Minimum Wage Increases Federally And In 16 Jurisdictions

Effective Friday, July 24, 2009, the federal minimum wage will increase again to $7.25 per hour for all those employees covered under the minimum wage requirements of the Fair Labor Standards Act of 1938, as amended ("FLSA"). This July 24, 2009 increase is the final increase scheduled pursuant to the Fair Minimum Wage Act of 2007, which amended the FLSA to gradually increase the federal minimum wage from $5.15 per hour to $7.25 per hour between 2007 and 2009. While many states already have enacted minimum wage rates equal to or higher than $7.25 per hour, the United States Department of Labor reports that 15 states and the District of Columbia will be increasing their own minimum wage rates to reflect this new federal minimum wage effective July 24, 2009. Specifically, Delaware, Idaho, Indiana, Maryland, Montana, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Utah and Virginia will increase their minimum wage to $7.25 per hour and the District of Columbia will increase its minimum wage to $8.25 per hour.

Employers must ensure that they are paying their covered employees no less than the minimum wage required by applicable federal and state law. If you have any questions regarding the increase in the minimum wage or your company's payroll practices, please contact any of the attorneys listed below or your usual Crowell & Moring contact.