Elk Grove business leaders discuss minimum wage, sick leave proposal

Six local business leaders spoke Tuesday night at Elk Grove Village's regular board meeting to voice their opposition to both the county's and Mayor Craig Johnson's proposed plans to raise the minimum wage during the next five years.

Under Johnson's plan, minimum wage would increase to $9.50 an hour by Jan. 1 and would increase each year with cost-of-living adjustments or by 2.5 percent annually, whichever is less. Johnson's plan is a departure from other suburban leaders who have rejected a Cook County ordinance mandating a sharper increase by July.

The ordinance gradually increases the minimum wage to $13 an hour during the next three years. The first increase to $10 an hour is effective July 1. Illinois' current minimum wage is $8.25 an hour.

Another new county ordinance requires businesses to provide one hour of sick leave per 40 hours of work, which equals five days a year. Johnson proposed five days of sick leave a year instead of requiring employers to track each employee's hours.

As he's done in the past on this issue, Johnson criticized state lawmakers, arguing they should be the ones to set minimum wage laws.

“This is not an issue that we or Cook County should be looking at. The state has shirked its duty,” Johnson said. He also said the action by the county may be challenged in court and eliminated, a result he said he'd welcome.

“I hope the county ordinances are found illegal so that we can go back to following the state law,” Johnson said.

Until that happens, Elk Grove has three options. The village can go along with the Cook County ordinances, opt out or develop its own.

Johnson said after hearing the concerns at a Feb. 16 roundtable with three local business owners and a representative from Cook County Board President Toni Preckwinkle's office, he came up with his own plan. He added that Elk Grove creating its own plan would ensure protection for the many businesses in the village that take advantage of Cook County's tax incentive 6B program. He explained that while the village can opt out of the county's ordinances, 6Bs would have to adhere to them unless the village approves its own plan.

The business representatives came to Tuesday's meeting because Johnson had a discussion of his plan on the agenda. Johnson said he's heard from 19 of the 3,600 businesses in Elk Grove Village. Looking into the small audience at village hall, Johnson said he thought more business owners and residents would have attended.

The business representatives who did attend had more complaints about the sick leave plan than the minimum wage increases. Under the Cook County ordinance, part-time employees could call off work without giving a reason and would get paid — something most of them took issue with.

“The sick leave thing is a real stickler,” Robert Renner, owner of Concept Industries, told the board.

Johnson responded to Renner, saying, “Right now, employees could still call off, they may not get paid but they can still call off.”

Reiner responded by saying “I think this makes it easier for them.”

Sonal Amin, who owns two 7-11 stores in Elk Grove Village, was opposed to both Johnson's minimum wage increase and the sick leave proposal. She said her business is already being hit hard by the county's increased sugar tax and said increasing the minimum wage would lower her net income by 20 percent.

For Pam Simantz, part owner of aerospace manufacturer AJR Industries, the sick pay ordinance was an issue.

“It's vague and poorly written,” Simantz said. “We feel Elk Grove should opt out.”

Ken Jarosch, owner of Jarosch Bakery, also spoke out against both aspects of the plan. Jarosch, who took part in the Feb. 16 roundtable, urged the village board to opt out and to consider taking its opposition a step further.

“I'd encourage Elk Grove to file a lawsuit to challenge the county ordinance,” Jarosch said.

Bill Steele, controller of a local moving company, told the board that while his employer does not have an issue with a minimum-wage increase, he was against the sick leave portion of the plan.

Steve Doerner, whose D@S equipment has been in business for 60 years, said his main complaint was government dictating to the private sector, which Johnson said he agreed with.

Johnson's plan has fewer regulations than the county's ordinance. For example, employers wouldn't be required to submit documentation. Instead, the village would enforce the ordinances based on complaints and provide back pay and fines for violations.

Johnson said he wants to have a vote sometime in April in order to have a plan by May to allow businesses time to adjust to the new rules before July 1.