Tech Flex: August, 2017 Volume VIII

Transcription

1 Tech Flex: August, 2017 Volume VIII 1

2 Tech Flex: June, 2018 Volume VI Topics Covered In This Issue The topics covered in this issue are: Benefits: Leave: Definition of Health Benefit for Nevada's Minimum Wage Law Determined by Nevada Supreme Court Duluth Minnesota Enacts Paid Sick Leave New Pregnancy Accommodations Law Enacted in South Carolina San Francisco Updates Guidance on Paid Sick Leave Ordinance Payroll: IRS 2019 Form W-4 Represents Major Changes to Payroll Minimum Wage Increase for Workers Who Care for People with Disabilities in Connecticut Georgia Revises Wage Garnishment Limits Michigan Modifies Pay Frequency Requirements for Monthly Paid Employees New Hampshire Amends Pay Frequency Requirements Reminder Oregon Transit Tax Becomes Effective July 1, 2018 Vermont Governor Vetoes Minimum Wage, Paid Family Leave Bills Minimum Wage to Increase in U.S. Virgin Islands Emeryville, California Increases Minimum Wage Western Springs Opts Back Into Cook County Minimum Wage and Sick Leave Ordinances Seattle Enacts and then Repeals Employer Hours Tax July 1, 2018 Minimum Wage Increase Reminder 2

3 Tech Flex: June 2018 Volume VI 3 DEFINITION OF HEALTH BENEFIT FOR NEVADA'S MINIMUM WAGE LAW DETERMINED BY NEVADA SUPREME COURT The minimum wage law in Nevada currently requires an employer to pay employees $8.25 per hour but only $7.25 if the employer provides the employee the opportunity to elect qualifying health benefits. The Nevada Supreme Court was asked to clarify what constitutes 'health benefits' for purposes of paying Nevada's lower-tier minimum wage. On May 31, 2018, the Nevada Supreme Court determined in MDC Restaurants, LLC v. The Eighth Judicial Dist. Court, No Nev., that in Nevada the minimum wage law requires an employer who pays one dollar per hour less in wages to provide a benefit in the form of health insurance at least equivalent to the one dollar per hour in wages that the employee would otherwise receive. DULUTH MINNESOTA ENACTS PAID SICK LEAVE On May 29, 2018, the Duluth City Council passed an Earned Sick and Safe Time ordinance (Ordinance No ). This ordinance amended the Duluth City Code by adding a new Chapter 29E entitled Earned Sick and Safe Time. This ordinance takes effect on January 1, Below are some of the highlights of the ordinance. Covered Employers Employer is defined as an individual, corporation, partnership, association, nonprofit organization or a group of persons who has 5 or more employees whether or not the employees work in the city. The number of employees is determined based on the average number of employees per week during the previous calendar year. Absent a contractual agreement stating otherwise, a temporary employee supplied by a staffing agency or similar entity will be considered an employee of the staffing agency for all purposes of Ordinance No For purposes of Ordinance No , employer does not include: The United States government; The state, including any officer, department, agency, authority institution, association, society, or other body of the state including the legislature and the judiciary; or Any county or local government except the city of Duluth. Covered Employees Employee is defined as any person who is: employed by an employer who performs work within the geographic boundaries of the city for more than 50 percent of the employee s working time in a 12-month period; or 3

