Federal Minimum Wage Increase

REMINDER:On July 24, 2009, the federal minimum wage increased to $7.25 per hour from the previous level of $6.55, according to the U.S. Department of Labor. The increase is the final one mandated by the Fair Minimum Wage Act of 2007, which boosted the federal minimum wage to $5.85 on July 24, 2007, then to $6.55 on July 24, 2008, and now, finally, to $7.25 on July 24, 2009.

Employers in states with minimum wage provisions that differ from the federal law must pay the higher of the two rates. For example, New York employers are currently required to pay at least $7.15 per hour. Seven states already require a $7.25 minimum wage, and 14 states and Washington, D.C., exceed the new minimum.

Author:.

Allison Grace, CEBS, CCP, CMS, is President and Founder of Instant HR Solutions and a human resources professional with more than nineteen years of experience. As a consultant, Allison has worked with companies in various industries including hedge funds, technology, oil and gas development, recruiting and accounting. Combined with technical training and professional certifications, Allison’s practical experience includes working in all aspects of human resources to establish HR programs t...

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