February 9, 2026
The proposal would incrementally increase the statewide minimum wage in Illinois
Senator Kimberly Lightford (District 4) and Representative Norma Hernandez (District 77) filed legislation to raise Illinois’ minimum wage to $27/hour.
SB 3821/HB 5367 would incrementally increase the statewide minimum wage, jumping to $17/hour on July 1, 2026. It would hit $27/hour on January 1, 2032, and then every year afterwards increase with the consumer price index.
The minimum wage would increase according to the following schedule:
– July 1, 2026: $17/hour
– January 1, 2028: $19/hour
– January 1, 2029: $21/hour
– January 1, 2030: $23/hour
– January 1, 2031: $25/hour
– January 1, 2032: $27/hour
– January 1, 2033, and all future years: Increase to match the consumer price index (capped at 2.5%)
“Many small businesses in Illinois are hanging on by a thread,” said NFIB Illinois State Director Noah Finley. “Illinois’ small business community is already struggling with the current minimum wage and paid-leave mandates. They can only raise their prices so much to offset these additional costs.”
The legislation would also phase out the tip credit and increase the minimum wage for employees under the age of 18 to align with the schedule outlined above.
If the unemployment rate hits 8.5%, the scheduled minimum wage hike would be suspended.
The legislation also permits uninjured special-interest groups to sue employers for alleged violations. These groups would be eligible to pocket 10% of any civil penalties, plus attorneys’ fees and expenses from employers.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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