Federal Minimum Wage Set to Increase on July 24

By Planet Laundry staff | Jul 22, 2009

Many employers across the United States are bracing for the much-ballyhooed boost in the federal minimum wage. This Friday, July 24, the federal minimum will jump to $7.25. 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 last of three provided by the enactment of the Fair Minimum Wage Act of 2007, which amended the 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.

The latest change will directly benefit workers in 30 states where the state minimum wage is currently at or below the federal minimum wage, or there is no state minimum wage at all. Those 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, Wisconsin and Wyoming.

The increase also will mean a raise for some workers in the District of Columbia, where the minimum wage is required to be $1 more than the federal standard.

In addition, every employer of workers subject to the FLSA's minimum wage provisions must post a notice explaining this act. The notice must be posted in conspicuous places to enable employees to readily read them. Posters and other compliance assistance materials concerning the minimum wage increase are available free of charge from the Labor Department's Wage and Hour Division and may also be obtained from the agency's Web site.

Many states have minimum wage laws with provisions that differ from the federal law. When an employer is subject to both, the employer must pay the higher of the two rates.

Laundry owners seeking more compliance information on the increased minimum wage can call the Wage and Hour Division's toll-free helpline at (866) 4US-WAGE (487-9243).

For a look at the minimum wage requirements by state, click here.