Setting Up Jurisdiction Minimum Wage Processing

In the United States, federal and state level minimum wage laws are in place to guarantee that covered employees are paid at least the higher rate of the two.

In some states, local government bodies (also known as jurisdictions in Payroll for North America) introduce minimum wage ordinances with higher hourly minimum wage rates than their states to provide extra support to employees who work in areas with high living costs. Jurisdictions can be any local government bodies that establish and administer minimum wage legislation, such as cities, counties, regions, and so on.

Payroll for North America supports the use of minimum wage rates for jurisdictions in payroll calculation for employees working in them. The functionality impacts FLSA, tips, and retro calculations, in which the highest of the federal, state, and jurisdiction minimum wage rates defined in the system will be used.

Video: Image Highlights, PeopleSoft HCM Update Image 36: Support for Regional Minimum Wages