Tag Archives: minimum wage increase

REMINDER – Chicago Minimum Wage Increases Again and Cook County Minimum Wage Begins Starting July 1st 2017

Contributed by James F. Hendricks, Jr., June 23, 2017

On July 1, 2017, Chicago’s Minimum Wage increases to $11.00 per hour for non-tipped employees and $6.10 for tipped employees (Chicago Municipal Code §1-24). Cook County’s new minimum wage is $10.00 per hour for non-tipped and $4.95 for tipped employees.

Minimum Wage

Street sign that says “Minimum Wage Increase Ahead”

IMPORTANT NOTICE REQUIREMENTS: All employers that maintain a business facility within the geographic boundaries of  Chicago AND/OR are subject to one or more of the license requirements in Title 4 of the Municipal Code of Chicago are covered by Chicago’s Minimum Wage Ordinance and MUST do the following starting July 1st:

  1. Display applicable poster(s) by July 1st
  2. Include a copy of Chicago’s Minimum Wage Poster with the first paycheck issued after July 1st to each employee that is subject to the Ordinance (i.e. works at least 2 hours in Chicago, or at some point may work at least 2 hours in Chicago)

From our prior Chicago Minimum Wage Ordinance post, here are points that you need to know about the Chicago Minimum Wage Ordinance:

  1. Covered Employers: Any individual, partnership, association, corporation, limited liability company, business trust, or any person or group of persons that has at least one employee and (1) maintains a business facility within the geographic boundaries of Chicago AND/OR (2) is subject to one or more of the license requirements in Title 4 of the Municipal Code of Chicago. Cook County: Work in the county, including compensated (sales, delivery, etc.)
  2. Covered Employees: Any employee who works for at least 2 hours in any two-week period within Chicago’s geographic boundaries, including driving through Chicago during work (e.g., that delivery driver that takes Route 94 from Evanston to Gary and gets stuck in rush hour traffic is covered).
  3. Hours subject to Chicago’s Minimum Wage: Chicago’s Minimum Wage only has to be paid for hours worked by the employee when he or she is physically present within the geographic boundaries of Chicago. This includes time spent driving during working hours, but does not include time commuting between home and work.
  4. Non-Tipped Employees’ Hourly Rate: Chicago’s Minimum Wage for non-tipped employees starting July 1, 2017 will be $11.00/hour; and increasing on July 1, 2018 to $12.00/hour; July 1, 2019 to $13.00/hour; and each July 1st thereafter, Chicago’s Minimum Wage will increase by an amount announced by the Commissioner of Business Affairs and Consumer Protection (and, of course, if the CCMW is less than the Illinois or Federal minimum wage, then the highest wage rate applies).
  5. Penalties & Damages: A fine of $500.00 to $1,000.00 per day for each offense that is not corrected. Potential license suspension or revocations and an order to pay restitution to underpaid employees. Additionally, employees can pursue a private cause of action to recover THREE times the underpayment, attorney fees and costs.
  6. Union/CBA Issues: There is no grandfathering for current “in-force” collective bargaining agreements. This means that, depending on the provisions of a current CBA, there could be an automatic increase in all employees’ wages (i.e., if only the lowest paid employee’s rates are defined and each other level is based a percentage higher), or the union could even demand to re-open bargaining mid-contract.

Doing Business in Los Angeles Just Got More Expensive for Employers

Contributed by Heather Bailey

WageOn April 4, 2016, the Los Angeles City Council just voted on their support of increasing California’s allotment of paid sick days for employees to twice the amount given under California’s Paid Sick Leave Law. This means employees would be allowed to earn six paid sick days during the course of the year (as opposed to only 3 under California’s current law). The law still needs to be drafted, but if it is passed, larger employers will need to be in compliance by July of this year, smaller employers (25 or less) would have a year to get fully compliant.

This comes on the heels of LA’s minimum wage increase to $10.50 per hour starting July 1, 2016 with a graduated increase to $15 by 2020. California is looking to increase state minimum wage to $15 per hour by 2023.

Employers should start assessing their current sick leave policies to confirm or adjust accruals accordingly and to determine the toll this will take on operations. Note that whenever federal and state or city law are in conflict, you always follow the law that gives the employee more.