labor lawAdivision of labor law center

The federal minimum wage increased by 70 cents from $6.55 to $7.25 per hour on July 24, 2009.

 

Employers should update their federal minimum wage poster. Under the law, an employer who fails to prominently display an updated poster where all employees may see it, can be subject to fines.

 

This increase affects employers differently, depending upon which state the employer is in. By law, when an employee is covered by both the state and federal minimum wage, the employee is entitled to the higher minimum wage.

 

For example, while the new federal minimum wage is $7.25 per hour, the Illinois minimum wage is $8.00 per hour and the Minnesota minimum wage is $6.15 per hour. An Illinois employee is entitled to the state minimum wage of $8.00, because it is higher than the federal minimum wage.

 

An employee in Minnesota covered by both the federal and state minimum wage laws is entitled to the higher federal minimum wage of $7.25 per hour.

 

Thirteen states plus the District of Columbia have minimum wages that are higher than the new federal minimum wage. Those states are California, Colorado, Connecticut, Illinois, Massachusetts, Michigan, New Mexico, Nevada, Ohio, Oregon, Rhode Island, Vermont, and Washington. In those states, employees covered by both laws are entitled to the state minimum wage.

 

Twenty-three states have minimum wages that are the same as the new minimum wage at $7.25 per hour. Those states include: Arizona, Florida, Hawaii, Idaho, Indiana, Iowa, Kentucky, Maryland, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia and West Virginia.

 

The Maine minimum wage is currently $7.25 per hour but will increase to $7/50 per hour on October 1, 2009.

 

Eight states have minimum wages that are lower than the federal minimum wage. In those states, the lower rate applies only to employees who are not covered by the FLSA, the Fair Labor Standards Act or federal minimum wage law. Those states are: Alaska, Arkansas, Delaware, Georgia, Kansas, Minnesota, Wisconsin and Wyoming. In those states, the minimum wage varies from $2.65 to $7.15 per hour.

 

Five states have no minimum wage law at the state level: Mississippi, Alabama, Louisiana, Tennessee and South Carolina. In these states, an employee not covered by the federal minimum wage can be paid any amount.

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1. Posted by: Candice Martin

   We have a labor law poster up at our work place. The new minimum wage increase took effect today. Can we just copy the old information and update it with the new and paste it over top of the old. Or is it by law that we need to get a new poster.

2. Posted by: Amelia

   Hi Candice! For your own protection, please, please get a new poster. Other portions of the law may have changed, and you don’t want to be in violation. Our favorite source for high-quality posters at reasonable cost is http://www.laborlawcenter.com. HTH and thanks for reading the blogs!~ Amelia