Full Text of HB3817 98th General Assembly
January
12, 2015
To
the Honorable Members of the
Illinois
House of Representatives,
98th
General Assembly:
I hereby return House Bill 3817 with
specific recommendations for change.
My recommendation is that in addition to the
provisions of the enrolled bill, this legislation would provide for a binding
referendum to be held on April 7, 2015 in each of the State’s election
jurisdictions (generally, equivalent to a county, except for eight (8) Boards
of Election Commissioners for certain municipalities), to raise the minimum
wage in that election jurisdiction. Each election jurisdiction, except for City
of Chicago, will be allowed to decide for themselves whether to raise the
minimum wage for their own communities. The City of Chicago, which has already
enacted an ordinance raising the minimum wage will not be required under this
measure to have a binding referendum.
My specific recommendations for change do
not in any way modify the provisions of House Bill 3817. Upon acceptance of my recommendations,
the provisions of the bill that passed the General Assembly will take effect
along with the measures that I am proposing.
At the November 4, 2014 general election,
66.74% voters supported a Statewide advisory referendum to increase the State
minimum wage to ten dollars ($10) per hour by January 1, 2015 from its current
level of $8.25 per hour.
During the fall legislative session,
although the Illinois Senate passed a law to raise the minimum wage, the House
of Representatives failed even to consider a minimum wage bill before
adjourning sine die. But the House did find time to address other pieces
of legislation. One of the proposals the House did address was a measure to
give a tax benefit to profitable retail businesses that also offer “private
label” credit cards. Yet, helping Illinois working families by raising the
minimum wage was not as high a priority. The House’s failure to address this
paramount issue after hearing the electorate’s clear message undermines
democracy.
We must return to the basic principles of
direct democracy.
Under my recommendations for change, the
people of the State of Illinois would be afforded the opportunity at the April
7, 2015 consolidated election to vote on whether to increase the minimum wage. 109
of the State’s 110 election jurisdictions would hold the binding referendum on
raising the minimum wage, and allow the voters within their jurisdiction to
make the choice. The one exception is that the Chicago Board of Election
Commissioners—which serves only the City of Chicago—will not be required under
my proposal to hold the referendum since the Chicago City Council has already
enacted a minimum wage increase.
Holding a binding referendum in each
election jurisdiction will allow the people of Illinois to enact the policy
they support but which the elected members of the House of Representatives
chose to ignore.
Therefore, pursuant to Article IV, Section
9(e) of the Illinois Constitution of 1970, I hereby return House Bill 3817,
entitled “AN ACT concerning elections.”, with the following specific
recommendations for change:
On Page 8 by inserting immediately below line
26 the following:
“Section 1. Short
title.
This Act may be
cited as the Minimum Wage Increase Binding Referendum Act.
Section 2.
Definitions.
‘Election authority’
means a county clerk or a Board of Election Commissioners, but for purposes of
this Amendatory Act of the 98th General Assembly does not include
the Chicago Board of Election Commissioners.
‘Election
Jurisdiction’ means (a) an entire county, in the case of a county in which no
city board of election commissioners is located or which is under the
jurisdiction of a county board of election commissioners; (b) the territorial
jurisdiction of a city board of election commissioners; and (c) the territory
in a county outside of the jurisdiction of a city board of election
commissioners. In each instance election jurisdiction shall be determined
according to which election authority maintains the permanent registration
records of qualified electors, but for purposes of this Amendatory Act of the
98th General Assembly does not include the Chicago Board of Election
Commissioners.
Section 5.
Referendum.
The State Board of
Elections shall cause to be certified to each election authority a public
question to be submitted to binding referendum at the consolidated election to
be held on April 7, 2015. The question shall appear in the following form:
‘Shall the minimum
wage in [name of election jurisdiction], Illinois for adults over the age of 18
be raised to $10 per hour by July 1, 2015?’
‘A yes vote
indicates that you approve and support enacting a higher minimum wage and a no
vote indicates that you oppose raising the minimum wage.’
The votes on the
question shall be recorded as “Yes” or “No”.
If a majority of
those voting on the question vote “yes” the election authority shall deem the
measure passed and it shall become law for the area within that election
jurisdiction. Upon final canvassing of the results of the referendum, the
election authority shall certify the results from the voters of the election
jurisdictions to the State Board of Elections, who will publish the results on
its publicly accessible website. The increase in the minimum wage takes
effect if approved by the voters of the election jurisdiction upon
certification by the election authority of the results of the referendum to the
State Board of Elections.
Section 10.
Certification.
The State Board of
Elections shall immediately certify the question to be submitted to the voters
of each election jurisdiction under Section 5 to each election authority. The
State Board of Elections may also adopt administrative rules as necessary to
facilitate the implementation and enforcement of the provisions of this
Amendatory Act of the 98th General Assembly.