4 Tech Flex: June 2018 Volume VI 4 is based in the city of Duluth and spends a substantial part of his or her time working in the city and does not spend more than 50 percent of their work-time in a 12-month period in any other particular place. For the purposes of Ordinance No , employee does not include the following: Independent contractors; Student interns; Seasonal employees; and Any person entitled to benefits under or otherwise covered by the federal Railroad Unemployment Insurance Act, 45 U.S.C. Sections 351 et.seq. Accrual & Use Accrual From the date earned sick and safe time begins to accrue for an employee, the employee must accrue one hour of earned sick and safe time for every 50 hours worked. Accruals must be in whole, not fractional, hours. Employers are to permit an employee to accrue up to 64 hours of earned sick and safe time per calendar year, as defined by the employer. Calendar year means a consecutive twelve-month period as determined by an employer and may be based on an employee s employment anniversary date. An employer may satisfy the requirements via frontloading by providing at least 40 hours of earned sick and safe time following the initial 90 days of employment for use by the employee during the first year, and providing at least 40 hours of earned sick and safe time at the beginning of each subsequent year. Use After 90 calendar days of employment, employees may use up to 40 hours of earned sick and safe time each year if they are unable to work all or part of a scheduled shift. Carryover Limit Employers must permit an employee to carry over up to 40 hours of earned but unused sick and safe time into the following year. If an employee is rehired by an employer within 6 months following separation of employment from that employer the rehired employee may use any earned sick leave available to that employee at the time of separation. Rate of Pay Requirements An employer must compensate an employee for used sick and safe time at the employee's standard hourly rate, for hourly employees, or an equivalent rate, for salaried employees. Compensation does not include lost tips or commissions. Compensation is required only for hours that an employee is scheduled to have worked. 4

5 Tech Flex: June 2018 Volume VI 5 Notice Requirements Employers must give notice of the following: Employees are entitled to earned sick and safe time; The amount of earned sick and safe time; The terms of its use guaranteed under this chapter; That retaliation against employees who request or use earned sick and safe time is prohibited; and That each employee has the right to file a written complaint to the city clerk if earned sick and safe time as required by this section of Chapter 29E is denied by the employer or the employee is retaliated against for requesting or taking earned sick and safe time. Pay Statement Requirements There are no pay statement requirements provisions at this time. For a copy of the ordinance please click on the link provided below. NEW PREGNANCY ACCOMMODATIONS LAW ENACTED IN SOUTH CAROLINA South Carolina Governor Henry McMaster has signed into law the South Carolina Pregnancy Accommodations Act (HB 3865) which, in addition to other mandates, requires employers to notify employees of their right to be free from discrimination for medical needs arising from pregnancy, childbirth, or related medical conditions. Specifically, employers must now provide this notice to all new employees at the commencement of employment, and to existing employees via conspicuous posting within 120 days of the Act s passage (i.e. September 14, 2018). It is important to note that HB 3865 does not appear to require leave as an accommodation. The South Carolina legislature provided the following summary of the intent of HB 3865: It is the intent of the General Assembly by this act to combat pregnancy discrimination, promote public health, and ensure full and equal participation for women in the labor force by requiring employers to provide reasonable accommodations to employees for medical needs arising from pregnancy, childbirth, or related medical conditions. Current workplace laws are inadequate to protect pregnant women from being forced out or fired when they need a simple, reasonable accommodation in order to stay on the job. Many pregnant women are single mothers or the primary breadwinners for their families; if they lose their jobs then the whole family will suffer. This is not an outcome that families can afford in today s difficult economy. 5

6 Tech Flex: June 2018 Volume VI 6 Specifically HB 3865 amends the South Carolina Human Affairs Law (S.C. Code Ann , et seq.) in three key respects as follows: Section (l) Provides that the terms because of sex or on the basis of sex expressly include because of or on the basis of pregnancy, childbirth, or related medical conditions, including, but not limited to, lactation, and providing that women affected by pregnancy, childbirth, or related medical conditions must be treated the same for all employment-related purposes, including receipt of benefits under fringe benefit programs. Section (T) Provides that reasonable accommodations must be provided for pregnancy and related medical conditions, including, without limitation, lactation. The amended section also expressly provides that employers may be required to provide accommodations of the same type and in the manner as it would for other employees or classes of employees requiring reasonable accommodation for non-pregnancy-related conditions. Section (A) (unlawful employment practices) Provides that it is an unlawful employment practice for an employer to: (1) fail or refuse to make reasonable accommodations for medical needs arising from pregnancy, childbirth or related medical conditions for applicants or employees; (2) deny employment or opportunities to an employee or applicant if the denial is based on the employee's or applicant's need for a reasonable accommodation; (3) require a pregnant employee or applicant to accept an accommodation not of her choosing, if the applicant or employee does not have a known limitation related to pregnancy or the accommodation is unnecessary for her to perform essential job functions; (4) require the employee to take leave under any leave law or policy if another reasonable accommodation can be provided; or (5) take adverse action against an applicant or employee for requesting or using a reasonable accommodation for a medical need arising from or related to pregnancy, childbirth or related medical condition. For a copy of HB 3865 please click on the link provided below: 6

