Will Illinois Follow the Minimum Wage Trend with This Bill?
The rising minimum wage trend continues to work its way across the United States, and the Illinois minimum wage may not escape this trend. A new bill being handed to Governor Pritzker will raise the state's minimum wage to a total of $15 per hour by 2025. But what's involved in the bill and how will it impact your company's bottom line? Here's a quick look at the bill to help get you started.
Currently, the Illinois minimum wage sits at $8.25, which many feel does not provide a living wage, especially in urban areas. Senate Bill 1 is poised to move the minimum wage incrementally from its current level to $15 per hour over the next few years. Despite calls from business groups and Republicans to set a lower wage outside of the Chicago metropolitan area, the bill sets one minimum wage across the entire state.
Despite concerns that the bill would hurt rural and suburban businesses, House Speaker Michael Madigan, a Democrat from Chicago, expects that the bill will go to the governor without any changes. Though minimum wage workers applaud the bill, the change may lead to further job automation, costing jobs across the state. These employees are often pushing for unions to protect their jobs, while business owners are focusing on adding automation to reduce the need for higher-cost labor.
Don Welge, owner of manufacturing company Gilster-Mary Lee, stated that if wages increase, automation will increase, reducing low-skill minimum wage jobs. “That group would be hurt the most,” Welge noted. “The governor thinks he’s helping that group. He’s not helping that group. He’s hurting that group very greatly.” There are some temporary tax credits that are included in the bill to help offset the higher costs, but business owners don't think the bill goes far enough, despite provisions for lower pay for workers under 18.
What happens with this Illinois minimum wage bill is still uncertain, but the growing minimum wage trend can cause serious issues for your company's bottom line. Fortunately, the business experts at AccountRely are ready to help you find the right solutions for your company. Why not reach out today to get connected to the right specialist to determine a business strategy for your business?