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HB 2762

Tobacco Products Excise Tax Act

2025 Regular Session Introduced by Geno Chiarelli and 2 co-sponsors

HB 2762 sets Illinois school support staff minimum wages: $20 (2026–27), $21 (2027–28), $22 (2028–29), then CPI-U indexing; IMRF employer contributions counted in salary base.

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Bill Summary · HB 2762

Summary — HB 2762 (School Code: Minimum Employee Salary)

Status (most recent): Re-referred to Rules Committee under Rule 19(a) (March 21, 2025). Introduced in February 2025. Primary sponsors: Rep. Maura Hirschauer and Rep. Lisa Fink; cosponsor Rachel Keshel. Companion bill: SB 1258.

Note: the packet provided includes an unrelated Arizona statute excerpt (child custody). The summary below addresses HB 2762 as introduced in Illinois (School Code amendment).

Purpose / Intent

HB 2762 establishes a statutory minimum hourly wage for certain school employees in Illinois and requires automatic annual adjustments after the initial phase-in. The measure aims to raise base pay for educational support staff to improve compensation, retention, and recruitment.

Key Provisions

  • Adds Section 24-8.2 to the Illinois School Code.
  • Definition: “Employee” covers school district or joint agreement employees who provide educational support services, including (but not limited to) custodial staff, transportation employees, food service workers, classroom assistants, paraprofessionals, and administrative staff. The bill also references other educator definitions in the School Code (Section 21B-20).
  • Minimum hourly rates:
    • $20.00 per hour for the 2026–2027 school year
    • $21.00 per hour for the 2027–2028 school year
    • $22.00 per hour for the 2028–2029 school year
  • Indexing after 2028–29: For each subsequent school year, the minimum hourly rate equals the previous year’s minimum increased by the percentage change (if any) in the Consumer Price Index for All Urban Consumers (CPI‑U, all items) for the previous school year, as published by the U.S. Department of Labor.
  • Compensation base: An employee’s “salary” for purposes of this section includes amounts paid by the district or joint agreement on behalf of the employee as employer contributions to the Illinois Municipal Retirement Fund (IMRF).
  • Applicability: Applies to school districts and joint agreements operating under Section 10‑22.31 of the School Code.
  • Effective date: Act takes effect upon becoming law.

Who Is Affected

  • Directly: Support staff employed by Illinois school districts and qualifying joint agreements (custodians, bus drivers, food service workers, paraprofessionals, classroom aides, administrative support, etc.).
  • Indirectly: School district budgets, labor negotiations, and local taxpayers; potential impacts on staffing patterns and contracted service providers.

Fiscal and Procedural Notes

  • Mandates/Costs: The bill increases payroll costs for districts and joint agreements. The document notes the State Mandates Act — the measure “may require reimbursement,” indicating potential state fiscal implications or claims under the mandates process.
  • Implementation timeline: First required minimum applies to the 2026–2027 school year; indexing begins after 2028–29.
  • Legislative status: Introduced and assigned to committee; currently re-referred to Rules Committee (Rule 19(a)) as of March 21, 2025.

Potential Impacts / Considerations

  • Budgetary pressure on local school districts and joint agreements to meet higher wage floors; districts may need to reallocate funds, use reserves, or seek additional revenue.
  • Likely positive effects on low-wage school employees’ earnings, retention, and recruitment.
  • The CPI‑U linkage provides automatic inflation protection but could further increase future district costs.
  • Including employer IMRF contributions in “salary” raises the effective compensation base covered by the minimum, which may broaden the fiscal effect.

If you want, I can draft a brief fiscal-impact checklist for school districts or compare HB 2762 to related legislation (SB 1258).

Compiled from official sources — confirm details with the bill’s official record.

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