How Will the Illinois $15 Minimum Wage Impact Your Business?
With the February Illinois State Senate vote, the minimum wage in the state is expected to rise to $15 per hour over the next several years. But how will that change impact your business operations? We've taken a look at how this type of action has impacted workers and businesses in other states. Here's a quick look at what we found and what you can expect if the Illinois minimum wage change will impact your company.
There tend to be two opinions on what happens when a state increases its minimum wage drastically. The more common opinion tends to be that when minimum wage increases by a large percentage, jobs are lost. Early numbers when Seattle passed a $15 per hour minimum wage law seemed to show that thousands of jobs were lost, but those who were able to retain their jobs received an average of $19 per week higher, partially because they were able to receive more money per hour despite lower hours, partially because they were finding additional work outside of the Seattle city limits.
Businesses took at a range of different approaches to reduce the impact of the rising minimum wage laws. Some improve automation and digitization in their business to reduce the amount of manual labor that is needed. Others reduce the number of hours in which they're employing minimum wage employees. Some simply accept the impact of the increased minimum wage, but have to economize their businesses in other ways. Many businesses move to a different location where the business laws are more favorable, allowing them to continue operating their business as it currently does. Any of these options should be carefully considered for its feasibility using your company's specific circumstances and situation, preferably by comparing those aspects against a long-term response plan.
By having a grasp of what you can expect as the Illinois minimum wage laws increase to $15 per hour, you can make plans to ensure that your business is not negatively impacted or can minimize the negative impact of this change. But what if you need help creating a solid strategy to get you through the process? The experienced professionals at AccountRely can help. Please feel free to reach out today to get started.