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One to Keep An Eye On: Senate Bill 3396 (Illinois)


As with many labor and employment law related cases (and bills) being litigated around the country, there are always a few that stand out.  This is one to keep an eye on.


In recent weeks, Illinois Republican State Senator Chuck Weaver introduced a bill, Senate Bill 3396, which would divide the state into six zones and allow the minimum wage rate to fluctuate below the statewide $15/hour minimum wage rate, set to take effect by 2025.  (Does this remind anyone of former Governor Bruce Rauner’s right to work zones?  Granted Senate Bill 3396 concerns minimum wage rate zones while Governor Rauner’s proposal involved right to work zones...somewhat similar.)

Senate Bill 3396 would allow municipalities or counties, by a vote of the local governing body, to opt out of the statewide minimum wage rate and opt in to a regionally adjusted minimum wage rate that would be statutorily authorized and statutorily regulated.  Notably, there would be a sliding scale in place so that regions of the state with historically low unemployment or higher cost of living would be required to stay closer to the statewide minimum wage rate.  (Note, however that Cook County and Chicago would be barred from opting out of the statewide minimum wage rate.)  Senate Bill 3396 has been couched as a solution to the problem many small businesses in the state are grappling with:  how to afford the rising labor costs without drastically cutting their workforce or closing altogether.  For instance, if a certain county voted to opt out and had a cost of living 30% less than the rest of the state, those workers could receive 30% less than the statewide minimum wage rate.

Democratic Governor J.B. Pritzker has been critical of the legislation, stating that if one worker in the state was “worth” the $15/hour wage rate, then every worker in the state should be “worth” the $15/hour wage rate.  Other Democrats have argued that while the legislation might provide a solution, it would be more appropriate to instead offer incentives to help support businesses in parts of the state that will struggle to pay their workers in accordance with the new wage rate.  While this legislation was only just introduced, there will likely be a great deal of consideration and debate on the matter both in committee and in the General Assembly.  However, with Democrats having majority control of the General Assembly (and a Democratic Governor), unless they want to work with Republicans, this legislation might not have the legs to get very far.


For additional information:  https://www.wgil.com/2020/02/25/weavers-bill-lets-local-governments-set-minimum-wage-based-on-region/

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