labor lawAdivision of labor law center

When the federal minimum wage increased from $6.55 per hour to $7.25 on July 24, 2009, most employers in South Carolina were affected.

 

South Carolina doesn’t have a state minimum wage. In fact, if a South Carolina employee is not eligible for the federal minimum wage, he or she can legally be paid a mere $1.00 per hour or less. Due to use of the Internet and credit cards, though, most employees in South Carolina are entitled to the federal minimum wage.

 

The Fair Labor Standards Act of 1938 is the relevant law for the federal minimum wage. This law applies to employers with annual revenue of $500,000 or more and to employers engaged in interstate commerce.

 

Interstate commerce is defined as any business that takes place across state lines. The Internet, email, answering out -of-state phone calls, shipping packages to other states all qualify as interstate commerce, so most employers in South Carolina and throughout the US are engaged in interstate commerce.

 

The increase to the federal minimum wage on July 24, 2009, was the latest and last of three increases provided by the Fair Minimum Wage Act of 2007. Each increase was 70 cents and occurred on July 24^th in 2007, in 2008 and in 2009.

 

The July 24, 2009 increase was not the only minimum wage bump in 2009. On January 1, 2009, several states, such as Washington and Florida, added cost of living increases to their state minimum wage. On July 1, 2009, Kentucky increased its minimum to $7.25 per hour and Nevada bumped its minimum to $7.55 per hour. On October 1, 2009, Maine will increase its state minimum to $7.50 per hour.

 

Several states, including Texas and Utah, tie their state minimum to the federal minimum. When the minimum increased to $7.25 per hour on July 24, 2009, the minimum in these states increased to $7.25 per hour, too.

 

All employers, including those in South Carolina, are required to display updated labor law posters so they are accessible for all employees. With these recent increases, employers should take this opportunity to ensure their posters are current.

 

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