The minimum wage in West Virginia is $5.85 per hour with overtime payment at a rate of 1 ½ times the regular hourly rate of pay for all hours worked over forty hours in a seven consecutive day period. In July of 2007 the minimum wage will increase to $6.55 per hour and in July 2008 to $7.25 per hour. The minimum wage rate applies to employers with six or more employees with at least $500,000 in annual gross income and doesn’t apply to any business involved in interstate commerce.
This three step increment increase originally was surrounded by much debate because its focus was on a limited scope. The legislators found that West Virginia law has some peculiarities that involves definitions and exemptions of employers. The current bill will only affect around 2,000 of West Virginia’s 20,000 minimum-wage workers. However, plans are underway for the next legislator session to try to amend the state law so it will cover all workers.
In addition, tipped employees will receive a maximum tip credit increase from the current $1.03 per hour to $1.17 per hour. In July of 2007 it will increase to $1.31 per hour and finally in July of 2008 it will increase to $1.45 per hour. As a result the current minimum cash wage for tipped employees is $4.68 per hour and will increase to $5.24 per hour in 2007. Finally, in 2008 the minimum cash wage for tipped employees will increase to $5.80 per hour. The training/youth minimum wage also increased from $4.25 per hour to $5.15 per hour; however this rate will remain the same in the following years.
West Virginia is just one of many states to increase its minimum wage in order to help its low income workers make a decent living. The bill was signed into law by West Virginia Governor Joe Manchin on April 5, 2006.