Federal Minimum Wage Increase for 2007, 2008, & 2009

*Last Updated: 10/14/2009

Federal Minimum Wage Increase, effective July 24, 2009

Effective July 24, 2009, the federal minimum wage increases to $7.25 per hour. This change reflects the third and final federal minimum wage increase as amended under the Fair Labor Standards Act (FLSA).

At this time, many minimum wage state laws will also change. 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 31 states that will be affected by this minimum wage increase. The states include: Alabama, Alaska, Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, 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 will be affected by the minimum wage increase. For part-time workers, the increase provides a silver-lining, as employers choose to promote more from within. Low-skilled, and youth workers also stand to gain, under the assumption they are currently employed. However, for unemployed teen workers, job prospects look grim. In June 2009, the U.S. Department of Labor reported a 24% teen unemployment rate, further adding to the up-hill battle teens face when seeking employment.

In order for business owners and employers to easily comply with new law requirements, The LaborLawCenter™ provides updated posters reflecting the July 2009 minimum wage update. Visit our Federal Labor Law poster, or Complete Labor Law poster product pages to order poster replacements for your workplace. Customers that are protected under our Compliance Protection Plan™ will automatically receive mandatory poster updates. For more information on this program, and to learn how you can receive worry-free compliance in 1, 2, or 3-year increments, visit our Compliance Protection Plan™ page.

Federal Minimum Wage Increases Again July, 2008

As part of the three part increase, effective July 2008, the minimum wage will increase to $6.55 per hour. Due to the increase, many state minimum wage rates will change as well. For a detailed list of rates, please click here. The next and final increase will be in July 2009. Our Federal Labor Law poster has the new Federal rate reflected and the Complete labor law poster has any new State and Federal rates reflected on the poster as well.

LaborLawCenter™ will continually keep 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 w/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).

New Federal Minimum Wage In Effect in 24 hours!

The new Federal Minimum Wage rate of $5.85 is set to go into effect July 24th. This will be the first increase out of a three step increase set by the Federal government. Labor Law Posters must be posted that reflect the new rate. Order your Labor Law Poster today.

Federal Government releases new Federal Minimum Wage Poster Effective July 24th, 2007

On July 3, 2007, the Federal Government released the updated version of the new Federal Minimum Wage Poster. The poster reflects the increase in three steps. The new poster will be reflected on our Complete State and Federal Poster or the Federal Only Labor Law Poster. With many states operating under the Federal Minimum Wage, many state posters are also being updated to reflect the new increase. To stay in Continual Complete Compliance, please click here to get more information on our Compliance Protection Plan™.

Federal Minimum Wage Increases by $2.10!

President Bush has signed a bill that increased the Federal Minimum Wage rate. The increase is the first ever since 1997! In approximately 60 days, the new rate will take effect and employers must comply. States that are operating under the current Federal Minimum Wage of $5.15 will soon need to comply with the new rate. Although many states are currently operating under a State Minimum Wage that is already higher than the Federal Minimum Wage, they still must post the new notice reflecting the new rate. Purchase The Complete Poster or The Federal Labor Law Poster which will reflect the new Federal Minimum Wage to stay in compliance with the labor law posting requirements.

	3 Step Increase is Scheduled as Follows: $5.85 - Summer of 2007 $6.55 - Summer of 2008 $7.25 - Summer of 2009

To view other State Minimum Wage Rates, please click here.

Federal Minimum Wage Bill Approved by Congress with the President's Support

The Federal Minimum wage increase is soon to become a reality in a matter of short days for all minimum wage earners across America. Congress on Thursday, May 24, 2007 approved the Federal Minimum Wage increase and a spokesman for President Bush said he would sign the bill into law. If President Bush signs the bill into law, it will take two months from the day of the signing for the law to go into effect. The pay increase will be a total of $2.10 and it will be increase in three increments, first increase of $0.70 will occur before the end of summer making the new minimum wage $5.85 per hour, another .70 cents increase sometime next year will make the minimum wage $6.55 per hour and the final increase of .70 cents will put the new minimum wage at $7.25 per hour by summer of 2009.

Pre-Ordering of the Labor Law Posters are current being taken. You will not be billed or shipped for the posters until posters are shipped. To Pre-Order, please click here.