7 Tech Flex: June 2018 Volume VI 7 SAN FRANCISCO UPDATES GUIDANCE ON PAID SICK LEAVE ORDINANCE On May 7, 2018, the City and County of San Francisco Office of Labor Standards Enforcement (OLSE) published RULES IMPLEMENTING THE SAN FRANCISCO PAID SICK LEAVE ORDINANCE (PSLO). These rules became effective June 7, These rules updated the initial rules that were adopted when the Paid Sick Leave Ordinance initially went into effect in May of By way of background, the San Francisco Paid Sick Leave Ordinance (PSLO) requires employers to provide paid sick leave to all employees (including temporary and part-time employees) who perform work in San Francisco. Employees earn 1 hour of paid sick leave for every 30 hours worked. Employers with 10 or more employees may cap an employee's sick time balance at 72 hours. Employers with fewer than 10 employees may cap an employee's sick time balance at 40 hours. Some of the highlights of the guidance are below. Covered Employees Employees who perform work in San Francisco are covered by the Ordinance only if they perform 56 or more hours of work in San Francisco within a calendar year. Employees who live in San Francisco and perform work for an employer from home, including telecommuting, are covered by the Ordinance for all hours that they perform work from home if the employee performs 56 or more hours of work in San Francisco within a calendar year. Employees who travel through San Francisco and stop in the city to work (for example, to make pickups or deliveries) are covered by the Ordinance for all hours worked in the city. This includes travel within the city to and from the work site(s). This rule applies only if they perform 56 or more hours of work in San Francisco within a calendar year. Accrual and Use Accrual If the number of employees fluctuates above and below 10 per week over the course of a year, OLSE will calculate business size for the current calendar year based on the average number of employees during the preceding calendar year. For new employers, OLSE will calculate business size for the current calendar year based upon the average number of employees for the first 90 days after the employer s first employee(s) began work. In instances where the exempt employee s regular work week is less than 40 hours, paid sick leave accrues based upon the exempt employee s regular work week. Carryover Limit Rehires If an employee separates from an employer before the 90th day of employment, and is rehired by the employer within one year from the date of separation, all prior days of employment should be counted toward the 90 days of employment. After the rehired employee has passed their 90th date of employment, the employee may use paid sick leave as it is accrued. 7

8 Tech Flex: June 2018 Volume VI 8 Rate of Pay If the employee is an exempt employee, and no other forms of paid leave are provided, the employee s salary must continue without deduction for sick time taken, with the time taken applied against the employee s leave balance. For a copy of the PSLO please click on the link provided below. IRS 2019 FORM W-4 REPRESENTS MAJOR CHANGES TO PAYROLL On June 6, 2018, the Internal Revenue Service (IRS) released a draft Form W-4, Employee s Withholding Allowance Certificate, for Several changes are fundamental in nature, potentially requiring significant reprogramming of payroll systems. State and local tax authorities are also expected to respond with similar changes. Background Employees use IRS Form W-4 to establish marital status and withholding allowances for federal income tax withholding calculations. Many states use the Federal Form W-4 for state withholding purposes. The Tax Cuts and Jobs Act (TCJA) made significant changes to tax rates, deductions, tax credits, and withholding calculations, beginning in New IRS withholding tables were published in January, and the 2018 Form W-4 was released in February. The IRS made few changes for 2018, and determined that employees would not be required to complete a new Form W-4 for However, it was strongly recommended and for some people it may be advisable. Highlights of the Draft Form W-4 for 2019 Number of Allowances Eliminated Perhaps the most prominent change on the 2019 Form W-4 is that Line 5, Total number of allowances you re claiming, is eliminated. Employees will be strongly encouraged, but not required to complete a new W-4 for Employers will still be able to use 2018 and prior Forms W-4 for employees that don t complete a 2019 W-4. As a result, payroll systems will need to maintain both 2018 and 2019 withholding systems and calculations simultaneously. New Marital Status Box - Head of Household A third IRS withholding calculation/table will be added to correspond with this new marital status, in addition to the existing tables for Single and Married Filing Jointly. New Line 5. Additions to Income This line asks employees to enter estimated nonwage income not subject to withholding (such as interest and dividends). Previously, employees with significant nonwage income had to convert such amounts to equivalent per-payroll additional amounts to withhold. Line 5 amounts will be full-year estimates, so employer payroll systems will need to be modified to include these full-year amounts in withholding calculations. 8

