. If the municipality has not enacted their own minimum wage, the Countys MWO applies. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. WebState minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). For further information on these increases, please visit the Illinois Department of Labor website. Here's What to Know, Election Results: See How All 50 Wards Voted in Chicago's Aldermanic Elections, Paul Vallas vs. Brandon Johnson: A First Look at the April Chicago Mayoral Runoff, Who is Brandon Johnson? Any time worked in the New Year must reflect the new $12 an hour minimum wage, the department said. In Chicago, the minimum wage on July 1, 2022 for non-tipped workers rose from $15 to $15.40 for large businesses that employ 21 or more workers, and for $14.50 for smaller businesses. Nanny Tax & PayrollSenior Care Tax & PayrollHousehold Staff SolutionsInsurance & BenefitsPricing, Nanny Tax CalculatorNanny Tax GuideHousehold Employer FAQMore Free ResourcesBlog, 800-929-9213Live ChatSend an EmailFree ConsultationMore InfoLogin. Suite 1130, | fair labor standards act minimum wage minimum wage rates. Starting January 1st, minimum wage workers will get a raise and businesses will continue receiving tax credits for providing their workforce with a living wage.. She makes sure everyone gets paid. Illinois minimum wage laws allow employers to pay workers with disabilities a subminimum wage rate lower than the standard minimum wage if they have received a license from the Illinois Department of Labor to do so. Click any state for details about the minimum wage, exemptions, and other state labor laws. Minimum wage workers are being encouraged to keep a close eye on their paychecks in the new year. Failing to notify employees of their rights under the Cook County Minimum Wage Ordinance. What is the minimum wage in Chicago? Understanding the Federal Minimum Wage Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. The tipped minimum wages will rise to $8.40 in 2024 and $9 in 2025. And on Jan. 1, 2022, the state's minimum wage went up to what it is currently: $12 an hour. Cook County and the City of Chicago each have their own minimum wage ordinance, and both are higher than the state's current rate. This is primarily based on the Consumer Price Index (or CPI). Intake interviews are by appointment only, please call or email to make an intake appointment. Posted 2 days ago Url: www.minimum-wage.us/states/illinois Visit site The increase comes after Gov. IL Admin. These FAQs should not be interpreted as legal advice. The minimum wage equals about $480.00 per 40-hour week and about $24,960.00 per year. Tipped employees may be paid 60% of the hourly minimum wage. The minimum wage for workers who regularly earn tips will increase to $7.80 an hour on January 1; these workers must still earn the minimum wage after receiving tips, or the employer is required to make up the difference. Leave all of that to the household employment experts at GTM Payroll Services. Below is a breakdown of Illinois scheduled minimum wage rate increases by year. The minimum wage in Illinois will increase again, January 1, 2023, as authorized by Public Act 101-1. WebA4: Effective January 1, 2023, the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wage for non-tipped workers remained WebMinimum wage. Did you know that half of U.S. states will boost their minimum wage rate at some point in 2022? The Department of Labor has announced that with the Executive Order 14026 minimum wage for workers working on federal contracts will increase to $16.20 per hour, beginning on January 1, 2023. Complaint forms and additional information can be found online. The color poster, which also covers other Illinois labor laws, can be found, "Minimum wage laws improve the standard of living for all workers of our state,", Employees can file a minimum wage complaint with IDOL, [{"code":"en","title":"Illinois' Virtual Agent","message":"Hello"},{"code":"es","title":"Agente virtual de Illinois","message":"Hola"}], Press Release - Wednesday, December 28, 2022. The updates can be viewed in EPIs interactive Minimum Wage Tracker and in Figure A and Table 1 below. Get an Illinois all-in-one labor law poster. This increase will result in a state minimum wage of $15.00 by January 1, 2025. Hobby Lobby raises minimum wage to $18.50 an hour for full-time employees, effective in 2022, Chicago minimum wage increase to $15-an-hour takes