Employers in Delaware should take note that the state’s minimum wage is now $7.15 per hour.
Governor Ruth Ann Minner signed a Delaware state bill into law in 2006 to raise the state minimum wage.
On January 1, 2007, the first step of the increase went into effect, raising the minimum a full 50 cents from $6.15 to $6.65 per her hour. The second and final step of that increase took effect on January 1, 2008 and raised the minimum from $.6.65 per hour to $7.15 per hour.
Delaware’s state website says the new minimum wage law will affect about 1.6% of the state’s workers or 6,700 people, the majority of whom are employed by the food service industry.
Though the Delaware minimum wage applies to businesses with over 10 employees, a number of industries are exempt from the state minimum wage law.
Delaware workers in the fishing industry are exempt from the state minimum wage, as are workers who process fish at sea. Domestic service employees who work in or “about” private homes are exempt, so are junior camp counselors working for a non-profit organization and inmates in a Department of Corrections program.
Outside sales people who are paid by commission are exempt from Delaware state minimum wage. Employees who receive tips as part of their earnings can be paid a lot less than minimum wage, as low as $2.23 per hour. The employee can only be paid such a low wage, however, if she or she averages at least $4.92 per hour in tips.
In addition to types of industries being exempt, several types of employees are exempt from Delaware state minimum wage law, too. For a wage less than minimum to be legal, the employer and/or employee must be certified by the Delaware Department of Labor. Disabled employees (both mentally and physically) who work in sheltered workshops may earn less than minimum wage, as may some disabled workers in competitive employment.
Workers in formal apprenticeship programs and student-learners are covered by a special minimum wage.
Delaware is not the only state changing its minimum wage in 2008.
January 1, 2008 saw an increase in state minimum wage for fourteen states, including Montana, Arizona, Iowa and Delaware and ten others. These raises, however, are just the first of many increases slated for 2008.
The first of these increases will occur on July 1, 2008. Three states will enjoy a substantial raise at this time. Kentucky will add 70 cents to its minimum resulting in a new rate of $6.55. West Virginia will also see a 70 cent bump, from $6.55 to $7.25 per hour. Employees in Pennsylvania, however, will see the biggest boost, a 90 cent jump from $6.25 to $7.15
On May 24, 2006, President George W. Bush signed the Fair Minimum Wage Act of 2007 into law. This law set up increases in the federal minimum wage as a three-step system. On July 24, 2008, the second step of the Fair Minimum Wage Act’s system goes into effect. The federal minimum wage will go up from $5.85 to $6.55 per hour.
Texas, Oklahoma, Utah and several other states connect the increases in their state minimum wage rates to when the federal minimum wage goes up. So, when the federal minimum wage increases on July 24, 2008, the minimum wage rates in these states will be increased, too.
These changes in the minimum wage law require employers to update their labor law posters, both for their own state laws, and for the federal law changes. Companies seeking updated information can visit www.laborlawcenter.com.
With so many minimum wage changes on the way, many employers will want to contract with a poster service that automatically delivers quality, laminated posters each time there is an update.
