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Administrator Guide
Last Updated: 2025-04-04
Steps: Set Up Minimum Wage for Hourly Plans

Steps: Set Up Minimum Wage for Hourly Plans

To use city, county, and local rates delivered by Workday, specify a
Local Minimum Wage Authority
 on the location of a business site. See Steps: Set Up Local Minimum Wage Rates.
You can configure minimum wage on an hourly plan using:
  • A flat rate, or Custom Minimum Wage.
  • Minimum wage rates maintained by Workday Payroll, or Payroll Authority Minimum Wage.
  • A calculation, or Calculated Minimum Wage.
Configuring minimum wage for hourly plans helps you:
  • Support minimum wage requirements for hourly workers.
  • Simplify administrative processes related to minimum wage management by automatically updating minimum wage assignments when rates change.
  • Improve accuracy by reducing manual entry errors when assigning minimum wage.
Payroll Authority Minimum Wage functionality is available to all HCM customers. However, hourly plans that are configured with Payroll Authority Minimum Wage can only use rates that Workday Payroll delivers. Currently, Workday delivers rates in the following locations:
  • United States
  • Canada
  1. (Optional) Access the
    Create Security Policy for Domain
     task.
    Complete the task:
    Option Description
    For Domain
    Select
    Set Up: Payroll Authority Minimum Wages View
    .
    Confirm
    Select the check box.
    Security Group
    Add
    Compensation Administrators
    .
    View
    Select the check box.
    Modify
    Select the check box.
    This security policy enables the Compensation Administrators to view Payroll Authority Minimum Wage tables and related reports.
    Security:
    Security Configuration domain
     in the System functional area.
  2. (Optional) Activate Pending Security Policy Changes.
  3. Configure a minimum wage type on your hourly plan and edit the status of the
    Enforce Minimum Wage
     check box.
    You can use the:
    • Create Hourly Plans
       or the
      Edit Hourly Plans
       task. See Create Hourly Plans.
    • Put Compensation Plans
       EIB.
    • Set Up Hourly Plan Adjustment
       task only for hourly plans configured without minimum wage or configured with Custom Minimum Wage.
  4. Assign new or update existing minimum wage assignments for workers to comply with the minimum wage amount on the hourly plan.
    You can:
    • Use the
      Hourly Plan Assignment Updates for Worker by Position
       mass operation type on the
      Mass Operation Management
       task. See Steps: Set Up Mass Operations for Minimum Wage.
    • Update assignments manually using the
      Request Compensation Change
       web service. See Concept: Request Compensation Change EIB.
    • Use the
      Set Up Hourly Plan Adjustment
       task to update assignments only for workers who are assigned an hourly plan configured without minimum wage or configured with Custom Minimum Wage.
  5. Access the
    Minimum Wage Audit for Worker Assignments by Position
     report.
    Identify workers paid below the minimum wage amount that you configured for the hourly plan.
    Security:
    Worker Data: Staffing Reports with Compensation Data
     domain in the Staffing functional area
Workday applies the minimum wage that you configured to workers who:
  • Are assigned a new hourly plan.
  • Have an existing hourly plan assignment.
Workday doesn’t display the
Minimum Wage
 field in the
Hourly Plan
 tasklet for hourly plans that use Payroll Authority Minimum Wage or Calculated Minimum Wage when:
  • There’s no table data available for the worker’s location.
  • The calculated value for minimum wage is zero.
Because the
Minimum Wage
 field in the
Hourly Plan
 tasklet of compensation events is based on the hourly plan’s configuration, the field’s value could update while an event is in progress. As a best practice, we recommend you verify that the proposed hourly plan assignment’s
Amount
 reflects:
  • The most recent
    Minimum Wage
     value.
  • Your original intended compensation change in each business process review step.
If you didn't select the
Enforce Minimum Wage
 check box on the hourly plan, you can configure:
  • Validation conditions for business process steps on an hourly plan that doesn’t enforce minimum wage. See Steps: Configure Business Process Definitions.
  • Minimum wage validations for compensation reviews using the
    Minimum Wage Amount
     report field.
You can also configure custom notifications to alert Compensations Administrators about:
  • The status of minimum wage compliance across your workforce on the
    Minimum Wage Audit for Worker Assignments by Position
     report.
  • Updated minimum wage rates on the Payroll Authority Minimum Wage tables from the
    Payroll Compliance Update Documentation
     report.