Illinois House Bill HB2032

Illinois 2023-2024 Regular Session

• Introduced: 2/1/23
• Refer: 2/23/23
• Refer: 2/1/23
• Refer: 3/10/23

Caption

LOW-WAGE EMPLOYER-RECOUP COSTS

Impact

The implementation of HB2032 is expected to have significant repercussions on both employers and employees within Illinois. Employers who fall into the category of paying low wages will face additional financial burdens due to the imposed surcharge. This financial incentive aims to motivate businesses to increase their wage offerings to avoid penalties, thereby potentially improving the overall earnings for low-wage workers throughout the state. The bill is also designed to promote adherence to living wage standards, enhancing economic stability for low-income households.

Summary

House Bill 2032, also known as the Low-Wage Employer Cost Recoupment Act, seeks to create financial accountability for employers who pay their employees wages that are low enough to disqualify them from receiving federal Supplemental Nutrition Assistance Program (SNAP) benefits. The bill mandates that the Department of Labor impose a surcharge on these employers, calculated based on the annual value of SNAP benefits that a single individual would qualify for, multiplied by the number of eligible employees. The intent behind this legislation is to address income inequality and encourage employers to raise wages for low-income earners.

Contention

Notable points of contention surrounding HB2032 focus on the fairness and practicality of imposing a surcharge on employers. Critics argue that this could inadvertently incentivize employers to reduce their workforce or limit hiring to avoid the additional costs associated with the surcharge. Proponents of the bill contend that the current wage structures necessitate intervention, as many workers struggle to meet basic needs under existing compensation levels. The debate highlights broader conversations about wage standards, employer responsibilities, and the role of government in regulating labor practices.