Minimum Wage Increase

The Department of Labor (DOL) reminds us that the federal minimum hourly wage will increase to $7.25 per hour on July 24, 2009.  This is the final of the three scheduled increases put in place by the Fair Minimum Wage Act of 2007.

Following adoption of the Fair Minimum Wage Act of 2007, many states voted to tie their own minimum wage rate to changes in the federal rate. Some states, such as West Virginia, whose minimum wage increases brought them up to $7.25 per hour as of July 2008, moved quickly to make this increase. Most recently, Kansas and Alaska increased their rates. California, Colorado, Connecticut, the District of Columbia, Illinois, Massachusetts, Michigan, Nevada, New Mexico, Ohio, Oregon, Rhode Island, Vermont and Washington will continue to have higher minimum wage rates than the federal, with Oregon, at $8.40 per hour, and Washington, at $8.55 per hour, having the highest wage rates in the nation.

Only Arkansas, Georgia, Kansas, Minnesota and Wyoming will have lower wage rates come this July 24. However, for Kansas - which historically has had the lowest minimum wage at $2.65 per hour - those businesses and organizations subject to federal law will see an increase to $7.25 an hour on July 24, and then the state minimum wage rate for all others will be set at $7.25 per hour on January 1, 2010.

For more information on minimum wage rates, check out the DOL’s website section on this topic.

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