Illinois small businesses have expressed concerns about a new bill, HB 5367, which is scheduled for discussion in the House Labor Committee this week. The legislation would gradually raise the statewide minimum wage to $17 per hour by July 1, 2026, and further to $27 per hour by January 1, 2032. After that date, annual increases would be tied to the consumer price index.
The issue has drawn attention due to its potential impact on small business operations across Illinois. Small employers are already facing rising costs and say an additional government-mandated labor cost could lead to job losses and business closures.
“Small business owners are sounding the alarm about the unintended consequences of raising the state’s mandated minimum wage,” said Noah Finley, NFIB Illinois State Director. “Small employers are already managing a variety of rising business costs; the last thing they need is a government-imposed labor cost increase that will only result in fewer jobs and small businesses in the state.”
Several small business owners who responded to an NFIB survey described how HB 5367 could affect their livelihoods. One respondent said: “If I have to pay $27 for minimum wage employees, I will have to reduce the number of employees and raise prices in order to keep my business going.” Another stated: “If minimum wage goes much above $15/hour, we will be forced to close our small business. It is unsustainable. We have already been forced to make drastic changes to remain in business at $15/hr.” Other comments included: “That will kill small businesses…especially in manufacturing where costs are already very high,” and “We are a small, locally owned family business… If this bill passes, we will be liquidating the business, selling the property, and moving to another state.” Additional feedback highlighted worries that increasing wages would force significant price markups or even lead some service providers in smaller towns out of operation.
The proposed legislation also includes phasing out tip credits for certain workers and raising wages for employees under age eighteen. There is a provision suspending scheduled increases if unemployment reaches 8.5 percent or higher. Additionally, HB 5367 allows special-interest groups without direct injury claims against employers accused of violations; these groups could receive ten percent of civil penalties plus attorneys’ fees if successful.
The debate over HB 5367 reflects ongoing discussions among lawmakers and local businesses regarding balancing worker compensation with economic sustainability.
