Minimum Wage to Increase on July 24
On May 25, President Bush signed legislation amending the Fair Labor Standards Act to raise the federal minimum wage for the first time in 10 years.
The increase is being phased in as follows:
On July 24, 2007 (60 days after enactment of the law), the federal minimum wage increases from the current rate of $5.15 per hour to $5.85 per hour.
On July 24, 2008 (12 months after that 60th day), the federal minimum wage will increase to $6.55 per hour.
On July 24, 2009 (24 months after that 60th day), the federal minimum wage will increase to $7.25 per hour.
At least 30 states have established a minimum wage rate higher than the current federal rate. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to higher of the two minimum wages. For information on state minimum wage laws, click here.
Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post a notice explaining the Act in a conspicuous place at all work sites. The Department of Labor is expected to provide new language and a new model poster reflecting the rate changes in the coming weeks. AGC will update its Consolidated Federal Employment Laws Posters soon after.
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