Federal Minimum Wage - National Wage Information

 
Federal minimum wage. The federal minimum wage in the United States changed on July 24, 2007, to $5.85 per hour. On July 24, 2008, it will change again to $6.55 per hour, and then on July 24, 2009, it will again change to $7.25 per hour. This became effective when President Bush signed a bill which amended the FLSA (Fair Labor Standards Act) on May 25, 2007. The minimum wage is to be raised in three steps. Anyone working over 40 hours per week is also entitled to overtime pay which is 1 ½ times the wage they are getting per hour.

There are some states which have their own minimum wage laws and the individuals have to be paid the larger of the two, whether it be the state requirement or the federal requirement as set forth by the Fair Labor Standards Act.

There are a few exceptions to this bill and they involve students, individuals who are disabled, or those under 20 years of age. There is also an exception to those who receive tips where they work. If they receive tips, the minimum wage for them is $2.13. However, if the individual does not get at least $30 per month in tips and/or their tips and wages do not add up to the federal minimum of $5.85, the employer is obligated to make up the difference. If the individual is under 20 years of age, or is disabled, the employer can pay them a minimum of $4.25 per hour for their first 90 days of work, or if they turn 20 years old, then they are to receive the standard federal minimum of $5.85 per hour. The wages which should be paid should not be less than 85% of the federal minimum wage. If the individual is a student in vo-tech, and is over 16, the wages should be at least 75% of the minimum wage.

The minimum wage law applies to employees who have annual gross sales of at least 500,000. It also applies to companies that are smaller who are engaged in interstate commerce, communications, or production of goods for commerce. You can check out the reference guide to the Fair Labor Standards Act by calling 1-888-487-9243 and requesting a printed copy of the guide, or it can be read online. This guide is available through the Wage and Hour Division of the U. S. Department of Labor. This department of the federal government is responsible for making sure these minimum wage laws are carried out. If you have a problem with an employer, this department is the one to contact about it.
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