Minimum Wage Increase
The Chicago Minimum Wage Working Group reported back earlier this week that the minimum wage in Chicago should be raised to $13 an hour by the year 2018 and linked to inflation thereafter.
Let’s break this down and see how it would affect the LZ Area Chamber of Commerce or other similar size businesses.
For a business (like the Chamber) currently paying $10.50 an hour for a part-time job (already $2.25 above the state’s min. wage), a forced $2.50 increase to $13 per hour would equate to $3,250 per year for an employee working an average of 25 hours per week.
To increase payroll over $3,000 for one employee would cause the Chamber to either eliminate other expenses (service or another position) or increase prices (dues, event tickets, etc.) to cover the cost. The potential results of this could mean lower attendance at Chamber events, fewer member, and or possibly a small cost ($10 – $20) to participate in every event and activity.
We would like to hear how a mandated minimum wage increase might impact your business. Please provide your feedback and input.