Federal Minimum Wage to Increase July 24, 2009
Federal Minimum Wage Increases July 24, 2009
June 23, 2009
On July 24, 2009 the Federal minimum wage will be increasing from $6.55 per hour to $7.25 per hour. The Federal Minimum Wage Law establishes a minimum wage rate per hour for all non-exempt workers.
This marks the final leg of a scheduled three phase increase. The increases took place as follows: $5.85 per hour as of July 24, 2007, $6.55 per hour as of July 24, 2008, and $7.25 per hour effective July 24, 2009.
Employers subject to the Fair Labor Standards Act’s minimum wage provisions are required to comply with the law (state or federal) that allows for a greater minimum wage to be paid to the employee. Many states have minimum wage laws which are more stringent than federal regulations. If this is the case, employers must comply with their state-specific minimum wage requirements.
Many states have also chose to increase their minimum wage rates to $7.25 per hour effective July 24th in order to coincide with the federal change, including:
- Maryland
- Montana
- Nebraska
- New Jersey
- New York
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- South Dakota
- Texas
- Utah
- Virginia
Tip Credit:
Employers are required to pay tipped employees (defined as employees regularly earning more than $30 per month in tips) no less than $2.13 per hour, provided each employee earns enough tips to bring their average hourly wage to at least the State minimum wage. Any deficiencies must be supplemented by the employer so that the employee’s average hourly wage with tips reaches the minimum wage level.
“Opportunity” Wages:
Employers are allowed to pay an “opportunity wage” of $4.25 per hour to employees under 20 years of age during their first 90 consecutive calendar days of employment. However, employers are strictly prohibited from displacing employees in order to hire youth at the opportunity wage rate.
Posting requirements:
Employers subject to the Fair Labor Standards Act must post the Federal minimum wage notice in a conspicuous place. An updated poster will be required if your current minimum wage poster does not include the federal 2009 minimum wage rate of $7.25 per hour.
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