Chicago Minimum Wage Increased Again On July 1, 2016, And Updated Notice Must Be Given To Employees

As previously reported in The Fast Laner, the Chicago Minimum Wage Ordinance incrementally increases each on July 1 of each year until it reaches $13.00 per hour in 2019. Therefore, as a reminder, effective July 1, 2016, employers with employees working within the city limits of Chicago were required to raise the minimum wage to $10.50 per hour. For employers taking the tip credit, the minimum tip credit wage increased to $5.95 per hour. The increase in the minimum wage includes employees who work more than two hours in any two-week period within the City of Chicago, including employees making deliveries, engaging in sales, attending meetings, and traveling for work (except regular commuting to/from work), even if the employer’s location is outside the City of Chicago. Additionally, employers must advise employees of the increase in the minimum wage and their rights under the Chicago Minimum Wage Ordinance with the first paycheck after July 1, 2016. A copy of the Notice to Employers and Employees can be found here. Employers taking the tip credit must also provide employees with a supplemental tip credit notice advising the employees of the increase in the tip credit rate, as well as the other notice requirements for taking the tip credit under the Fair Labor Standards Act.