labor lawAdivision of labor law center

On July 24, 2008, the federal minimum wage increased from $5.85 to $6.55 per hour. On that same date, the minimum wage in Washington, D. C. rose 55 cents from $7.00 to $7.55 per hour.

Although the District of Columbia is technically not a state, like many states, including Oklahoma, Texas, Utah and Virginia, the District of Columbia’s minimum wage is tied to the federal minimum wage. Unlike those states, however, the minimum wage law in D. C doesn’t merely equal the federal minimum wage, but exceeds it by $1 per hour.

 

Many Washington, D. C. businesses aren’t happy with the extra increase, stating that it puts them at a disadvantage with surrounding businesses in Maryland and Virginia. The minimum wage in both of these states is the federal minimum of $6.55 per hour.

 

Though the law created some controversy, Mayor Anthony A. Williams signed the Minimum Wage Emergency Amendment Act on November 20, 2004, giving D.C. its first increase since 1997. Effective January 1, 2005, D.C.’s minimum rose from $6.15 per hour to $6.60 per hour.

 

The FLSA (Fair Labor Standards Act) details how the primary federal minimum wage is to be applied. Businesses with annual earnings of $500,000 and companies that do business with other states are covered by FLSA. In addition, individual employees who deal with out-of-state vendors and customers are covered by FLSA, which means they are eligible for the federal minimum wage–even if the company itself does not conduct interstate business.

 

In this age of electronic communications with so many transactions conducted via the Internet, however, few companies can conduct business without engaging in interstate commerce.

In the case of businesses with employees who are covered by both federal and state minimum wage, the law requires the worker to receive whichever wage provides the greater benefit. Therefore, the majority of workers in D. C. are entitled to the higher D. C. minimum wage.

 

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