labor lawAdivision of labor law center

Wisconsin employers need to be aware of their responsibilities as the federal minimum wage increases. Within 60 days after the President signs the measure into law, the federal minimum wage will increase from $5.15 per hour to $5.85 per hour. This is only the first of three 70-cent increases.

One year after the first increase, the second will go into effect, raising the federal minimum wage from $5.85 to $6.55. A year after that, the final stage will kick in, increasing the federal minimum wage to its final level of $7.25 per hour.

Many Badger State employers feel that these changes don’t affect them because the state minimum wage is already higher than the new federal rate. However, Wisconsin employers are still responsible for displaying an accurate, updated federal minimum wage poster, even if the rate doesn’t apply to their workers.

Some analysts argue that an increase in minimum wage does little to improve the quality of life for the lowest income workers. They also point out that for some small businesses that are operating on tight margins; an increase in the minimum wage might put them out of business. Proponents of a minimum wage increase point out that many of those small businesses are not subject to the federal minimum wage, unless they conduct interstate commerce. Many of those businesses will simply pass the few cents increase on to the consumer.

Under federal and state law, employers are responsible for displaying updated federal and Wisconsin minimum wage posters. These posters must be updated with each rate change – at least three changes between 2007 and 2009.

Here’s a good idea one of my readers sent in: consider signing up for a labor law poster service. Busy employers find it difficult to stay current with so many changes to labor law posters. For a reasonable fee, these services will mail the employer a new poster automatically each time there is a change in posting requirements.

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