UP UP and AWAY..and so goes the IL Minimum Wage

Contributed by Julie Proscia

Minimum wage may go up in the state of Illinois and your immediate response is required. The Senate Executive Committee is set to consider a substantial and annual increase in the Illinois minimum wage and a committee vote may be scheduled as early as this week.

The amendments that SB 1565 proposes are the following:

  1. Increase Illinois’ minimum wage from $8.25 per hour to $8.75 per hour and then increase it every July 1st thereafter by $.50 plus the rate-of-inflation. It would continue to increase by fifty-cents plus the rate-of-inflation until such time as the minimum wage reaches an inflation adjusted level equivalent to $1.60 in 1968. By that measure, in 2011, the minimum wage would have been $10.27. After it reaches the 1968 equivalent, it will continue to increase annually by the rate of inflation.
  1. Deletion of training wages. Illinois currently allows employers to pay an employee $.50 less than the minimum wage for the first 90-days of employment.
  1. Deletion of teen wage. Illinois currently allows employers to pay an employee under 18 years of age $.50 less than the minimum wage.
  1. Deletion of the tip credit. Illinois currently allows employers to take a tip credit of 40%.
  1. Deletion of the exemption for immediate family members.

The proposal for the change in the minimum wage is significant and will impact many small employers. If you would like to comment on this proposal immediately contact your representative in the Illinois Senate.