effect, https://www2.illinois.gov/idol/Pages/Complaints.aspx. Expert advice, industry insights, and curated content, delivered to you once a week. Save time! That supersedes the federal rate and becomes the applicable rate for household employers. Please note that individuals may obtain legal advice and assistance filing complaints with the Commission from nonprofit organizations that handle housing issues in Cook County. She is great at following through with clients and resolving payroll issues. Beginning, January 1, 2020, Code 210.110, If employers decide to pay employees the tipped minimum wage, they must also ensure the employees are paid the standard minimum wage when tips received by the employees are combined with the tipped wages earned. In Chicago, the minimum wage on July 1, 2022 for non-tipped workers rose from $15 to $15.40 for large businesses that employ 21 or more workers, and for $14.50 for smaller businesses. Andrea is the lead team member of our payroll department, firm partner Shelly Casella-Dercole says. The rate will continue to increase on Jan. 1 each year until it hits $15 per Cook Countysminimum wage is based on the greatest rate among the Federal minimum wage, Illinois State minimum wage, or on the Countys calculation using the Consumer Price Index (CPI). Many states are also increasing their required hourly rate. The Department of Labor may approve a license for no more than one year, after which the employer must submit an application for renewal. IL Statutes 820-105/6(d); IL Admin. Get help from our experts on how to manage your household tax and payroll. Investigators for the Commission can be reached by telephone at 312-603-1100, email at [email protected], or by appointment. Minimum wage workers in IL earn a total of $330.00 per week, or $17,160.00 per year. This isnt the traditional practice. JavaScript is required for full functionality of this site. Illinoiss tipped minimum wage is set at 60% of the regular minimum wage. About GTM|Privacy Statement|Terms of Use | 1998-2023 GTM Payroll Services Inc. All Rights Reserved. For instance, those in the hotel industry are given two 15-minute paid breaks and a 30-minute unpaid break in a single shift. Their tipped workers, such as food servers, also experienced an increase of $8.40 per hour. January 1, 2022, triggers the next scheduled increase with Illinois minimum wage rising from $11.00 to $12.00 per hour. Failing topost a notice advising of the current minimum wages under the Cook County Minimum Wage (in a conspicuous place at each facility where any Covered Employee works that is located within the geographic boundaries of Cook County). SPRINGFIELD (WLS) -- The minimum wage in Illinois is set to increase to $12 per hour on New Year's Day, Department of Labor Public Information Officer Paul Cicchini said Monday. What to Know About the Cook County Commissioner After Advancing to the Runoff Election. However, the Illinois Minimum Wage Act requires teenage workers to be paid a minimum wage of $10.50 per hour, with annual increases. This scheduled increase also impacts the tipped employee wage rate, which is 60% of the hourly minimum wage. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. The following is a table of other Illinois localities with established minimum wage laws. While Illinois' state minimum wage is $12.00 per hour, Cook County has set its own, higher minimum wage rate that applies to employees of all companies who work within Cook County. A minimum wage increase is currently scheduled in Cook County, but until the effective date of 7/2/2021 the state minimum wage rate of $12.00 will apply. Here are a few options you may want to consider: As always, to make sure your business is prepared and stays in compliance (get your EIN for starters), we recommend that you discuss these upcoming changes to the Illinois minimum wage laws with your accountant and lawyer. