Illinois’ minimum wage increases to $14 an hour Monday
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[January 02, 2024]
By Donna Rolando | The Center Square contributor
(The Center Square) – Illinois’ minimum wage will increase Monday to
nearly twice the federal minimum and well above most neighboring states.
Non-tipped workers on the lowest rung of the wage ladder will start the
new year on Jan. 1 with a raise to $14 an hour. It’s the sixth increase
for Illinois since 2019. The wage will increase to $15 an hour in 2025.
The federal minimum wage is $7.25.
Julie Yurko, president and CEO of the Northern Illinois Food Bank, said
any financial relief is especially vital since the pandemic, which has
driven up the number of food network users by 80,000 a month.
“I remember back in 2019 when [Gov. J.B. Pritzker] came out with his new
plan for minimum wage, and that was to get it to $15 an hour by 2025,
which is fantastic,” she said. “The truth about hunger in America is
that it is an economic issue. It is really tough for many of our working
families to make ends meet. Their wages are not keeping up with the cost
of housing, food, education, medicine and health care.”
Business and some policy groups say a rising minimum wage will lead to
higher consumer costs, already elevated by inflation, job losses and
fewer hours for many workers.
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Starting Jan. 1, tipped worker wages increase to $8.40, up from $7.80.
Meanwhile, youths who work less than 650 hours annually will see a rise
to $12 an hour.
As hopeful as that sounds, Yurko said all this is not likely to reduce
demands at the Northern Illinois Food Bank, which welcomes 550,000
people to its network monthly for support. This is a 70% increase since
pre-pandemic times, according to Yurko.
“I don’t think it’s going to have a meaningful impact on the number of
folks we see coming,” she said. “While it will help, the economic issue
of having a job that pays a living wage remains.”
Others warn of the economic impact on small businesses and consumers
from the wage increase.
“A minimum wage hike will bring higher costs to businesses, which are
usually passed on to consumers in the form of higher prices. While
larger businesses can often absorb higher labor costs, unfortunately,
these increases fall hardest on small businesses,” said Bryce Hill,
director of fiscal and economic research at the Illinois Policy
Institute. “Illinois already has an unfriendly business climate. Adding
to the financial burden might deter new businesses and drive out
existing employers, which may end up costing Illinoisans their jobs.”
The minimum wage is $7.25 an hour in neighboring Indiana, Iowa, Kentucky
and Wisconsin. Missouri’s minimum wage increases to $12.30 on Monday. |