Federal Minimum Wage Increase for 2007, 2008, & 2009
Federal Minimum Wage Increased July 2009
On July 24, 2009, the Federal Minimum Wage increased to $7.25 per hour. This change reflected the third and final Federal Minimum Wage increase as amended under the Fair Labor Standards Act (FLSA).
In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the greater of the two wages. As it stands, there are 24 states affected by the federal minimum wage. The states include: Alabama, Arkansas, Delaware, Georgia, Idaho, Indiana, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Nebraska, North Carolina, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming. To view updated minimum wage rates for your respective state, click here.
Many workers were affected by the Federal Minimum Wage increase. For part-time workers, the increase provided a silver-lining, as employers chose to promote more from within. Low-skilled, and youth workers also stood to gain, under the assumption they were currently employed. However, for unemployed teen workers, job prospects looked grim. In June 2009, the U.S. Department of Labor reported a 24% teen unemployment rate, further adding to the up-hill battle teens faced when seeking employment.
In order for business owners and employers to easily comply with new law requirements, The LaborLawCenter™ provides updated posters. Visit our Federal Labor Law poster, or Complete Labor Law poster product pages to order poster replacements for your workplace. Customers protected under our Compliance Protection Plan™ automatically receive mandatory poster updates. For more information on this program, and to learn how you can receive worry-free compliance, visit our Compliance Protection Plan™ page.
Federal Minimum Wage Increased July 2008
As part of the three step increase, in July 2008, the Federal Minimum Wage increased to $6.55 per hour. Due to the increase, many state minimum wage rates changed as well. For a detailed list of rates, please click here. The final increase was in July 2009. Our Federal Labor Law Poster has the federal rate reflected and the Complete Labor Law Poster has the federal rate and any new state rates reflected on the poster.
LaborLawCenter™ continually keeps you posted on any type of state or federal change. Please continue to visit us as many other important changes will occur on an annual basis.
Special Minimum Wage For Workers with Disabilities
Workers with disabilities paid at special minimum wages are paid less than the basic hourly rates stated in an SCA wage determination and less than the FLSA minimum wage of $5.85 per hour beginning July 24, 2007, $6.55 per hour beginning July 24, 2008, and $7.25 per hour beginning July 24, 2009. Such wages are referred to as "commensurate wage rates" and is based on the worker's individual productivity, no matter how limited, in proportion to the wage and productivity of experienced workers who do not have disabilities that impact their productivity when performing essentially the same type, quality, and quantity of work in the geographic area from which the labor force of the community is drawn.
For an employer to pay the special minimum wages, they must obtain a certificate. Authority to pay special minimum wages to workers with disabilities applies to work covered by the Fair Labor Standards Act (FLSA), McNamara-O’Hara Service Contract Act (SCA), and/or Walsh-Healey Public Contracts Act (PCA).
Federal Minimum Wage Increased July 2007
The Federal Minimum Wage rate of $5.85 went into effect July 24, 2007. This was the first increase out of a three step increase set by the Federal government. Labor Law Posters must be posted to reflect the current Federal Minimum Wage. Order your Labor Law Poster today.
Federal Government Released Federal Minimum Wage Poster Effective July 24th, 2007
On July 3, 2007, the Federal Government released the updated version of the Federal Minimum Wage Poster. The poster reflected the increase in three steps. The new poster is on our Complete State and Federal Poster or the Federal Only Labor Law Poster. With many states operating under the Federal Minimum Wage, state posters were updated to reflect the increase. To stay in continual complete compliance, please click here to get more information on our Compliance Protection Plan™.
Federal Minimum Wage Increased by $2.10 Approved July 2007!
President Bush signed a bill in 2007 that increased the Federal Minimum Wage rate in 3 steps. The increase was the first ever since 1997! The first rate increase took effect July 24, 2007 and employers were required to comply. States that operated under the previous Federal Minimum Wage of $5.15 had to comply with the new rate. Although many states operated under a State Minimum Wage that was higher than the Federal Minimum Wage, they still had to post the Federal Minimum Wage rate. Purchase The Complete Poster or the Federal Labor Law Poster, which reflects the Federal Minimum Wage, to stay in compliance with the labor law posting requirements.
To view other State Minimum Wage Rates, please click here.
Federal Minimum Wage Bill Approved by Congress with the President's Support in 2007
On Thursday, May 24, 2007, Congress approved the Federal Minimum Wage increase. The pay increase was a total of $2.10 and occurred in three increments, first increase of $0.70 occurred in July 2007 making the minimum wage $5.85 per hour, another $0.70 increase in July 2008 made the minimum wage $6.55 per hour and the final increase of $0.70 in July 2009 put the new minimum wage at $7.25 per hour.
To order your Labor Law Poster, please click here.
