Wednesday, June 3, 2009

Minimum Wage on the Rise

The Fair Labor Standards Act (FLSA) establishes the minimum wage, among other things.  And guess what?  The federal minimum wage is set to rise.  Starting July 24, 2009 the minimum wage will rise to $7.25 per hour.  

This is just the latest in a series of increases starting in 2007.  From 1997-2006 the minimum wage stood at $5.15.  Then $5.85 in 2007, and $6.55 in 2008.  Time for some fun with numbers:
  • The new minimum wage is 10.7% higher than the current rate
  • An employee earning minimum wage since 2006 will now make 40.8% more than just three years ago
  • Percentage-wise, this year's increase will actually be the lowest since 2007 (the dollar increase has remained constant at $0.70 per year).
For historical minimum wage rates (including figures adjusted for inflation) check InfoPlease here.  For compliance assistance with the FLSA visit the Department of Labor web site here.  Of course, don't forget to check state and local laws!