Section 15.
Conflicts.
In the case that the
provisions of this Act of the 98th General Assembly conflict, contradict or are
otherwise inconsistent with any existing, law, rule, or regulations, the
provisions of this Act control.”
Section 10. The
Minimum Wage Law is amended by changing Section 4 as follows:
Sec. 4. (a)(1)
Every employer shall pay to each of his employees in every occupation wages of
not less than $2.30 per hour or in the case of employees under 18 years of age
wages of not less than $1.95 per hour, except as provided in Sections 5 and 6
of this Act, and on and after January 1, 1984, every employer shall pay to each
of his employees in every occupation wages of not less than $2.65 per hour or
in the case of employees under 18 years of age wages of not less than $2.25 per
hour, and on and after October 1, 1984 every employer shall pay to each of his
employees in every occupation wages of not less than $3.00 per hour or in the
case of employees under 18 years of age wages of not less than $2.55 per hour,
and on or after July 1, 1985 every employer shall pay to each of his employees
in every occupation wages of not less than $3.35 per hour or in the case of
employees under 18 years of age wages of not less than $2.85 per hour, and from
January 1, 2004 through December 31, 2004 every employer shall pay to each of
his or her employees who is 18 years of age or older in every occupation wages
of not less than $5.50 per hour, and from January 1, 2005 through June 30,
2007 every employer shall pay to each of his or her employees who is 18 years
of age or older in every occupation wages of not less than $6.50 per hour, and
from July 1, 2007 through June 30, 2008 every employer shall pay to each of his
or her employees who is 18 years of age or older in every occupation wages of
not less than $7.50 per hour, and from July 1, 2008 through June 30, 2009 every
employer shall pay to each of his or her employees who is 18 years of age or
older in every occupation wages of not less than $7.75 per hour, and from July
1, 2009 through June 30, 2010 every employer shall pay to each of his or her employees
who is 18 years of age or older in every occupation wages of not less than
$8.00 per hour, and from on and after July 1, 2010, every
employer shall pay to each of his or her employees who is 18 years of age or
older in every occupation wages of not less than $8.25 per hour.
(a)(1)(1) Local
Option referendum.
The voters of each
election jurisdiction in the State of Illinois are authorized to increase the
minimum wage applicable to their election jurisdiction pursuant to the
provisions of this Amendatory Act of the 98th General Assembly. For
purposes of this Section 4 of the Minimum Wage Law, “election jurisdiction” has
the same meaning as provided for in Section 2 of the Minimum Wage Increase
Binding Referendum Act
In an election
jurisdiction that approves by a majority vote of the electors of a binding
referendum submitted to the voters at the April 7, 2015 general election in
accordance with the Minimum Wage Increase Binding Referendum Act, the
provisions of this subsection (a)(1)(1) apply within that election jurisdiction
and the provisions of subsection (a)(1) are hereby superseded.
If the voters of the
election jurisdiction approve the referendum authorized in the Minimum Wage
Increase Binding Referendum Act the following becomes effective on the day that
the election authority certifies the result of the referendum:
Every employer shall
pay to each of his employees in every occupation wages of not less than $2.30
per hour or in the case of employees under 18 years of age wages of not less
than $1.95 per hour, except as provided in Sections 5 and 6 of this Act, and on
and after January 1, 1984, every employer shall pay to each of his employees in
every occupation wages of not less than $2.65 per hour or in the case of
employees under 18 years of age wages of not less than $2.25 per hour, and on
and after October 1, 1984 every employer shall pay to each of his employees in
every occupation wages of not less than $3.00 per hour or in the case of
employees under 18 years of age wages of not less than $2.55 per hour, and on
or after July 1, 1985 every employer shall pay to each of his employees in
every occupation wages of not less than $3.35 per hour or in the case of
employees under 18 years of age wages of not less than $2.85 per hour, and from
January 1, 2004 through December 31, 2004 every employer shall pay to each of
his or her employees who is 18 years of age or older in every occupation wages
of not less than $5.50 per hour, and from January 1, 2005 through June 30,
2007 every employer shall pay to each of his or her employees who is 18 years
of age or older in every occupation wages of not less than $6.50 per hour, and
from July 1, 2007 through June 30, 2008 every employer shall pay to each of his
or her employees who is 18 years of age or older in every occupation wages of
not less than $7.50 per hour, and from July 1, 2008 through June 30, 2009 every
employer shall pay to each of his or her employees who is 18 years of age or
older in every occupation wages of not less than $7.75 per hour, and from July
1, 2009 through June 30, 2010 every employer shall pay to each of his or her
employees who is 18 years of age or older in every occupation wages of not less
than $8.00 per hour, and from July 1, 2010, every employer
shall pay to each of his or her employees who is 18 years of age or older in
every occupation wages of not less than $8.25 per hour through June 30,
2015 , and on and after July 1, 2015 every employer shall pay to each of
his or her employees who is 18 years of age or older in every occupation wages
of not less than $10.00 per hour.
