minimum

Minimum Wage Up to $10 an Hour

Illinois’ minimum wage will get a 75-cent bump today. Minimum wage workers will now make $10 an hour, an increase from the previous $9.25. The raise is part of a years-long plan to move the state to a $15 minimum wage by 2025.

Courtesy of State Representative Anne Stava-Murray

They’ll get to that rate by increasing the wage by $1 per hour at the start of each year.

State Rep Reaction

Anne Stava-Murray, state representative of Illinois’ 81st district, which includes part of Naperville, posted on Facebook, “It’s not yet a living wage, but it’s progress and this progress will continue until we get to $15 an hour for most by 2025, which still won’t be a living wage in too many areas of our state.”

Others Have Concerns

However, the Naperville Area Chamber of Commerce says there could be some challenges for local business owners who might already be struggling due to revenue loss from the COVID-19 pandemic.

According to a late May survey done by the chamber among its members, 68% of responding businesses expected to see at least a 10% loss in revenue due to COVID-19. Thirty-one percent will see revenue losses of at least 31%, and 16% of businesses will bring in less than half their expected revenue.

The same survey showed 26% of businesses will not be able to operate beyond 12 months with anticipated revenue losses due to safety guidelines. The NACC has not conducted a survey regarding how the minimum wage increase could affect local businesses.

“These results underscore the magnitude of the anticipated financial losses due to COVID-19, so any additional costs due to minimum wage increase will be challenging for our business community as well as our non-profits,” wrote NACC Director of Government Affairs Reba Osborne in an email.

Other Hourly Workers Also Affected

Another likely outcome of the minimum wage increase is that many other hourly workers might also see an increase.

“For example, someone who has built longevity with a company and has had incremental salary increases would not expect to remain at their earning level while entry level workers’ wages increase and close the gap of differentiating factors,” wrote Osborne.

Exceptions

There are exceptions to the rule for tipped workers and those under 18 years old working less than 650 hours per calendar year. Tipped workers saw a bump from $5.55 an hour to $6 an hour. That wage will gradually increase to $9 an hour by 2025. Youth workers did not see a wage increase, but their $8 an hour minimum wage will go up to $13 an hour by 2025.

Naperville News 17’s Casey Krajewski reports.

 

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