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Federal Minimum Wage Increase |
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On May 25, 2007, President Bush signed the Fair Minimum Wage Act of 2007 which increases the Federal Minimum Wage from $5.15 to $7.25 an hour over the next two years. The first phase of the increase, taking the minimum wage up to $5.85 an hour, takes effect on July 24, 2007. Some state minimum wage regulations will also be affected by this change.
Many of our customers have contacted us with questions about how the increase may affect your current labor law postings.
Q: With the new law requiring a phase-in of the federal minimum wage increase over three dates, will my postings need to be updated several times this year? Or, will all three wages be detailed on one updated poster?
A: The answer is, on 7/3/07, the D.O.L released all three wage changes on one poster. At the state level, phased increases have sometimes required multiple updates to postings within a year, and sometimes one posting has shown multiple dates and wage changes. A three-date increase could be handled either way.
Poster Guard™ Compliance Protection by G.Neil monitors these developments on your behalf and automatically provides you with timely, updated postings in accordance with all posting guidelines, even if the change requires multiple new posters.
Q: Am I required to post the new federal minimum wage if my state minimum wage is still higher after the increase?
A: Both postings are required in every state, regardless of whether the wage rates are higher, lower or the same.
Q: My state minimum wage is now lower than the federal minimum wage, but it was higher previously? Is my state minimum wage posting likely to change soon as well?
A: There are several reasons why a state may require a higher wage than the federal minimum wage. These may include cost-of-living comparisons, economic stimulus activities, makeup of the workforce and other political and social priorities. In 1997, when the federal minimum wage was last updated, the state minimum wage rates in several states also increased within the same year. Currently, state minimum wage increases are pending in about 15 states, so the same trend is likely in 2007.
With the increased pace and scope of regulatory posting changes, Poster Guard™ Compliance Protection by G.Neil brings you a cost-effective solution to purchasing multiple posting updates at both the state and federal level. But, more important, you enjoy the convenience and confidence of knowing that any change affecting your business – even those that receive little or no news coverage – will be researched and analyzed, and updated postings will be sent to you automatically. Guaranteed.
Q: Which minimum wage will I be required to follow if my state minimum wage is different from the new federal minimum wage?
A: As a general rule, whenever a state and federal law conflict, employers must follow the law that is more generous to employees, which means applying the rule that includes the higher minimum wage. In extremely rare cases when the federal minimum wage laws do not apply to a particular business or individual employee, the employer would default to the state minimum wage.
Learn more about the federal minimum wage and how it affects your business. |
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