9 Tech Flex: June 2018 Volume VI 9 New Line 6. Itemized and Other Deductions Line 6 prompts employees to enter estimated subtractions to income based on expected deductions (such as state and local taxes, mortgage interest, and charitable contributions). Previously, employees needed to convert deductions into equivalent withholding allowances. Again, amounts entered will be full-year estimated deduction totals, so payroll systems will need to include full-year amounts in withholding calculations. New Line 7. Tax Credits This line asks employees to enter the full-year amount of any tax credits for which they expect to qualify, such as the child tax credit. As a reminder, the 2017 Tax Cuts and Jobs Act significantly expanded child and dependent tax credits. Previously all tax credits were translated by employees into additional withholding allowances. With the 2019 Form W- 4, full-year tax credit amounts will be directly entered into payroll systems. Critically, any tax credits should only be entered for the highest paying job in households with multiple incomes. Taxes may be significantly under-withheld for a household if both spouses enter the full-year credit expected, resulting in a large tax amount due at yearend. Conversely, taxes may be significantly over-withheld if neither spouse enters the total tax credit amount, resulting in reduced net paychecks during the year, and a large tax refund at year-end. New Line 8. Additional Household Income Due to Multiple Jobs If applicable, employees will enter the (full-year) income associated with any second job (e.g., a second job that the employee holds, or the annual wage income of any spouse, if they are employed). Additional wage income should only be entered for the highest paying job in households with multiple incomes. There are special instructions for households with more than two incomes. Previously, employees used a Form W-4 worksheet to calculate a specific additional amount to withhold per pay period. Employers will include these full-year amounts in withholding calculations in order to determine the appropriate tax bracket and rates for the employee. Alternatively, the instructions will offer a calculation to estimate an additional tax amount to withhold per pay period, which was the solution prior to Employees will also be able to go to the online calculator (discussed below) or IRS Publication 505, Tax Withholding and Estimated Tax, to bypass Lines 5 and/or 8. Line 9. Additional Amount, If Any, You Want Withheld From Each Paycheck This line is unchanged. Employees will continue to be able to enter an additional per-pay period amount to withhold. Line 9 is the only entry with a per-pay period result. 9

10 Tech Flex: June 2018 Volume VI 10 A Paycheck Checkup Remains Important for 2018 For most people, the TCJA will result in a tax reduction, and many have noticed reduced federal income tax deductions and a corresponding increase in net pay. However, even though the 2018 withholding tables were designed to be as accurate as possible, changes to withholding may not correspond closely to changes in actual full-year income tax liability. In some circumstances, even employees that ordinarily receive an IRS tax refund may find that they owe additional tax to the IRS for tax year Unless an employee has already filed a new Form W-4 in 2018, tax withholding calculated for 2018 payrolls could be based on outdated withholding allowances. Most significantly, the law eliminated personal exemptions. In 2017, each personal exemption (e.g., for the employee, any spouse and any dependents) reduced federal taxable income by $4,050 per person. In 2018, the value of personal exemptions is zero. The value of each withholding allowance is $4,150 for 2018, and to the extent that withholding allowances on file in 2018 represent personal exemptions, an employee s withholding allowances may be overstated for 2018, which could result in tax under-withholding. The new IRS tax tables adjusted for this and other factors to some extent, but because Forms W-4 permit withholding allowances based on factors such as expected tax credits and itemized deductions (such as mortgage interest, and state/local taxes), employers are not able to automatically adjust withholding allowances to eliminate personal exemptions. The IRS published a new online W-4 Calculator in February, and strongly recommended that employees access the calculator at to determine the correct number of withholding allowances (either adjusting for the TCJA, and/or changes in personal circumstances). The online IRS calculator will ask a number of questions about income, marital status, anticipated deductions and eligibility for tax credits, to estimate annual taxable income and suggest the most appropriate number of withholding allowances. Actions for 2019 The Draft 2019 Form W-4 should not be provided to employees at this time, since it may change. It should not be used for payrolls dated before Employers should consider reminding employees of the withholding calculator, which will help employees check their tax withholding at any point in the year compared to their total expected full-year tax liability. It is important to do this as early as possible in the year to allow a smaller adjustment (if needed) during the balance of the year. A sample letter follows. 10

