June 2007 | Volume VI, Issue 6

Federal Minimum Wage Increased

President Bush signed into law the Fair Minimum Wage Act of 2007(H.R.2) on May 25, 2007.

The minimum wage currently $5.15 will go to $7.25 in 3 installments of 70 cents. Workers will see an increase this summer (60 days after enactment of this act on July 24, 2007) to $5.85, going to $6.55 an hour beginning 12 months after that 60th day (July 2008) and to $7.25 beginning 24 months after that 60th. So by summer 2009 (July 2009), all minimum wage jobs will pay no less than $7.25 an hour.

In addition to changes in compensation rates, all employers subject to the federal Fair Labor Standards Act must replace their federal labor law posters to reflect the increase in the minimum wage. This is even true of those employers who operate in states where the current state minimum wage is higher than the new federal rate.

LEGAL DISCLAIMER: Material contained in this newsletter is not legal advice, and should not be construed as legal advice. If you need legal advice upon which you can rely, you must seek a legal opinion from your attorney.

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© DataPath, Inc. 2007