Federal Minimum Wage increase makes progress in Congress on April 20th, 2007

On April 20th, 2007 both the House of Representatives and Senate has reached deal on what has been stalling the Federal Minimum Wage increase. The negotiators for the House and the Senate have agreed on a business tax incentive package that will be accompanying the wage increase. For weeks the House and Senate has delayed the progress of the increase due to differences over how to ease the impact of raising the wage on small businesses.

The steps of the Federal Minimum Wage increase will still be in a three step increase. The increase, if in effect, will increase the Federal Minimum Wage to $5.85 per hour 60 days after the president signs the bill into law, then $6.55 per hour a year later and $7.25 per hour a year after that.

LaborLawCenter.com will closely monitor the Federal Minimum Wage increase and will keep you posted. Please click here for information on how to stay in compliance with the labor law posters should the update occur.

What Is Next For Businesses And The Federal Minimum Wage?

A final bill still needs to be sent to President Bush for approval before the increase will take effect and be signed into law. If and when President Bush signs the bill, the Federal Minimum Wage increase will officially become a new law and an increase will be in effect 60 days after that. The breakdown of the increase will be $5.85 60 days after the new increase is 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 $5.15 per hour. Should the new Federal Minimum Wage take effect, the existing poster reflecting the $5.15 per hour rate will be revised and new labor law posters will be updated to reflect the new rate and regulations. There is no exact timeframe as to when the new Federal Minimum Wage poster will be available soon after the bill is signed into law. The Department of Labor will be working on the finalization of the poster once the law is in effect and LaborLawCenter.com will keep you up to date as when the poster would be available. The last time the Federal Minimum Wage increased, it had two proposed rate increases and both increases were reflected onto the poster. It is still unclear as to whether the three step increase for this current proposed Federal Minimum Wage will be reflected on the Federal Minimum Wage poster.

What Is The Compliance Protection Plan™ Advantage!

This week marked a successful gain towards the increase to the Federal Minimum Wage. With the prospect of a Federal Minimum Wage Increase looking very positive, businesses should consider what to do to stay in compliance while keeping costs down. Not only will the Compliance Protection Plan™ protect you against the Federal Minimum Wage update but it will also protect you against state mandated updates as well keeping you always in compliance with any Federal or State mandated changes that require you to update your labor law posters. 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 $5.15, 29 other states have already increased their state's minimum wage and essentially adopted a minimum wage rate that was higher than the Federal Minimum Wage rate to adjust to the cost of living and to meet the needs of citizens of their State. Within the past month or so Kentucky and Virginia are also working on increasing their State's minimum wage as the Federal Minimum Wage is not meeting the needs of their citizens. As the Federal Minimum Wage increase looks more promising, other states will possibly soon look into meeting the Federal standards.

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 the pending Federal Minimum Wage Increase and the possibility of other State changes as a result of the increase, 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™.

Progress of the 2007 Increase to the Federal Minimum Wage

Senate Approves Increase to Federal Minimum Wage

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, if signed by President Bush, will be the first increase in a decade. The approved vote came after a nine-day debate. President Bush is urging the House of Representatives to support the measure, including the tax help for small businesses. With the Senate and House of Representatives both approving a Federal Minimum Wage increase, the likelihood of an increase for the 2007 year is definitely looking more promising. The next step is for both the Senate and The House of Representatives to debate and finalize on a final bill to send to President Bush for approval.

Federal Minimum Wage Increase Delays in Senate - January 24th, 2007

The Senate did not approve on the measure to increase the federal minimum wage without including tax cuts for employers causing a delay in the progress increasing the Federal Minimum Wage. The bill approved by the House of Representatives a few weeks ago was rejected after falling six votes short. The bill is 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 will only support an increase that includes tax cuts for businesses. The senate rejecting the House of Representative's version of the bill means that now the Senate will be introducing a series of amendments to the bill.

Upon the amendments to the bill, the Senate will re-vote on the second bill which will not be expected until next week.

House of Representatives Makes 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 is a crucial step as it brings America's minimum wage workers closer to an increase in their pay for over a decade. The next step to moving closer to a final approval would be getting the Senate to approve the new Federal Minimum Wage. The measure which will be going to the Senate would propose an increase of $2.10 to the current federal minimum wage of $5.15 over the next 26 months bringing the federal minimum wage to $7.25 per hour. The Senate is expected to move quickly - perhaps in the next few weeks - on a similar bill.