Federal minimum wage will increase to $7.25 on July 24

Cecily Wei
July 24, 2009 — 2,231 views  
Become a Bronze Member for monthly eNewsletter, articles, and white papers.

Effective this Friday, July 24, 2009, the federal minimum wage rate for covered non-exempt employees will increase from $6.55 per hour to $7.25 per hour. With this change, employees who are covered by the federal Fair Labor Standards Act (FLSA) will be entitled to pay no less than $7.25 per hour.

This increase is the third and final of three provided by the enactment of the Fair Minimum Wage Act of 2007, which amended the federal Fair Labor Standards Act (FLSA) to increase the federal minimum wage in three steps: to $5.85 per hour effective July 24, 2007; to $6.55 per hour effective July 24, 2008; and now to $7.25 per hour effective July 24, 2009. Workers from 30 states, where the state minimum wage is currently at or below the federal minimum wage, or there is no state minimum wage, will get benefits. Besides, it will also benefit workers in the District of Columbia, where the minimum wage is required to be $1 more than the federal minimum wage. Covered employers from other states, who have a minimum wage rate that is higher than the federal rate, must comply with both state and federal laws.

"This administration is committed to improving the lives of working families across the nation, and the increase in the minimum wage is another important step in the right direction," said Secretary of Labor Hilda L. Solis. "This well-deserved increase will help workers better provide for their families in the face of today's economic challenges. I am especially pleased that the change will benefit working women, who make up two-thirds of minimum wage earners."

About the Author

Labor law posters for your business's compliance needs. PosterSolution.com provides a wide range of required state labor law posters, federal labor law posters, and combination labor law posters. Get professional compliance posters and service from Postersolution.

Cecily Wei