Thursday, July 1, 2010

New minimum wage law kicks in

Published Jun 30, 2010
The Clinton Herald

FULTON, Ill. — Many Illinois workers will find a little more money in their pockets starting Thursday.

The state’s minimum wage will be raised from $8 per hour to $8.25, a dollar more than neighboring Iowa, which keeps its minimum wage at the federal limit.

The increase comes with some political baggage, as Republican gubernatorial candidate Bill Brady told reporters a higher minimum wage makes Illinois less competitive for businesses looking to create jobs in the state.

Brady had said, if elected, he would lower it to the federal minimum wage, $7.25. But he has since backed off from that idea after criticism from his opponent, Gov. Pat Quinn.

Quinn has lauded the increase, which was signed by his predecessor, former Gov. Rod Blagojevich in 2006.

Then, the general assembly passed an increase from $6.50 to $7.50, under the condition that it would increase each July until it hit $8.25 this year.

Kathy Kingery, manager of the Fulton restaurant, Manny’s Too, said the increase does not affect her business too much.

“I guess my employees like it,” she said, “(but) it shouldn’t affect us. ... The smaller places it might, but we’re busy enough that it won’t hurt us.”

Betty Steinert of Whiteside County Economic Development agreed, saying smaller businesses could feel the pinch of the increase. But it would also make minimum wage workers happy.

“I would think it would increase employee morale,” she said, “That means they’ll have a dollar or two more to put into the economy.”

Steinert said she was not sure if the increase would make Illinois more or less competitive for businesses and workers. She did not know of any figures regarding a possible number of Iowa residents who work in Illinois for the higher wage.

Nor was she sure if whether Brady’s proposed decrease in minimum wage would help or hurt the state, without any data to look at.

But Kingery said a decrease in minimum wage did not seem fair to workers.

“You can’t really live on $8.25,” she said. “I’d rather pay them more and keep them longer, that’s worth more to me.”

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