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Illinois passes minimum wage increase |
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Thursday, 30 November 2006 |
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Both the Illinois House and Senate passed a bill to raise the minimum wage during the final week of veto session, setting the stage for an increase from $6.50 to $7.50 on July 1, 2007. The wage will then increase by $.25 every year until 2010, when it will reach its cap of $8.25. Any further increases would require additional legislative approval.
On November 7, six states voted to raise their minimum wage above the federal level, bringing the total number to 29. Illinois’ minimum wage already surpassed the federal minimum which has not been touched since 1997. Labor unions, community organizations, and religious groups supported the proposal to increase Illinois’ minimum wage. Businesses were the primary opponents, arguing it will force them to layoff workers. But studies have shown that the negative consequences to businesses were minimal when Illinois last raised the minimum wage. According to a new study released by the Economic Policy Institute titled, State minimum wage: A policy that works, “wages are higher and employment is no lower” in states with a higher minimum wage than those without. Congress is expected to finally raise the federal minimum wage when the Democrats take control of both chambers next year. |
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Last Updated ( Thursday, 04 January 2007 )
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