(2)
Unless an employee's wages are reduced under Section 6, then in lieu of the
rate prescribed in item (1) of this subsection (a), an employer may pay an
employee who is 18 years of age or older, during the first 90 consecutive
calendar days after the employee is initially employed by the employer, a wage
that is not more than 50¢ less than the wage prescribed in item (1) of this
subsection (a); however, an employer shall pay not less than the rate
prescribed in item (1) of this subsection (a) to:
(A)
a day or temporary laborer, as defined in Section 5 of the Day and
Temporary Labor Services Act, who is 18 years of age or older; and
(B)
an employee who is 18 years of age or older and whose employment is
occasional or irregular and requires not more than 90 days to complete.
(3)
At no time shall the wages paid to any employee under 18 years of age be more
than 50¢ less than the wage required to be paid to employees who are at least
18 years of age under item (1) of this subsection (a).
(b)
No employer shall discriminate between employees on the basis of sex or mental
or physical handicap, except as otherwise provided in this Act by paying wages
to employees at a rate less than the rate at which he pays wages to employees
for the same or substantially similar work on jobs the performance of which
requires equal skill, effort, and responsibility, and which are performed under
similar working conditions, except where such payment is made pursuant to (1) a
seniority system; (2) a merit system; (3) a system which measures earnings by
quantity or quality of production; or (4) a differential based on any other
factor other than sex or mental or physical handicap, except as otherwise
provided in this Act.
(c)
Every employer of an employee engaged in an occupation in which gratuities have
customarily and usually constituted and have been recognized as part of the
remuneration for hire purposes is entitled to an allowance for gratuities as
part of the hourly wage rate provided in Section 4, subsection (a) in an amount
not to exceed 40% of the applicable minimum wage rate. The Director shall
require each employer desiring an allowance for gratuities to provide
substantial evidence that the amount claimed, which may not exceed 40% of the
applicable minimum wage rate, was received by the employee in the period for
which the claim of exemption is made, and no part thereof was returned to the
employer.
(d)
No camp counselor who resides on the premises of a seasonal camp of an
organized not-for-profit corporation shall be subject to the adult minimum wage
if the camp counselor (1) works 40 or more hours per week, and (2) receives a
total weekly salary of not less than the adult minimum wage for a 40-hour week.
If the counselor works less than 40 hours per week, the counselor shall be paid
the minimum hourly wage for each hour worked. Every employer of a camp
counselor under this subsection is entitled to an allowance for meals and lodging
as part of the hourly wage rate provided in Section 4, subsection (a), in an
amount not to exceed 25% of the minimum wage rate.
(e)
A camp counselor employed at a day camp is not subject to the adult minimum
wage if the camp counselor is paid a stipend on a onetime or periodic basis
and, if the camp counselor is a minor, the minor's parent, guardian or other
custodian has
consented in writing to the terms of payment before the commencement of such
employment.
(f)
Effect of Election Jurisdiction Binding Referenda and Home Rule Preemption
(1)
The establishment of a minimum wage that employers must pay their employees is
not an exclusive power of the State and may be exercised concurrently by the
State and also at the election jurisdiction level as provided for in this
Amendatory Act of the 98th General Assembly. Upon referendum
approval of a public question authorizing an increase in the minimum wage in
the election jurisdiction, the minimum wage shall increase according to the
provisions of this Amendatory Act of the 98th General Assembly and
the Minimum Wage Increase Binding Referendum law.
(2)
Paragraph (1) of this subsection (f) shall not apply to Ordinance No.
02014-9680 adopted by the City Council of City of Chicago on December 2,
2014, provided that: (i) the provisions set forth in that ordinance
are not changed by the City Council of the City of Chicago after
December 2, 2014; (ii) the minimum wage required to be paid to employees
subject to Section 1-24-020 of that ordinance beginning July 1, 2019, and each
year thereafter, is no greater than $13.00 per hour; and (iii) the
minimum wage required to be paid employees subject to that
ordinance in occupations receiving gratuities beginning July 1,
2019, and each year thereafter, is no greater than the amount
calculated by the Commissioner of Business Affairs and Consumer Protection of
the City of Chicago by June 1, 2018 pursuant to paragraph (3) of
subsection (a) of Section 1-24-030 of that ordinance. This paragraph (2)
of this subsection (f) is a limitation under subsection (i)
of Section 6 of Article VII of the Illinois Constitution.
With these changes, House Bill 3817 will
have my approval. I respectfully request your concurrence.
Sincerely,
PAT
QUINN
Governor
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