Are You Ready for a Higher Minimum Wage?
As most of you probably remember, the Chicago City Council passed an ordinance at the end of 2014 that significantly affects most Chicago businesses, including restaurants. The ordinance calls for businesses in the city of Chicago to raise the minimum wage it pays its employees. While the city gave businesses time to prepare for this cost increase, the time is fast approaching to implement this ordinance.
On July 1, 2015, any employers that maintain a business facility within the city of Chicago or have a business license to operate in the city must increase their hourly minimum wage to $10.00. Hourly tipped employees will be bumped up from $4.95 to $5.45. Wage increase will continue through 2019 until the hourly minimum wage reaches $13.00. Below is a table from the City of Chicago’s website that denotes the wage increase by year:
Although there are a few exceptions that allow a business to not comply with this ordinance (which can be found on the City of Chicago website), most businesses will be subject to this new ordinance. It is important that you make the necessary adjustments in your payroll software or talk to your third party payroll provider to make sure your wages are in compliance with this ordinance.
If you have any questions regarding the ordinance or what it might mean to your business, please contact me at [email protected] or 312.670.7444.