Min. wage bumps up

By Andy McMurray

DeKalb’s minimum wage earners will see their paychecks grow larger when the Illinois minimum wage hike becomes effective Jan. 1.

The minimum wage has been $5.50 per hour since Jan. 1, 2004. It will increase to $6.50 on Jan. 1, 2005, said Anjali Nayyar-Julka, spokeswoman for the Illinois Department of Labor.

The Department of Labor is planning an outreach program during the next month to inform the public of the law’s changes, she said.

Illinois joins 12 states with mandated increases in the minimum wage, exceeding the $5.15 per-hour federal standard, Nayyar-Julka said.

“This law improves the economic standing of nearly half a million employees statewide and benefits employers as well in terms of worker productivity and higher sales,” she said.

In August 2003, Gov. Rod Blagojevich signed the increase into law.

The legislation also increased the minimum wage for tipped workers by 60 cents from $3.30 per hour to $3.90 per hour, Nayyar-Julka said.

The minimum wage for tipped workers cannot exceed 40 percent of the minimum wage rate, Nayyar-Julka said.

According to some, the minimum wage is not how an employer determines what to pay a worker.

Michael Peddle, NIU political science professor, said wages are a reflection of an employee’s productivity and value to an employer.

“Wages increase as a person’s education and skills increase,” he said.

By increasing education level and minding workplace norms, such as punctuality, wages will increase, Peddle said.

Local business owners and managers showed few reservations about the wage hike.

Pete Matariangas, manager of Lukulos Restaurant, 1101 W. Lincoln Highway, said he was not sure how the business would deal with the wage increase.

“I am sure we will have to pay a little more than that,” Matariangas said.

Lukulos employs about 25 people and already pays employees more than minimum wage in an effort to ensure quality work, he said.

At Sam’s Family Restaurant, 4515 North St. in Cortland, owner Sam Elmazi said he did not think the increase would be that big of a deal.

“I think it’s good,” he said. “We need to increase the minimum wage.”

Federal poverty level 2004:

Family of four: $18,850 per year

Single: $9,310 per year

Gross income at federal minimum wage level: $10,712

Gross income at current state minimum wage level: $11,440

Gross income at new state minimum wage level: $13,520

(working 40 hours per week, 52 weeks a year)

Source: Department of Health and Human Services and Office of Gov. Rod Blagojevich.