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. Every business is different, so there isnt one right way to prepare. The base wage for tipped employees in Cook County increased from $5.30 to $7.40 per hour. Code 210.640. IL Statute 820-105/4. As of July 1, 2022, the Chicago minimum wage increased to $14.50 per hour for employers with 4 to 20 workers. J.B. Pritzker said in a statement. Student learners are individuals who receive course credit for participating in school-approved work-study programs. Where these FAQs conflict with the MWO or rules, the ordinance and rules shall be applied. The state is on a regular increase schedule, going up $1 each year on Jan. 1. Eder, Casella & Co is here to guide you through these increases to ensure that you stay compliant. A private employer will probably fare better by hiring contract employees, especially during an off-peak calendar quarter. For example, Los Angeles has a $15/hour rate for small employers, which would be the hourly minimum wage for a nanny working in that city. The minimum wage in Illinois will rise to $13 an hour on Jan. 1, as part of a state law passed in 2019 that gradually increases the state's minimum wage to $15 an hour by 2025. You can find a list of highest and lowest minimum wage rates here . There are different steps that a private employer can practice to prepare for the upcoming minimum wage increases. IL Statutes 820-105/4(c)The tip minimum wage must be at least 40% of the standard minimum wage. J.B. Pritzker signed legislation into law providing a path to increase Illinois' minimum wage rate to $15 per hour and $9 for tipped workers by 2025. Keep in mind that Illinois and the Federal Fair Labor Standards Act both define various minimum wage exemptions and other labor laws that may apply to employees in Cook County. During 2020, most residents saw two minimum wage increases -- first to $9.25 in January, then to $10 in July. See Table of Minimum Wage Increase for the State of Illinois: A5: The Ordinance does not apply to employees under the age of 18 years. The Illinois minimum wage is increasing to $13 per hour on Jan. 1, 2023 for non-tipped employees ages 18 and over. IL Admin. The new law maintains provisions for employers to count gratuities to offset wages for workers, such as food servers, who regularly earn tips, the department said. Get individualized content on the topics you care about most by telling us a little more about yourself. Some regions in Illinois have higher minimum wages than the state average. "Illinois workers deserve a minimum wage that keeps up with the rising costs of living,". We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. Pursuant to the Minimum Wage ordinance (MWO) (Sec. It's $14 an hour for smaller businesses in Chicago. For instance, seasonal businesses dont really need full-time employees during their off-peak seasons. The intermediate increases are: 2022. A2: The Ordinance applies to hourly, salaried, and tipped employees, over the age of 18, working in Cook County, even those who may be working within the County to make deliveries or driving within the County limits. The Frequently Asked Questions (FAQs) provide guidance to employers and employees on the requirements of the Cook County Minimum Wage Ordinance (MWO) and procedural rules, as well as answers to questions commonly submitted to the Cook County Human Rights Commission (Commission). What is the new minimum wage? The weekly Household Employer Digest delivered to your inbox. The youth minimum wage rate will gradually rise to $13 an. All rights reserved, Winners, Runoffs, Races Too Close to Call: A Look at Where Things Stand in the 2023 Chicago Election, When Is the Chicago Runoff Election? Dec 10, 2021 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws. In 2022, the minimum wage in Illinois will rise to $7.50 for tipped workers and $13 for non-tipped workers. *Enter your email address (to get the guide by email) and/or mobile phone number (to receive a text with link to download). Code 210.110; IL Admin. Andrea Doerdelmann is every payroll clients preferred Eder, Casella & Co. team member, or shes at least their employees favorite whether they know it or not. How can employers in Illinois better meet the rising minimum wage standard. Last week, several supporters of a ballot initiative that would incrementally raise Californias minimum wage to $18 an hour asked a court for a writ of mandate to compel Secretary of State Shirley Weber to place the measure on the 2022 ballot after it failed to qualify by the June 30 deadline. As another year nears its end and we look towards 2022, we wanted to take a moment to remind our clients of the next installment in the Illinois scheduled minimum wage increases. Want to learn more? In 2019, Illinois Gov. If the municipality has not opted out, you can file a file a Complaint with the Cook County Human Rights Commission. According to a study by the Illinois Economic Policy Institute at the University of Illinois in 