Mininum Wage Hike To Take Effect July 24 in 31 States

Millions of American workers are about to get a federally-mandated raise, which will go into effect on July 24. The raise, which was implemented two years ago before the recession, represents the final wage hike in a three-step boost to the federal minimum wage increase passed by Congress. The minimum wage will rise 70 cents — or about 11% — to $7.25 per hour from $6.55. (Last summer, it went up 70 cents from $5.85.) Whether Congress would have approved the wage hike had legislators known how dismal the economy would look two years later is an open question. But there’s no doubt the timing is awkward. The hike will give about 4.5 million workers a raise and boost hourly wages by $1.6 billion a year, according to the Economic Policy Institute. The final phase of the federal minimum wage hike will impact 31 states whose minimum wage levels are below $7.25, including Florida, Pennsylvania, Nebraska and New York. Firms in these states will have to match the federal minimum. The increase has no bearing on 20 states (including Washington, D.C.), which already mandate an hourly wage of $7.25 or...

Mininum Wage Hike To Take Effect July 24 in 31 States

Millions of American workers are about to get a federally-mandated raise, which will go into effect on July 24. The raise, which was implemented two years ago before the recession, represents the final wage hike in a three-step boost to the federal minimum wage increase passed by Congress. The minimum wage will rise 70 cents — or about 11% — to $7.25 per hour from $6.55. (Last summer, it went up 70 cents from $5.85.) Whether Congress would have approved the wage hike had legislators known how dismal the economy would look two years later is an open question. But there’s no doubt the timing is awkward. The hike will give about 4.5 million workers a raise and boost hourly wages by $1.6 billion a year, according to the Economic Policy Institute. The final phase of the federal minimum wage hike will impact 31 states whose minimum wage levels are below $7.25, including Florida, Pennsylvania, Nebraska and New York. Firms in these states will have to match the federal minimum. The increase has no bearing on 20 states (including Washington, D.C.), which already mandate an hourly wage of $7.25 or...

Second Minimum Wage Increase Takes Effect

On July 24, 2008, the federal minimum wage rose from $5.85 per hour to $6.55 per hour. It is the second of three scheduled increases to the federal minimum wage. Covered employers must post notices outlining the federal minimum wage requirements. The notices must be posted conspicuously and in enough places so employees can see them as they enter and exit the workplace. Posters are available from the U.S. Department of Labor and are posted on HR.BLR.com. The first of the three scheduled increases took place in July 2007. The third increase will take effect on July 24, 2009, when the minimum wage will rise to $7.25 per hour. Most states have passed their own minimum wage law, and many of the states have minimum wages that differ from the federal rate. Employers in the following states will be effected as these state’s do not have minimum wage requirements that exceeds the federal government minimum increase: * Alabama * Arkansas (state law is not tied to federal law, so employers covered by state, but not federal law, will not be required to pay federal minimum wage.) * Georgia * Idaho * Indiana * Kansas * Louisiana * Maryland * Minnesota * Mississippi * Montana * Nebraska * New Hampshire * New Mexico * North Carolina * North Dakota * Oklahoma * South Carolina * South Dakota * Tennessee * Texas * Utah * Virginia * Wisconsin (state law is not tied to federal law, so employers covered by state, but not federal law, will not be required to pay federal minimum wage.) * Wyoming (state law is not tied...