Minimum Wage Increase Law May Impact Small Construction Businesses

Senate Bill 1, passed February 19, increases Illinois’ minimum wage to $9.25 per hour stating January 1, 2020, to $10.00 per hour July 1, 2020, and $11.00 per hour January 1, 2021, with continuing increases of $1.00 per year until it reaches $15.00 per hour in 2025. While most construction tradespeople already earn over the $15.00/hour minimum wage, the increase for clerical reception and other office staff could drive up operating costs form small and medium sized contractors, and will need to be passed along as overhead in contractors’ bids on both public and private construction projects. This will likely cause state and local capital improvement appropriations to buy less infrastructure than predicted, and drive up home prices and apartment rents across the state.