Illinois lawmakers will soon decide whether or not the state’s minimum wage workers deserve a raise, but the issue isn’t as cut and dry as it seems.
On the plus side for workers, the proposed law is one in a string of recent minimum wage changes. In fact, Illinois’ minimum wage rate has been rising steadily since 2006. The latest boost came in 2010, when lawmakers decided to set the rate at $8.25 per hour — a full dollar more than the current federal rate. If this newest proposal is passed, Illinois would have a minimum wage rate of more than $10 per hour — making it the highest in the country.
For full-time minimum wage workers, this increase would raise their salaries by more than 17%. Right now, someone who works 40 hours a week, 52 weeks a year makes about $17,000 per year. Under this proposed rate increase, that same employee would make more than $20,000 per year.
So, what are the cons?
As happy as some workers might be about the potential change, there are plenty of others who aren’t so happy. That’s because higher minimum wage rates mean having to pay higher unemployment insurance rates and more Social Security taxes.
Secondly — and more importantly — small business owners say the increase would increase their labor costs, and they may not be able to afford it. According to some lawmakers, the change may mean that companies can’t afford to open up in Illinois, and they fear it could put the state at a strong disadvantage when it comes to bringing in new businesses and more jobs.