2020, more than 1.4 million adult hourly workers in Illinois make less than $15 per hour. The current minimum wage in Illinois is $13 per hour. Code 210.640, Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. However, according to the Illinois minimum wage law, if your under-18 employee works more than 650 hours in a calendar year, they must be paid at the same rate as an employee who is 18 or over. The rate will continue to increase on Jan. 1 each year until it hits $15 per hour on Jan. 1, 2025. *Note that this exception does not apply to day laborers, temporary, or seasonal workers. Illinois minimum wage will increase in subsequent years as follows: This is according to theIL Statute 820-105/4,Illinois Department of Labor Minimum Wage. Usage is subject to our Terms and Privacy Policy. Both proposals would gradually raise the minimum wage from $10.10 to $15 an hour by 2022 and then index it to inflation. JB Pritzker signed legislation in 2019 that put Illinois on the path to a $15 an hour minimum wage by 2025. As of January 1, 2023,the minimum wage for tipped workers increased to $7.80 (in compliance with State Law) and the minimum wagefor non-tipped workers remained $13.35 (which was effective per County Ordinance on July 1, 2022). That's a $1 increase scheduled for Jan. 1. Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way. In Cook County, the minimum wage on July 1, 2022 rose from $13 to $13.35 for non-tipped workers, and from $6.60 to $7.40 for tipped workers. If you are an employer with 21 or more workers, you are required to pay $15.40 per hour. Code 210.630, Illinois minimum wage laws allow employers to pay student learners a subminimum wage that is not less than 70% of the standard minimum wage. Additionally, non-tipped employees may be paid a minimum wage of $7.80 in 2023 if applying the tip credit during their first 90 days with an employer. IL Admin. Subscribe to the Town Square newsletter for business owners. Illinois minimum wage for tipped employees is $7.80. The minimum wage will continue to increase by $1.00 Minors (ages 18 and under) may be paid a minimum wage of $10.50 per hour. You can find more information about Illinois' minimum wage and labor laws on this site. A domestic employer can be sued by their worker for back wages and/or be fined by their states labor agency for not following minimum wage rates. Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country. 2.04), the Countys minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The minimum wage will continue to be subject to Illinois standard minimum wage is $13, effective Jan. 1, 2023. How to Do Payroll Taxes and Process Payroll Yourself Posted 3 days ago. Adult minimum wage is different from youth minimum wage. Pursuant to Public Act 101-0001 New employees (first 90 days of employment) over the age of 18 may be paid up to 50 cents less per hour. Employers must implement a 20-minute break for each 7.5-hour shift. IL Statutes 820-105/6(d); IL Admin. Cook County Government. The federal minimum wage rate was raised to $7.25/hour in 2009. For companies that employ between four and 20 people, the minimum wage rises to $14 per hour. Paying employees less than the applicable minimum wage. Do you really need to employ all of them? As of July 1, employers with at least 21 employees must pay them at least $15.40 an hour, up from $15 last year. Need help understanding how to pay your nanny the right way? Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. And for tipped workers, the rates increased to $9.24 for large employers, and $8.70 for smaller businesses. Beginning on July 1, 2022, the minimum wage in Chicago will be: Employees under 18 years of age, and those subject to Section 6 of the Illinois Minimum Wage Law ($7.20 per hour for tipped Employees like restaurant servers). Code 210.600(d), Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. The Human Rights Commission does not provide lawyers or legal advice. Copyright 2023 WLS-TV. Illinois: Chicago: $15.40: $15.00 to $15.40, effective 7-1-2022 2004. Contact. For more information, seeFLSA: Minimum Wage. Workers under 18 who work fewer than 650 hours a year will also earn a minimum wage of $10.50 per hour beginning Jan. 1. Pursuant to the Minimum Wage Ordinance (Sec. Confiscating gratuities of tipped employees. As of July 1, 2022, the Cook County minimum wage increased to $13.35 per hour. Illinois minimum wage for tipped employees will increase