11 Tech Flex: June 2018 Volume VI 11 Example Notice to Employees Re: 2018 Income Tax Withholding Dear : This is a reminder that the 2017 Tax Cuts and Jobs Act (TCJA) changed federal income tax rates and brackets, among other things, beginning in New IRS withholding tables were put into effect in late January. Depending on your specific tax situation, you might owe additional tax when you file your 2018 income tax return, even if you normally receive a tax refund from the IRS at year-end. The IRS offers an online W-4 Calculator, at This calculator can help you check your tax withholding at any point in the year, compared to your total expected 2018 tax liability. It is important to do this as early as possible in the year to allow a smaller adjustment (if needed) during the balance of the year. Although the IRS did not require all employees to file a new Form W-4 for 2018, for some people it may be advisable. The TCJA made many other changes that could affect your 2018 income taxes. To update your withholding allowances, see the IRS 2018 Form W-4, Employee s Withholding Allowance Certificate, and related instructions, which you can find at For questions regarding your personal tax situation, talk with your tax advisor, or visit MINIMUM WAGE INCREASE FOR WORKERS WHO CARE FOR PEOPLE WITH DISABILITIES IN CONNECTICUT On May 9, 2018, Governor Dannel Malloy signed into law H5460 which will increase the minimum wage rate for employees who work for private agencies in group homes and day programs that receive state funding, including funding from the Connecticut Commissioners of Social Services, Department of Children and Families, Department of Developmental Services, Department of Rehabilitation Services, and the Department of Mental Health and Addiction Services. Effective July 1, 2018, the rate will increase from $11.20 per hour to $ The increase applies to workers who provide direct care to persons, including, but not limited to, medical services, mental health and addiction treatment, nutrition and housing assistance, services for persons with intellectual and developmental disabilities, and residential and habilitative services. A link to H5460 has been provided below: 11

12 Tech Flex: June 2018 Volume VI 12 GEORGIA REVISES WAGE GARNISHMENT LIMITS The state of Georgia has enacted legislation (SB 194) which amends the maximum amount of an employee s disposable earnings that may be garnished to repay a debt. Effective May, 8, 2018, the maximum wages subject to garnishment are the lesser of: (1) 25% of weekly disposable earnings, or (2) weekly disposable earnings in excess of $217.50, up from $ For pay periods other than weekly, the proportionate fraction, or a multiple of 30 hours per week at $7.25 per hour will be used to determine the garnishment limit. Currently, a multiple of $7.25 per hour is used. For a copy of SB 194 please click on the link provided below: MICHIGAN MODIFIES PAY FREQUENCY REQUIREMENTS FOR MONTHLY PAID EMPLOYEES Under current Michigan law, employees paid on a monthly pay frequency must be paid on the 1 st of the month following the month in which the wages were earned. For example, all wages earned in June must be paid by July 1. This law made it difficult for employers to close out their payroll for the month and provide paychecks to their employees in short order. As a result of the enactment of H5235, effective September 2, 2018, an employer who has established a regularly scheduled monthly pay period is in compliance if the employer pays to the employee, within 15 days after the end of a monthly pay period, all wages earned during the monthly pay period. HB 5235 also provides the following guidance in relation to weekly, bi-weekly pay frequencies and payment of overtime wages: An employer who has established a regularly scheduled weekly or biweekly payday is in compliance if both of the following conditions are met: (a) Wages are paid to the employee on the established regularly recurring payday. (b) The payday occurs on or before the fourteenth day following the end of the work period in which the wages are earned. For employees overtime earnings earned during the month of December that would, in compliance with this section, be paid to the employees after the sixteenth of December, an employer is in compliance with this section if both of the following conditions are met: (a) Employees receive all their wages, except overtime, for the month of December on or before the employees regularly scheduled payday. (b) All overtime wages earned during the month of December are paid on or before the next regularly scheduled payday following the payday in which the overtime would otherwise be paid. It is important to note that H5235 provides that an employer may pay wages more often than required by this section. For a copy of H5235 please click on the link provided below. 12

