Legislation
Federal minimum wage increase in July
The federal minimum wage increased in July, and several states with wage rates tied to federal law are seeing changes as well. The Act provides for a three-step increase in the federal minimum wage, beginning with an initial increase from the current $5.15 per hour to $5.85 per hour effective July 24, 2007. The federal minimum wage will increase again one year later, to $6.55 per hour, and again two years later, to $7.25 per hour.
Impact on the states: Employers of employees who are subject to both state and federal minimum hour wage rates will have to comply by paying the employee the greater of the two rates. In addition, there are several states whose wage rates are tied to changes in the federal rate.