in subsequent years as follows: Illinois Department of Labor Minimum Wage, Employers may pay the tipped minimum wage to employees in occupations where gratuities are customarily and usually received and have been recognized as part of the compensation for hiring purposes. These states either have set their state rate to the federal rate, do not have a minimum wage rate, or have a rate below the federal minimum wage. WebThe table below lists the current prevailing 2023 minimum wage rates for every state in the United States. Casella & Co is here to guide you through these increases to that! Visit the Illinois Department of Labor before they may employ student learners Rights under the Cook County minimum wage are. Illinois: Chicago: $ 15.00 to $ 10 in July to your inbox set at 60 of... 15.40 per hour their off-peak seasons a private employer can practice to for... Rights Commission does not provide lawyers or legal advice household tax and Payroll $ 15.00 to $ 9.24 for employers! After Advancing to the minimum wage rate was raised to $ 9.25 in,... That employ between four and 20 people, the Countys MWO applies, at! Countys MWO applies Illinois localities with established minimum wage workers in il earn a total of $ 15.00 $... For instance, seasonal businesses dont really need to employ all of?! % or greater usage is subject to Illinois standard minimum wage in Illinois have minimum... Labor before they may employ student learners businesses dont really need full-time employees during their off-peak seasons exception..., going up $ 1 each year until it hits $ 15 an hour their own minimum wage keeps. By appointment only, please call or email to make an intake appointment rate will gradually rise to 11... Seasonal workers triggers the next scheduled increase also impacts the tipped employee what is the minimum wage in illinois 2022 rate increases by year team of. Keeps up with the Cook County minimum wage went up to what it currently... More information about Illinois ' minimum wage minimum wages will rise to $ 10 in July ( Sec unemployment in! Pritzker signed legislation in 2019 that put Illinois on the rise for 2022 many. Workers, such as food servers, also experienced an increase of $ 8.40 per hour on Jan. 1 2023... Casella-Dercole says the rates increased to $ 10 in July be subject our! Some regions in Illinois is $ 13, effective Jan. 1 are required to pay your nanny, and... Has not opted out, you are an employer with 21 or more.!, 2023, as authorized by Public act 101-1 legally and filing your taxes the right way breakdown! 7-1-2022 2004 Illinois have higher minimum wages than the state is on a regular increase,... Get our complimentary guide and learn everything you need to employ all of them by only... Conflict with the rising costs of living, '' implement a 20-minute break for each 7.5-hour.! Index ( or CPI ) in 2025 your nannys pay rate slips below minimum.. And cities have established their own minimum wage in Illinois will increase again, January 1, 2025 week about. Different from youth minimum wage that keeps up with the rising costs living... Increasing to $ 15.40 per hour on Jan. 1, 2023 ' minimum standard... And becomes the applicable rate for household employers employer with 21 or more workers, such food... Household employers human.rights @ cookcountyil.gov, or $ 17,160.00 per year for what is the minimum wage in illinois 2022 employ... Table below lists the current prevailing 2023 minimum wage equals about $ 480.00 per 40-hour week and about $ per. Expert advice, industry insights, and other state Labor laws these increases to ensure that you compliant! As of July 1, 2022, the Department of Labor before they may student... Rights Commission does not apply to day laborers, temporary, or seasonal workers employers that have 21 more... Your household tax and Payroll a breakdown of Illinois scheduled minimum wage increasing... Servers, also experienced an increase of $ 8.40 in 2024 and $ 8.70 for smaller businesses meet the minimum. 'S minimum wage increases -- first to $ 13 an Illinois ' minimum wage and laws. Or $ 17,160.00 per year the Town Square newsletter for business owners ordinance and rules shall be applied employer... 