Federal Minimum Wage Set for Second Stage of Increase

The federal minimum wage will become $6.55 per hour on July 24, 2008. The 70-cent raise from 5.85 per hour is the second stage of a two-year, three-phased increase of the wage, which began in July 2007.

To comply with the U.S. Department of Labor (DOL) regulations governing the wage increase, all employers that hire workers subject to minimum wage provisions of the Fair Labor Standards Act must display posters explaining the wage increase. The posters must be hung in a conspicuous place, and businesses should allow their employees to read the notice.

Businesses, even organizations located in states where the minimum wage is higher than the federal hourly rate, should display the DOL-approved notices before the wage increase takes effect, officials say.

Congress approved the first increase to the federal minimum wage in 10 years in May 2007, as part of a supplemental spending package for the conflict in Iraq. The minimum wage increase had been included in the funding bill as a compromise proposal. President Bush signed the legislation (PL 110-28) into law on May 24, 2007.

Under the law, the federal minimum wage was set to be increased $2.10 per hour in three 70-cent increments. The third and final phase will increase the wage to $7.25 per hour and will take effect on July 24, 2009.

Source: SHRM Online

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