13 Tech Flex: June 2018 Volume VI 13 NEW HAMPSHIRE AMENDS PAY FREQUENCY REQUIREMENTS New Hampshire Governor Christopher Sununu has signed into law Senate Bill 428 (SB 428) that effective July 29, 2018, modifies the pay frequency requirements of employees. Under current law, wages must be paid at regular intervals not to exceed 14 days. SB 428 stipulates that unless otherwise authorized by the State, every employer shall pay all wages due to employees within 8 days after the expiration of the work week if the employee is paid on a weekly basis, or within 15 days after the expiration of the work week if the employee is paid on a biweekly basis. For a copy of Senate Bill 428 please click on the link provided below. REMINDER OREGON TRANSIT TAX BECOMES EFFECTIVE JULY 1, 2018 As previously reported September 2017 Tech Flex, Oregon Governor Kate Brown signed into law HB 2017 on August 8, 2017 which created a new 0.1% payroll tax, effective July 1, 2018, on the wages of employees who are residents of Oregon, or nonresidents performing services within Oregon, to fund public transit. HB 2017 stipulates that if an employer fails to deduct and withhold the tax, the employer will be responsible for payment of the tax obligation. There is also a penalty of $250 per employee, with a maximum penalty of up to $25,000, if an employer fails to deduct and withhold the tax. Oregon residents subject to the tax who earn wages outside of Oregon will be responsible for paying the tax in a manner determined by the Department of Revenue. For a copy of HB 2017, please click on the link provided below. VERMONT GOVERNOR VETOES MINIMUM WAGE, PAID FAMILY LEAVE BILLS On May 22, 2018, Governor Phil Scott vetoed legislation that would have raised Vermont s minimum wage to and established a paid family leave program. Under the vetoed legislation passed by the Vermont House and Senate, the minimum wage in the state would have been increased to $15.00 per hour by the year The proposed paid family leave program would have been funded by employees through an additional percent tax on their income. The state-administered fund would have allowed workers to receive 70 percent of their wages for up to 12 weeks of parental leave or up to six weeks of family leave. The tax would have been on just the first $150,000 of an employee s income. 13

14 Tech Flex: June 2018 Volume VI 14 MINIMUM WAGE TO INCREASE IN U.S. VIRGIN ISLANDS Effective June 1, 2018, the minimum wage rate for workers in the U.S. Virgin Islands will increase to $10.50 per hour. This is a $1.00 increase over the current rate of $9.50 per hour in effect since June 1, This is the last of a three-year increase to the minimum wage beginning on June 21, 2016 when the rate was increased to $8.36 per hour. Prior to that date, the U.S. Virgin Islands minimum wage was based on the federal minimum wage, currently $7.25 per hour. EMERYVILLE, CALIFORNIA INCREASES MINIMUM WAGE The City of Emeryville, California has announced that its minimum wage rate will increase effective July 1, 2018 as follows: From $14.00 to $15.00 per hour for small businesses (55 or fewer employees) From $15.20 to $15.69 per hour for large businesses (56 or more employees) For a copy of the announcement please click on the link provided below. WESTERN SPRINGS OPTS BACK INTO COOK COUNTY MINIMUM WAGE AND SICK LEAVE ORDINANCES The Western Springs Board of Trustees has voted to opt into both the Cook County minimum wage and sick leave ordinances effective May 18, 2018 reversing a previous decision to opt out of the Cook County ordinances. The Western Springs minimum wage rate has been $8.25 per hour equal to that of Illinois minimum wage rate. In accordance with the Cook County ordinance, the Western Springs minimum wage effective May 18, 2018 is $10.00 and will increase to $11.00 per hour effective July 1, The Cook County sick leave ordinance requires employers to provide one hour of paid sick leave for every 40 hours worked to employees who have worked at least 80 hours in a 120-day period in the county. It is important to note that there is no retroactive application of the Cook County sick leave or minimum wage ordinances. SEATTLE ENACTS AND THEN REPEALS EMPLOYER HOURS TAX On May 16, 2018 Seattle enacted an ordinance that imposed an Employers Hours Tax on all businesses that have a taxable gross income of more than $20,000,000 in the most recent complete calendar year with employees working in the city of Seattle. Subsequently on June 12, 2018, the Seattle City Council voted 7-2 to repeal that tax and Mayor Jenny Durkan stated she intended to sign the repeal. A petition to repeal the law had strong support and polls indicated that the tax would have been repealed overwhelmingly by voters in the November 2018 election. The tax of $275 per employee, per year slated to be effective January 1, 2019 was intended to help fund housing and services for homeless people. 14

