Montana Minimum Wage Now $6.25

January 18th, 2008 Posted by Amelia

On October 2, 2007, the Montana Department of Labor and Industry issued a statement regarding an upcoming increase in the state minimum wage.

On January 1, 2008, the new state minimum wage went into effect with a 10 cent bump from $6.15 per hour to $6.25 per hour. Businesses earning less than $110,000 annually, however, are allowed to pay employees $4.00 per hour.

Montana Initiative 151 requires the state to annually adjust its minimum wage. The cost of living, as determined by the CPI (Consumer Price Index for All Urban Consumers) from August 2006 to August 2007, determines how the minimum wage is adjusted. In 2007, the CPI increase was 1.97%, which means an increase of 12.11 cents for Montana’s minimum of $6.15. Montana statute rounded the amount to 10 cents.

Montana will enjoy another minimum wage increase in 2008. State law mandates that the state minimum wage must be on par with the federal minimum wage. The federal minimum wage is slated to go up 70 cents from $5.85 to $6.55 on July 24, 2008. Since that is higher than the January 1, 2008 Montana minimum wage of $6.25 per hour, Montana’s rate will also increase to $6.55 on July 24, 2008.

Montana, along with only six other states, does not permit businesses to pay tipped workers less than the state minimum wage. As of the January 1, 2008 increase, according to Labor Commissioner Keith Kelly, tipped employees are entitled to $6.25 per hour. If the business earns less than $110,000 per year in gross revenue, however, the tipped employees can be paid $4.00 per hour.

Alaska, California, Minnesota, Nevada, Oregon and Washington are the other states that do not allow companies to pay lower wages to tipped workers. Tipped employees in these states, such as bellhops, valets and servers, must be paid between $5.25 and $8.07 per hour.

When federal and state minimum wage laws change, all Montana employers must update their labor law posters. Failure to post the updates can result in a fine. For information on updates, companies can go to www.laborlawcenter.com.

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.

Later in the year, Illinois will add 25 cents to its minimum of $7.50 to $7.75 per hour. Michigan will also increase its 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 its 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.

On May 24, 2006, President George W. Bush signed the Fair Minimum Wage Act of 2007 into law. This law established a three-step system to raise the federal minimum wage.

On July 24, 2008, the federal minimum wage rate will increase from $5.85 to $6.55 per hour.

President George W. Bush signed the increase into law on May 24, 2006 as part of the Fair Minimum Wage Act of 2007. This Act established a three-tier system to increase the federal minimum wage. The bump on July 24, 2008 is the second step of the system.

The District of Columbia connects its 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 its minimum wage rate to be at least $1.00 greater than the federal rate.

Last 10 posts by Amelia

« Missouri Minimum Wage Now $6.65
New Mexico Minimum Wage Now $6.50 »
Posted in Employment Laws, Minimum Wage, Montana, Wage and Hour

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