Illinois Gov. Bruce Rauner vetoed last week a bill that would have raised the state’s minimum wage to $15 per hour.
The minimum wage remains at $8.25, where it has been since 2010. The bill would have gradually increased it to $15 per hour over the course of five years.
National Federation of Independent Business (NFIB) applauded Rauner’s veto.
“Raising the minimum wage to $15 an hour would hurt the very people lawmakers say they’re trying to help. Small businesses will bear the brunt of the cost, and their employees will pay the price in the form of fewer jobs and fewer opportunities,” NFIB State Director Mark Grant said.
According to the NFIB Research Center, raising the state minimum wage to $15 an hour would result in 93,000 fewer jobs and reduce Illinois’ real output by over $56 billion over the next 10 years.
“If the government dictates an increase in the cost of labor, employers have two options,” Grant said. “They can raise prices, or they can try to get by with fewer workers. If you can’t afford as many workers, you’re going to be very careful about the workers you do hire. You’re going to want employees you know can do the job. You can’t afford to take a risk on people with little or no experience.”
While the legislation includes a tax credit for employers to help offset higher labor costs, Grant said the credits would not make up for a nearly 82 percent increase in the state minimum wage.