15 Tech Flex: June 2018 Volume VI 15 JULY 1, 2018 MINIMUM WAGE INCREASE REMINDER The following are a list of Cities, Counties and states where the minimum wage will increase as of July 1, 2018 where notification was provided in previous editions of the Tech Flex. It is important to note that the rates reflected are those required to be paid by large private sector employers subject to the Fair Labor Standards Act. Rates that may be paid in certain states by small employers as defined by applicable state law, to individuals under a certain age (e.g. youth wage), to a certain classification of employees (e.g. fast food workers) or to employees during a training period are not reflected. Jurisdiction Belmont, California Emeryville, California July 1, 2018 Minimum Wage Per Hour $12.50 (currently $11.00). Tipped Credit $15.69 (currently $15.20). Tipped Credit Los Angeles, California Los Angeles County, California Malibu, California Milpitas, California Pasadena, California San Francisco, California San Leandro, California Santa Monica, California District of Columbia Chicago, Illinois Cook County, Illinois $13.25 (currently $12.00). Tipped Credit $13.25 (currently $12.00). Tipped Credit $13.25 (currently $12.00). Tipped Credit $13.50 (currently $12.00). Tipped Credit $13.25 (currently $12.00). Tipped Credit $15.00 (currently $14.00). Tipped Credit $13.00 (currently $12.00). Tipped Credit $13.25 (currently $12.00). Tipped Credit $13.25 (currently $12.50). Tipped employees must be paid at least $3.89 (currently $3.33) in cash wages. $12.00 (currently $11.00). Tipped employees must be paid at least $6.25 (currently $6.10) in cash wages. $11.00 (currently $10.00). Tipped employees must be paid at least $5.10 (currently $4.95) in cash wages. 15

16 Tech Flex: June 2018 Volume VI 16 Jurisdiction Portland, Maine July 1, 2018 Minimum Wage Per Hour $10.90 (currently $10.68). Tipped employees must be paid at least $5.00 (currently $5.00) in cash wages Maryland Montgomery County, Maryland $10.10 (currently $9.25). Tipped employees must be paid at least $3.63 (currently $3.63) in cash wages. $12.25 (currently $11.50). Tipped employees must be paid at least $4.00 (currently $4.00) in cash wages. Minneapolis, Minnesota Oregon Portland, Oregon Urban Growth Boundary Oregon Non-Urban Counties $11.25 (currently $10.00). Tipped Credit not allowed in Minnesota. $10.75 (currently $10.25). Tipped Credit not allowed in Oregon. $12.00 (currently $11.25). Tipped Credit not allowed in Oregon. $10.50 (currently $10.00). Tipped Credit not allowed in Oregon ADP does not make any representation or warranty that the information contained in this newsletter, when used in a specific and actual situation, meets applicable legal requirements. This newsletter is provided solely as a courtesy and should not be construed as legal advice. The information in this newsletter represents informational highlights and should not be considered a comprehensive review of legal and compliance activity. Your legal counsel should be consulted for updates on law and guidance that may have an impact on your organization and the specific facts related to your business. **Please note that the information provided in this document is current as of the date it is originally published.** 16