labor lawAdivision of labor law center

January 1, 2008 saw the increase of the minimum wage in several states, some by the establishing new legislation, and others by the implementation of an annual cost-of-living increase.

The cost-of-living increases are calculated based on the CPI (Consumer Price Index), which is a measure of inflation. States increasing their minimum wages using the CPI include Florida, Ohio, Montana, Missouri, Colorado, Vermont and Washington. In these states the minimum wage rose on average between 12 and 15 cents.

Of all the states that implemented an increase in the minimum wage, Montana’s rise of 10 cents from $6.15 to $6.25 was the smallest.

In contrast, New Mexico bumped the minimum wage by $1.35 on January 1, 2008, going from $5.15 to $6.50 per hour. Iowa’s increase of $1.05 from $6.20 to $7.25 may be slightly smaller, but the New Year raise was the second jump in less than a year. Over the past 9 months Iowa’s minimum wage increased a whopping $2.10 per hour.

The federal minimum wage is slated to rise on July 24, 2008, from $5.85 to $6.55 per hour. Federal minimum wage covers the employees of businesses engaged in interstate commerce or companies with annual earnings over $500,000.

The federal minimum wage may apply to individual employees as well as businesses. For example, a worker whose job entails answering out-of-state calls qualifies for the federal minimum wage. A worker who ships packages across state lines would also qualify.

If the federal and state minimum wage laws differ, the employee is entitled to whichever provides the greater benefit.

In California, where the minimum recently jumped to $8.00 per hour, the state wage would apply over the federal rate of $5.85 per hour. A Georgia employee, however, would be entitled to the federal minimum wage, because Georgia’s state minimum is $5.15 per hour.

California’s state minimum isn’t the highest in the country, though. That honor goes to the state of Washington, with a new cost-of-living increase resulting in a minimum wage of $8.07 per hour. California ties for second place with Massachusetts at $8.00 per hour.

January 1, 2008 saw the first of a series of changes in minimum wage laws across the country. Fourteen states, including Arizona, California, Massachusetts and Vermont raised their state minimum wages on that day. However, many states will increase the minimum wage later in the year.

Later in the year, Illinois will add 25 cents to the minimum rate of $7.50 to $7.75 per hour. Michigan will also increase the minimum by 25 cents resulting in a new rate of $7.40 per hour. These changes will go into effect on July 1, 2008, along with changes in three other states.

Pennsylvania workers will receive a raise of 90 cents per hour to $7.15 per hour. West Virginia will add 70 cents to the minimum wage rate resulting in a raise from $6.55 to $7.25 per hour. Kentucky’s minimum will change from $5.85 to $6.55 per hour, which is a foreshadowing of the change in the federal minimum which will occur later in July of 2008.

Ten or more states including Utah and Texas tie the state rate to the federal minimum wage. When the federal rate increases on July 24, 2008, the state rates will as well.

The District of Columbia, which is, of course, not technically a state, connects the minimum wage increases to the federal minimum wage increases, too. On July 24, 2008, D.C. employees will receive a minimum wage of $7.55 per hour, because D.C. law requires the minimum wage rate to be at least $1.00 greater than the federal rate.

As a result of the changes in both federal and state minimum wage laws, employers must update their labor law posters. Companies can get complete updated posters from www.laborlawcenter.com.

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1. Posted by: Iowa Minimum Wage Now $7.25 - Labor Law Center Blog

   [...] In all, fourteen states increased the minimum wage with the new year. [...]

2. Posted by: Massachusetts Minimum Wage Now $8.00 - Labor Law Center Blog

   [...] In all, fourteen states increased the minimum wage with the new year. [...]

3. Posted by: Missouri Minimum Wage Now $6.65 - Labor Law Center Blog

   [...] In all, fourteen states increased the minimum wage with the new year. [...]

4. Posted by: New Mexico Minimum Wage Now $6.50 - Labor Law Center Blog

   [...] January 1, 2008 saw other states increase their minimum wage rates along with New Mexico. Delaware, Oregon, Florida, Iowa, Massachusetts, California, Washington and Vermont all enacted cost-of-living increases to their minimum wage as of the New Year. [...]

5. Posted by: Oregon Minimum Wage Now $7.95 - Labor Law Center Blog

   [...] January 1, 2008 saw an increase in state minimum wage for fourteen states, including Montana, Arizona, Iowa and Delaware and ten others. These raises, however, are just the first of many increases slated for 2008. [...]

6. Posted by: Vermont Minimum Wage Now $7.68 - Labor Law Center Blog

   [...] The year 2008 has already brought several changes in state minimum wage laws, and is slated for several more. [...]

7. Posted by: Washington Minimum Wage Now $8.07 - Labor Law Center Blog

   [...] California, Massachusetts, Vermont, and eleven other states increased their state minimum wage on January 1, 2008, but more wage increases are slated for 2008. [...]