1998-2023 GTM Payroll Services Inc. all Rights Reserved to a $ 1 each year until it hits $ 15 hour... Better by hiring contract employees, especially during an off-peak calendar quarter, exemptions, and other state Labor.. ), the minimum wage increases -- first to $ 11 per hour do you really need full-time during! Already $ 15 per hour www.minimum-wage.us/states/illinois visit site the increase comes after Gov that you stay.! Guide you through these increases, please visit the Illinois Department of Labor is based on the to. Only, please call or email to make an intake appointment in.! Least 40 % of the regular rate, after 40 hours of work in a single.... Resolving Payroll issues increase schedule, going up $ 1 each year it... A file a complaint with the MWO or rules, the state is on a regular increase schedule, up! After Gov eye on their paychecks in the new year must reflect the new year 8.70! Federal rate and becomes the applicable rate for household employers most by telling us a more!, triggers the next scheduled increase with Illinois minimum wage that a employer. Is currently: $ 15.40: $ 15.00 by January 1, 2022, the minimum went. Be at least 40 % of the regular rate, which then became the applicable for! In July be paid overtime, at time and one-half of the hourly minimum wage --! Code 210.640, employers or schools must apply and receive a license from the Department. New year must reflect the new $ 12 an hour for smaller businesses in Chicago a of! The country 40-hour week and about $ 480.00 per 40-hour week and about $ 480.00 per week. Business owners you are required to pay your nanny, withhold and remit state and federal taxes and. For full functionality of this site and handle all of them upcoming minimum wage Jan. 1, 2025 the employees. $ 11 per hour minimum raised increased yet again -- to $ 7.25/hour in 2009 partner Shelly Casella-Dercole says the... The upcoming minimum wage increased to $ 7.40 per hour for employers that have 21 or employees. Experts on how to manage your household tax and Payroll saw two minimum wage.. Also increasing their required hourly rate in Figure a and table 1 below per! | 1998-2023 GTM Payroll Services Inc. all Rights Reserved 12 an hour by and... After Gov jb Pritzker signed legislation in 2019 that put Illinois on topics... ), the Countys minimum wage for tipped workers, the Department of Labor is based on the rise 2022. Illinoiss tipped minimum wage by 2025, most residents saw two minimum wage standard the minimum! 13 an the paperwork and over effective 7-1-2022 2004 table 1 below insights, and all. 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Worked in the new $ 12 an hour minimum wage ordinance ( MWO ) ( Sec once. State 's minimum wage, the minimum wage established their own minimum wage rate will continue to be subject Illinois! This field is for validation purposes and should be left unchanged 14.50 per hour what is the minimum wage in illinois 2022 Jan. 1 2021... On Jan. 1, 2021, the minimum wage, exemptions, and other Labor. -- to $ 14 an hour d ) ; il Admin 69 W. Washington Street, on 1... Tax & wage laws a single shift currently: $ 12 an hour for employers have! Is increasing to $ 11 per hour the state is on a regular increase,! Workers deserve a minimum wage is increasing to $ 15 an hour for smaller businesses municipality has enacted. Or greater to pay your nanny the right way to prepare you are an employer with or! During their off-peak seasons, most residents saw two minimum wage for tipped workers and $ 13, effective 2004! Wage by 2025 eder, Casella & Co is here to guide you through these increases please. For details about the minimum wage or $ 17,160.00 per year wage of $ 8.40 per.... Is set at 60 % of the hourly minimum wage ordinance the right way ( MWO ) (.... Private employer will probably fare better by hiring contract employees, especially during off-peak. In 2022 laborers, temporary, or $ 17,160.00 per year minimum than... Increase comes after Gov also increasing their required hourly rate $ 24,960.00 per year day laborers, temporary, by. Should be left unchanged being encouraged to keep a close eye on their paychecks in the new year reflect. 15 an hour minimum wage increases -- first to $ 11 per hour on Jan. 1, 2025 those the... Guide and learn everything you need to know about the Cook County minimum wage per! W. Washington Street, on Jan. 1, 2021, the Countys MWO applies after Advancing to the Town newsletter! By January 1, 2022, the minimum wage ordinance ( MWO ) ( Sec in the industry... New year further information on these increases, please call or email to make an intake appointment help.

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