Plotting A Hike In Illinois' Minimum Wage
From Crain's Chicago Business
Wealthy trial lawyers could very well end up being the unsung heroes of Illinois residents who earn only the minimum wage.
Why? It's all about leverage.
Ever since GOP candidate Bruce Rauner was caught saying he would cut the state's minimum wage, or even abolish it altogether, he has claimed that he really wants to increase the minimum wage to $10 an hour, but only if it's tied to things like tort reform and an overhaul of the state's workers' compensation program.
Trial lawyers make their money by suing people and corporations, whether it's a doctor who allegedly committed malpractice, a corporation that allegedly polluted a local water supply or a company that employed a worker injured on the job.
The state's legal system has been kind to them. They don't want change. Tort reform and changes to workers' comp would hit them right where it counts—in the wallet.
By a 2-to-1 ratio, voters supported a nonbinding referendum on Election Day that asked: “Shall the minimum wage in Illinois for adults over the age of 18 be raised to $10 per hour by January 1, 2015?”
The day after the election, Gov. Pat Quinn announced that he wanted to make the “will of the people the law of the land” by pushing for a hike in the current minimum wage of $8.25 an hour during the upcoming legislative session.
Gov.-elect Rauner then demanded that the General Assembly avoid all major issues until he's sworn in Jan. 12, particularly the minimum wage proposal. He repeated his plan to use the minimum wage hike as leverage to obtain much-needed business reforms.
And that's why I expect the Illinois Trial Lawyers Association to lobby heavily for a minimum wage increase. Take away Mr. Rauner's leverage and he'll have to bargain using some other super-popular issue. If the trial lawyers succeed, they won't kill his effort to pass business reforms, but they will at least temporarily hobble it and send a powerful message: “Don't trifle with us.”
Democratic Senate President John Cullerton has said he will consult with his members before committing to raising the minimum wage. If passed before Jan. 1, the increase won't take effect until June 1 according to the Illinois Constitution.
His membership is quite liberal, so it's likely they'll want to go forward.
Read more in our daily News Update...
From Crain's Chicago Business
Wealthy trial lawyers could very well end up being the unsung heroes of Illinois residents who earn only the minimum wage.
Why? It's all about leverage.
Ever since GOP candidate Bruce Rauner was caught saying he would cut the state's minimum wage, or even abolish it altogether, he has claimed that he really wants to increase the minimum wage to $10 an hour, but only if it's tied to things like tort reform and an overhaul of the state's workers' compensation program.
Trial lawyers make their money by suing people and corporations, whether it's a doctor who allegedly committed malpractice, a corporation that allegedly polluted a local water supply or a company that employed a worker injured on the job.
The state's legal system has been kind to them. They don't want change. Tort reform and changes to workers' comp would hit them right where it counts—in the wallet.
By a 2-to-1 ratio, voters supported a nonbinding referendum on Election Day that asked: “Shall the minimum wage in Illinois for adults over the age of 18 be raised to $10 per hour by January 1, 2015?”
The day after the election, Gov. Pat Quinn announced that he wanted to make the “will of the people the law of the land” by pushing for a hike in the current minimum wage of $8.25 an hour during the upcoming legislative session.
Gov.-elect Rauner then demanded that the General Assembly avoid all major issues until he's sworn in Jan. 12, particularly the minimum wage proposal. He repeated his plan to use the minimum wage hike as leverage to obtain much-needed business reforms.
And that's why I expect the Illinois Trial Lawyers Association to lobby heavily for a minimum wage increase. Take away Mr. Rauner's leverage and he'll have to bargain using some other super-popular issue. If the trial lawyers succeed, they won't kill his effort to pass business reforms, but they will at least temporarily hobble it and send a powerful message: “Don't trifle with us.”
Democratic Senate President John Cullerton has said he will consult with his members before committing to raising the minimum wage. If passed before Jan. 1, the increase won't take effect until June 1 according to the Illinois Constitution.
His membership is quite liberal, so it's likely they'll want to go forward.
Read more in our daily News Update...