Federal Minimum Wage Increase Made Progress in Congress in April 2007
On April 20th, 2007 both the House of Representatives and Senate reached a deal on the Federal Minimum Wage increase. The negotiators for the House and the Senate agreed on a business tax incentive package that would accompany the wage increase. For weeks the House and Senate delayed the progress of the increase due to differences over how to ease the impact of raising the wage on small businesses.
The Federal Minimum Wage increase was in three steps. The increase raised the Federal Minimum Wage to $5.85 per hour in 2007, then $6.55 per hour in 2008 and $7.25 per hour in 2009.
Please click here for information on how to stay in compliance with the labor law posters.
What Is Next for Businesses and The Federal Minimum Wage?
The Federal Minimum Wage increase was sent to President Bush in 2007 for approval before it could take effect and be signed into law. When President Bush signed the bill, the Federal Minimum Wage increase officially became law and took effect 60 days after that. The breakdown of the increase was $5.85 60 days after it was signed into law, then $6.55 a year later and finally $7.25 a year after that.
How Will Businesses Stay In Compliance?
The current Federal Minimum Wage Poster reflects the minimum wage of $7.25 per hour. Should a new Federal Minimum Wage take effect, the existing poster reflecting the $7.25 per hour rate will be revised and new labor law posters will be updated to reflect the new rate and regulations. There is no timeframe if and when a Federal Minimum Wage increase will happen. The last time the Federal Minimum Wage increased, it was a three step increase reflected on one Federal Minimum Wage poster.
What Is The Compliance Protection Plan™ Advantage?
With the prospect of a Federal Minimum Wage increase being a possibility, businesses should consider what to do to stay in compliance while keeping costs down. Not only will the Compliance Protection Plan™ protect you against a Federal Minimum Wage update, but it will also protect you against any state and federal mandated updates to keep you in compliance with labor law posters you are required to display. Under the Compliance Protection Plan™, your organization will receive a brand new Complete Labor Law Poster whenever there is a federal or state mandated update to the labor law posters. Please click here to start your Compliance Protection Plan™ or to find out more about how the Compliance Protection Plan™ can save you costly fines, keep your labor law poster costs down, and save your company valuable time.
How Will the State's Minimum Wage Be Affected?
With the current Federal Minimum Wage at $7.25, 26 other states have already increased their state's minimum wage and essentially adopted a minimum wage rate that is higher than the Federal Minimum Wage rate to adjust to the cost of living and meet the needs of citizens of their state. As talks to raise the Federal Minimum Wage increase, other states will possibly look into raising their minimum wage.
Is There a State Minimum Wage And a Federal Minimum Wage?
Yes. If the State assesses that a higher minimum wage than the Federal Minimum Wage will suit the needs of their citizens, a different minimum wage rate will be adopted. With that being said, for any state that has a higher minimum wage than the Federal Minimum Wage, two postings will prevail. There will be a Federal Minimum Wage poster that must be posted and a State Minimum Wage poster that must be posted simultaneously if the State mandates that a State Minimum Wage poster be posted as well.
Now is the best time to consider the Compliance Protection Plan™. With a possible Federal Minimum Wage increase and other states increasing their minimum wage, it is more important than ever to consider the Compliance Protection Plan™. Please click here to start your Compliance Protection Plan™ or to find out more about the Compliance Protection Plan™.
Senate Approved Increase to Federal Minimum Wage - February 2007
On February 1, 2007 the Senate voted overwhelmingly to increase the Federal Minimum Wage to $7.25 per hour over the course of two years. The Federal Minimum Wage increase was the first increase in a decade. The approved vote came after a nine-day debate. President Bush then urged the House of Representatives to support the measure, including the tax help for small businesses. After both the Senate and the House of Representatives finalized the bill, it was sent to President Bush for approval.
Federal Minimum Wage Increase Delayed in Senate - January 2007
In January 24, 2007, the Senate did not approve on the measure to increase the Federal Minimum Wage without including tax cuts for employers that caused a delay in the progress to increase the Federal Minimum Wage. The bill approved by the House of Representatives was rejected after falling six votes short. The bill was so-called a "clean bill" as it sought to increase the Federal Minimum Wage to $7.25 per hour over the next two years, but didn't add tax breaks or other exemptions for business owners. President Bush stated that he would only support an increase that included tax cuts for businesses. The Senate's rejection of the House of Representative's version meant that the Senate had to introduce a series of amendments to the bill.
House of Representatives Made Progress in Approving the Federal Minimum Wage Increase for 2007
On January 10, 2007, the House of Representatives successfully won the approval to raise the Federal Minimum Wage to $7.25 per hour. This was a crucial step as it brought America's minimum wage workers closer to an increase in their pay in over a decade. The next step was getting the Senate to approve the new Federal Minimum Wage and having the then president, President Bush, sign the bill into law. The measure proposed an increase of $2.10 to the Federal Minimum Wage of $5.15 over the next 26 months, bringing the Federal Minimum Wage to $7.25 per hour.