The overwhelming majority of Alabama employers were affected by the federal minimum wage increase in July, 2009.
Although there is no Alabama minimum wage, most employers in the state are covered by the federal minimum wage.
On July 24, 2009 the federal minimum wage increased by 70 cents from $6.55 per hour to $7.25 per hour.
This is not the first increase for Alabama employers. The federal minimum wage increased from $5.15 to $5.85 per hour in 2007 and from $5.85 to $6.55 in 2008.
At present, the federal minimum wage in not scheduled to increase again in 2010. This could be good new for employers which are facing hard times in the current struggling economy.
Alabama is one of five states that have no minimum wage at the state level. Others include Mississippi, Louisiana, South Carolina and Tennessee.
In addition, effective July 24, 2009 there are 8 states that have a minimum wage lower than the federal rate. They are Arkansas, Georgia, Kansas, Minnesota, Wisconsin, Wyoming, Alaska and Delaware.
In just two years, Alaska has gone from having one of the highest state minimum wages to having one of the lowest rates.
Seventeen other states increased the state minimum wage to match the federal minimum wage increase on July 24, 2009. They are: Florida, Missouri, Montana, New Jersey, New York, Pennsylvania, Idaho, Indiana, Maryland, Nebraska, North Carolina, North Dakota, Oklahoma, South Dakota, Texas, Utah and Virginia.
Larger employers in Alabama are covered by the federal Fair Labor Standards Act or FLSA. The FLSA applies to employers that do business across states (interstate commerce) with revenue of at least $500,000 per year. Individual employees who answer out-of-state phone calls or who ship packages to other states are considered to be engaged in interstate commerce. These employees are covered by FLSA, even if the company as a whole is not.
In addition, the FLSA covers hospitals, health care facilities and schools. Government agencies (federal, state and local) are covered by FLSA as well. The U.S. Department of Labor at www.dol.gov, specifically the Wage and Hour Division, is charged with enforcing FLSA.
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