Grundy Reporter

Illinois required its minimum wage raised to $10 on July 1, which was another hit to small businesses during the COVID-19 pandemic. 

Gov. J.B. Pritzker signed a State mandate, which will get the state to a minimum wage of $15 by 2025, a release issued on Illinois Policy said. The raise from $9.25 to $10 on July 1 was the second this year. The first raise was Jan. 1 from $8.25 to $9.25. 

“We are a very small rural town, with 750 people in our whole village,” Melanie McCullough, owner of Bradford Snack Shack in Bradford, Illinois, said to Illinois Policy. “Operating this business is a challenge, with the added burden of minimum wage hikes, all the additional taxes that have been implemented and the concern of the possibility of a progressive income tax coming our way.”

While some businesses like McCullough's have been able to endure the hardships of the pandemic and the minimum raise increase, others haven't been able to survive. Papa Murphy's and Montana Mike's restaurants in Danville were forced to close those doors since they were unable to make ends meet. 

Illinois isn't the only state increasing minimum wages. California small businesses have been hit hard from the coronavirus pandemic and minimum-wage hikes as well. 

But Virginia, which had planned to raise its minimum wage, delayed it. “While I want to make sure we’re taking care of our workers across Virginia, I also want to make sure we come out of this economic crisis in as strong a position as I can,” Virginia Gov. Ralph Northam told Illinois Policy. 

Raising minimum wages doesn't just affect businesses. Illinois taxpayers are also affected when it's raised. When the state reaches the $15 minimum wage, this will add $1.1 billion to state taxes. 

With Illinois' regions all being affected differently by the coronavirus pandemic, the increase in minimum wage also affects each one differently by ignoring their differences. While the intention of raising minimum wage is good, the effect it can have isn't always positive, the Illinois Policy release said. Yes, it can help increase the income of low-income families, but it can also eliminate many jobs as business owners won't be able to keep as many employees.