Chicago unilaterally raises the minimum wage

The Chicago city council approved raising the city’s minimum wage to $13 by mid 2019 starting in next July when the rate will raise to $10 from the current $8.25. The next raise will be to $10.50 in July of 2016, $11 in July of 2017, $12 in July of 2018 and $13 in July of 2019. Subsequently the minimum wage will increase based on the local consumer price index.

There has been a lot of chatter at the state level about increasing the minimum wage state wide but nothing materialized thus far.

There are several ways in eStratEx to increase the employee’s pay rate to match the minimum wage as laws change. It is a little trickier to handle tipped employees whose tipped wages for a day put them below the minimum wage. eStratEx automatically looks up the Federal minimum wage and the State minimum wage and creates an FLSA adjustment when running a payroll to make sure such employees are paid the minimum legal wage.

In the near future we will be extending the functionality to specific localities to accommodate cases like the city of Chicago where the minimum wage will be higher than both the State and Federal minimum wage. This will allow you to process payroll for tipped employees in such localities without having to do any manual adjustments.

 

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