Senator Kimberly Lightford and Representative Norma Hernandez have introduced new legislation aimed at raising Illinois’ minimum wage to $27 per hour by 2032. The proposed bills, SB 3821 and HB 5367, would implement a series of scheduled increases beginning with a jump to $17 per hour on July 1, 2026.
The schedule for the increases is as follows: $17 per hour starting July 1, 2026; $19 per hour on January 1, 2028; $21 per hour on January 1, 2029; $23 per hour on January 1, 2030; $25 per hour on January 1, 2031; and reaching $27 per hour by January 1, 2032. After that date, the minimum wage would be adjusted annually based on the consumer price index but capped at a maximum increase of 2.5% each year.
The legislation also proposes phasing out the tip credit and aligning the minimum wage for employees under age 18 with the same schedule as adult workers. In addition, if Illinois’ unemployment rate reaches or exceeds 8.5%, any scheduled increase in the minimum wage would be suspended until conditions improve.
Noah Finley, State Director of NFIB Illinois, expressed concern about the impact these changes could have on small businesses in the state. “Many small businesses in Illinois are hanging on by a thread,” said Finley. “Illinois’ small business community is already struggling with the current minimum wage and paid-leave mandates. They can only raise their prices so much to offset these additional costs.”
The proposal includes provisions allowing certain special-interest groups to sue employers over alleged violations of minimum wage laws. These groups could receive up to ten percent of any civil penalties collected from employers found in violation, along with attorneys’ fees and related expenses.
