Minimum wage increase may negatively affect small businesses

SPRINGFIELD, Ill. (WICS/WRSP) — The minimum wage in Illinois is set to increase to $10 an hour on Wednesday, July 1.

However, it might be hard for some businesses to increase wages while trying to recover from the pandemic.

"Overall, I think it's a really good idea, except I think there's going to be some fallout from some businesses," Recycled Records Owner Mark Kessler said.

Kessler thinks it may be hard for some businesses to increase wages because most aren't seeing the sales they're used to.

"When they implemented this, they didn't realize they were going to be in the middle of a pandemic and we were going to have no tourism and no conventions," Kessler said.

All of Kessler's employees make at least $10 an hour already, so he won't have to increase pay until January.

"It will affect us, but I think we'll survive it," Kessler said.

However, Illinois Chamber of Commerce CEO Todd Maisch said some businesses may not be able to handle the pay increase.

"There will be businesses who say, 'You know what, this is the difference between me reopening or not reopening,' and others say, 'You know what, I'm going to bring back two fewer people because I've got to pay the higher wage and I can't afford it right now,'" Maisch said.

The minimum wage increase may have a negative impact, especially since many businesses are reopening with limited capacity.

"A lot of our small businesses that are going to be paying the minimum wage are struggling to bring workers back when they're only allowed to have 25, 50 percent capacity in their places of work," Maisch said.

Kessler said the pandemic has hurt many downtown Springfield businesses.

"It's starting to hit, sometimes it takes a while for this to hit," Kessler said. "If there's less foot traffic down here, it's not good."

The minimum wage is set to increase until it hits $15 an hour in 2025.