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Labor Compliance and Minimum Wage Updates: July 2022

Labor Compliance and Minimum Wage Updates: July 2022

2022 is halfway over, and that means time for a new slate of state and local regulations coming into effect. We’re big on helping your business maintain payroll and labor compliance, so we’ve laid out every U.S. jurisdiction upping their minimum wage, tip credits, and tipped cash wage rates starting July 1, 2022.

Related: Don’t see your state(s) or localities listed below? Check if there was an update earlier this year.

States

Four states will increase minimum wages across the board, with Nevada and Oregon further specifying based on select criteria.

StateNew Minimum WageNew Tip CreditNew Tipped Cash Wage
CT$14.00$5.77/$7.62¹$6.38/$8.23¹
FL²$11.00$3.02$7.98
NV (without benefits)$10.50
NV (with benefits)$9.50
OR (Portland Metro)$14.75
OR (Urban counties)$13.50
OR (Rural counties)$12.50

  1. Connecticut divides tipped credits and tipped cash wages between bar and service occupations (listed respectively)
  2. Effective 9/30/22

Cities, Counties, and Municipalities

Many local governments will enact their own minimum pay regulations on July 1, so read this list over to ensure labor compliance remains top-of-mind for locations in affected jurisdictions.

MunicipalityNew Minimum WageNew Tip CreditNew Tipped Cash Wage
Alameda, CA$15.75
Berkeley, CA$16.99
Emeryville, CA$17.68
Fremont, CA$16.00
Foster City, CA$15.75
Long Beach, CA
(Hotels with 100+ rooms)
$16.73
Long Beach, CA
(Concessions at Airport
or Convention Center)
$16.55
Los Angeles, CA$16.04
Los Angeles, CA
(Hotels with 150+ rooms)
$18.17
Los Angeles County, CA$15.96
Malibu, CA$15.96
Milpitas, CA$16.40
Pasadena, CA$16.11
San Francisco, CA$16.99
Santa Monica, CA$15.96
Santa Monica, CA
(Hotels with 100+ rooms)
$18.17
West Hollywood, CA
(1-49 employees)
$16.00
West Hollywood, CA
(50+ employees)
$16.50
West Hollywood, CA
(Hotel workers)¹
$18.31
Washington DC$16.10 $10.75 $5.35
Cook Co, IL$13.35 $5.95²$7.40
Chicago, IL (4-25 employees)$14.50 $5.80 $8.70
Chicago, IL (26+ employees)$15.40 $6.16 $9.24
Montgomery Co, MD
(<10 employees)
$14.00 $10.00 $4.00
Montgomery Co, MD
(11-50 employees)
$14.50 $10.50 $4.00
Montgomery Co, MD
(51+ employees)
$15.65 $11.65 $4.00
Minneapolis, MN
(1-100 employees)
$13.50
Minneapolis, MN
(101+ employees)
$15.00
St Paul, MN
(<4 employees
and revenue <$500K)
$10.75
St Paul, MN (5-100 employees)$12.00
St Paul, MN
(100-9,999 employees)
$13.50
St Paul, MN (10,000+ employees)$15.00
Houston, TX$14.00 $5.12 $8.88
(Airports: Bush, Hobby,
Ellington)³

  1. Includes restaurants within a hotel
  2. Not every city is required to comply with the Cook County, IL tipped credit minimum. Individual lookup will be necessary
  3. Effective 10/1/22

A Further Note on Chicago, IL

Effective July 1, 2022 Chicago has updated its Fair Workweek law, applicable to all employees with flexible schedules working in certain hospitality and service industries. Covered employees include

  • Hourly employees earning up to$29.35/hour or
  • Salaried employees earning up to $56,381.85/year, and
  • Employer with at least 100 employees across global locations
    • For restaurants, these numbers are 250 employees and 30 locations

These covered employees have the following protections.

  • Fourteen-day advance notice of work schedule
  • A right to decline initially unscheduled hours
  • For changes made to the schedule after the posting deadline (14 days) employees will receive Predictability Pay
  • A right to rest — employees can decline a shift with work hours that begin fewer than 10 hours after the end of previous day’s shift. If they accept the shift, they will receive premium pay at 1.25 times for the entire shift

Manually maintaining payroll and labor compliance can feel overwhelming when you go it alone, especially as more municipalities consider complex Fair Workweek laws similar to the ones in Chicago. Working alongside an expert, whether human or technological, empowers your managers with the resources to ensure accurate payroll while avoiding the fines and lawsuits of noncompliance.

Fourth’s HR and Payroll services, along with HotSchedules Time & Attendance, automatically update with all the new minimum wage rates, so customers of either won’t have to worry about making cumbersome adjustments to payroll procedures every time there’s an update.

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