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New Wage And Hour Laws Go Into Effect On July 1

Antonio Caldarone

Before you fire up the grill to celebrate Independence Day, this is a reminder that a number of important laws passed by local and state governments around the country become effective July 1. The Fast Laner previously reported that the City of Chicago passed a Minimum Wage Ordinance increasing the minimum wage for work performed within the City to $10 per hour on July 1.  If an employer takes the tip credit, then the tip credit minimum wage also increases to $5.45 per hour.  The Ordinance applies to any employee who performs at least two hours of work within the City of Chicago during any two-week period.  Employees who work for two or more hours within a two-week period in the City of Chicago must be paid the minimum wage under the Ordinance for the hours worked in Chicago, even if their employer is located outside City limits.  Additionally, employers must provide a notice informing covered employees of the Ordinance with their first paycheck after July 1, and post that notice in the same place they post other mandatory legal notices.  The City of Chicago issued a new notice yesterday, which can be found here, and the City has websites dedicated to the Ordinance here and here.  In Washington, DC, the minimum wage increases to $10 per hour on July 1.  Meanwhile, in California, a new paid sick leave benefit takes effect on July 1; this law applies to any employee (including part-time and temporary employees) hired after January 1, 2015 who has worked at least thirty (30) days.  Employees earn one hour of paid sick leave for every thirty (30) hours worked, which amounts to eight days per year for a full-time employee. Employers must post a notice and give employees individualized notices regarding paid sick leave.  There are also special provisions for carryover of sick leave and the interplay with an employer’s existing PTO policy.  Massachusetts has a similar paid sick leave law that goes into effect on July 1 (but a safe harbor provision extends the period of compliance to January 1, 2016).


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