Senate Quickly Passes Minimum Wage Bill

Perhaps to send a message to Governor Bruce Rauner, the Illinois Senate this week quickly passed out of committee and out of the full Senate a bill to raise Illinois’ minimum wage to $11 an hour by 2019.

Ironically, in his is State of the State address this week, Gov. Rauner said he could support a wage hike to $10 phased in over seven years if lawmakers approve his ideas on reforming worker’s compensation, unemployment insurance and tort reform.

Gov. Rauner’s approach makes sense. If legislators want to increase labor costs on Illinois’ businesses, they must also give them relief in areas that are top cost-drivers in our state.

SB 11, sponsored by Sen. Kimberly Lightford, raises the wage to $11 by 2019 and provides a tax credit on payroll for those small businesses that pay the current minimum wage of $8.25. The bill also prevents local governments from passing their own minimum wage, but allows Chicago to keep their wage at $13 which they passed by ordinance last year.  Chicago would not, however, be allowed to go over $13 despite the fact their ordinance included a COLA.

NFIB opposes a stand-alone minimum wage hike due to the financial burden it will cause.  Unlike state government, businesses have to stick to a budget. There’s only so much money in the bank. If the legislature says businesses have to give their employees a raise, then the businesses are going to have to find the money someplace, and for a lot of them, that’s going to mean cutting hours and getting by with fewer employees.

 

SB 11 passed the Senate 35-18-1 and now goes to the full House for consideration.  The Illinois House did not pass a minimum wage hike last year with Speaker Michael Madigan indicating he did not have the votes.