Tuesday, July 21, 2009

Minimum Wage Increases July 24, 2009

Under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees will be $7.25 beginning Friday July 24, 2009. This is an increase in the federal minimum wage of $.70 per hour.

Many states also have minimum wage laws. Click on the word "states" to go to an interactive map. Then click on the state of interest to see what that state's current minimum wage is.

Currently, Massachusetts minimum wage is $8.00, New Hampshire is $7.25, Connecticut is $8.00 and Rhode Island is $7.40.

Michigan is $7.40 and Ohio is $7.30. All are above the new federal minimum wage and therefore no change is needed in those states.

Indianna will follow the federal change and move to $7.25 Friday the 24th as well.

Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.

Where state law requires a higher minimum wage, that higher standard applies.

Michael Young says that the rule of thumb is that the wage rate that benefits the employee more is the wage that should be followed.

Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.

How often does the federal minimum wage increase?
The minimum wage does not increase automatically. Congress must pass a bill which the President signs into law in order for the minimum wage to go up.

Who makes sure workers are paid the minimum wage?
The Wage and Hour Division of the U.S. Department of Labor is responsible for enforcing the minimum wage. Using both enforcement and public education efforts, the Wage and Hour Division strives to ensure that workers are paid the minimum wage.

Paul Altavena reminds employers that the Wage and Hour Division has offices throughout the country. The phone numbers and addresses for these offices may be found by on the Internet by clicking on the link above.

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