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Minimum wage slated to rise to $7.25 on July 24, 2009

July 7, 2009 by Wayne Schulz

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On July 24, 2009 the federal minimum wage rate is slated to rise from the present $6.55 per hour to $7.25 per hour.

The rate is established by the FLSA (Fair Labor Standards Act) which establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is generally entitled to the higher minimum wage. In all instances you are advised to consult with a business advisor prior to determine what rules apply to your company.

US Department of Labor via Karen Smart at Smart e-Solutions

Update for Connecticut Employers

This just appeared in my email inbox from my friend Corrine Nadolny who represents Paychex in Connecticut:

Good Morning

Of course Connecticut’s minimum wage is higher $8.00 , waitress minimum wage is $5.52 and $7.12 for bartenders.

Hope all is well!

Corrine

Corrine Nadolny
Paychex
55 Capital Blvd., Suite 302
Rocky Hill, Ct 06067
Office (860)257-0677 Ext. 25012
Fax (866)784-5725
cnadolny@paychex.com

As always – consult your tax or accounting professional prior to taking any action. We are not in the business of providing tax advice and any information given is for general knowledge only and not with the intent of having any person rely on the information for making tax decisions. Tax rates and rules change often – be sure to check with your tax advisor prior to implementing any information you find on the Internet.

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Filed Under: schulz consulting Tagged With: minimum wage, sage, Wayne Schulz

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