labor lawAdivision of labor law center

Five states increased their minimum wages effective July 1, 2008. They include: Illinois, Michigan, West Virginia, Kentucky and Nevada.

 

In Illinois, the state minimum wage increased 25 cents from $7.50 to $7.75 per hour. This is the second step in a 3-tiered increase. The state minimum wage will increase again in 2009. The law applies to any employer with 4 or more workers who are not family members.  More details here.

 

Michigan’s minimum wage also increased 25 cents per hour from $7.15 to $7.40.  The state minimum wage has risen nearly $2.00 since 2005, despite sluggish job growth, problems for the automotive industry and the loss of a number of major employers. The law applies to employers with 2 or more workers. More details here.

 

The West Virginia minimum wage increased 70 cents from $6.55 to $7.25 per hour. In an aggressive 2006 move to increase the state minimum wage, the rate increases by $2.10 in three increments in just over two years. The law applies to employers with 6 or more workers at one location.  Click here for complete information.

 

In Kentucky the minimum wage increased 70 cents from $5.85 to $6.55 per hour.
The prior Kentucky minimum wage was at the same level as the federal rate. This increase is the first time the state minimum wage will be higher, if only for 3 weeks. Details are here.

 

The Nevada minimum wage increased 52 cents from $6.33 to $6.85 per hour. Under a unique provision of the law, employers who offer an approved healthcare plan can pay just $5.85 per hour, up from $5.30 per hour. Read more here.

 

On July 24, 2008 the federal minimum wage will increase 70 cents from $5.85 to $6.55 per hour. This increase will be mirrored in 13 states that adopt the federal minimum wage for virtually all employers. These states are: 

• Indiana
• Idaho
• Maryland
• North Carolina
• North Dakota
• Oklahoma
• South Dakota
• Texas
• Utah
• Virginia
• Montana
• Nebraska
• New Hampshire 

Minimum wage in Puerto Rico will also be affected.

 

The federal minimum wage applies to employers with annual revenue of $500,000 or more, and those who engage in interstate commerce. When both state and federal law applies, employees are covered under whichever provides the greatest benefit. So in Illinois, the state minimum wage would apply. In Georgia, where the state minimum wage is lower, the federal minimum wage will apply. 

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