labor lawAdivision of labor law center

Most of the states in the country have established minimum wage laws at the state level, including Georgia.

The Georgia minimum wage is currently $5.15 per hour, although almost all employees in the state are entitled to $7.25 per hour under the federal minimum wage. 

However, not every state has a minimum wage. In fact, in Alabama and four other states (Louisiana, Mississippi, South Carolina and Tennessee), if an employee isn’t covered under the federal minimum wage, employers can legally pay that worker as little as $1.00 per hour. That’s assuming, of course, that a company could find an employer willing to work for so little. This is because those states have no minimum wage law.

With the recent increase, every Georgia employers should update his or her federal and Georgia minimum wage posters.

Because of this recent increase, Georgia employers and employers across the country must update their labor law posters. The law requires that whenever a change is made in any labor law, state of federal, companies must display the updates posters in a place where all employees have easy access. Failure to display these posters can result in fines and penalties.

However, even in those states, employees who are eligible for the federal minimum wage must be paid $7.25 per hour. The federal minimum recently increased by 70 cents from $6.55 to $7.25 per hour as part of the Fair Minimum Wage Act of 2007. That Act provided 3 increases in the federal minimum wage over three years. These 70 cent increases took place on July 24 in 2007, in 2008 and in 2009. 

Federal minimum wages are set by the FLSA (Fair Labor Standards Act of 1938). The FLSA applies to all businesses with at least $500,000 in annual revenue and to employers engaged in interstate commerce. FLSA can also apply to individual (more…)

With the most recent hike in the federal minimum wage from $6.55 to $7.25 per hour, there are now 28 states with the same minimum wage. All of these states share the $7.25 minimum wage rate:  Alaska, Arizona, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Indiana, Kentucky, Maine, Maryland, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, West Virginia and Wisconsin.

Some of these states, like Hawaii and Kentucky, had already implemented a minimum wage of $7.25. Others, such as Texas, Utah, Maryland and Indiana, adopt the federal minimum wage automatically. In some of those states, the July 2009 increase was relatively minor. The Florida minimum wage, for example, increased from $7.21 to $7.25 per hour while New York and New Jersey increased from $7.15 to $7.25 per hour.

Even such insignificant increases require employers to update their federal and state minimum wage posters, of course.

Four states have minimum wages lower than the federal rate. Kansas has the dubious honor of being the state with the lowest minimum wage at $2.65 per hour – although that rate will change later this year. The others are:

Arkansas                   $6.25

Minnesota                 $6.15

Wyoming                   $5.15

However, those states do not offer the lowest wages. Five states have never passed a minimum wage law: South Carolina, Mississippi, Alabama, Louisiana and Tennessee. In those states, wages are a private matter between the employer and the employee. Unless the employee is covered by the federal minimum wage law (and most are), the employer can pay any hourly wage he or she likes.

Thirteen states plus the District of Columbia have minimum wages that are higher than the federal rate. The are, in alphabetical order:

California                              $8.00

Colorado                               $7.28

Connecticut                          $8.00

District of Columbia             $8.25

Illinois                                    $8.00

Massachusetts                     $8.00

Michigan                               $7.40

Nevada                                  $7.55

New Mexico                          $7.50 

Ohio                                       $7.30

Oregon                                  $8.40

Rhode Island                        $7.40

Vermont                                $8.06

Washington                          $8.55 

The highest state minimum wage is in Washington, at $8.55 per hour. Oregon is second at $8.40 per hour while Vermont is third with a minimum wage of $8.06 per hour. Those states are likely to remain in the top 3, since each of them implements an annual cost-of-living increase

Illinois, Massachusetts, Connecticut and California are tied in fourth place (more…)

Under state law, the Delaware minimum wage increases automatically if the federal minimum wage is higher. On July 24, 2009 when the federal minimum wage increased, the Delaware minimum wage went from $7.15 per hour to $7.25 per hour.

This makes it critical for Delaware employers to display an updated minimum wage poster.

According to the Delaware Department of Labor, many employers in the state are covered by federal minimum wage law. Many employers in Delaware were affected by the July 24, 2009 increase of the federal minimum wage.

The FLSA or Fair Labor Standards Act of 1938 is the law relevant to the federal minimum and applies to businesses with annual revenue of $500,000 or more, and to companies and individual employees engaged in interstate commerce.

Interstate commerce includes:

·         Accepting or sorting mail from out-of-state

·         Receiving goods from out-of-state vendors

·         Buying from out-of-state vendors

·         Accepting long-distance phone calls

·         Accepting credit card or debit card payments

·         Accepting out-of-state checks

·         Using the Internet, a website or email

A company that does not buy or sell goods out-of-state can still have several workers who engage in interstate commerce on a regular basis. Consider a small hair salon with annual revenue of less than $500,000. This salon serves local customers and buys its supplies locally. (more…)

On July 24, 2009 the Pennsylvania minimum wage increased by 10 cents, from $7.15 per hour to $7.25 per hour.

Many employers wonder why all the fuss about such a small amount of money. However, under state law the Pennsylvania minimum wage cannot be less than the federal minimum wage. When the federal rate increases by 70 cents from $6.55 to $7.25 per hour later this month, by statute, the Pennsylvania minimum wage must increase, as well.

The last increase to the Pennsylvania minimum wage was to $7.15 per hour on January 1, 2007.

Each time the federal or Pennsylvania minimum wage increases, employers must display updated labor law posters. 

Both the Pennsylvania minimum wage and the federal minimum wage increased in 2007 from $5.15 to $5.85 and again in 2008 from $5.85 to $6.55.

The Pennsylvania minimum wage for tipped employees remains at $2.83 per hour. However, if the employee does not average $4.42 per hour in tips over the payroll period, the employer must pay the difference.

The new federal minimum wage essentially eliminates the Pennsylvania training wage. Under state law, an employee under the age of 20 could be paid a lower “training wage” equal to the federal minimum wage during the first 60 days of employment. However, under the current law, the federal and state minimum wage are the same and employers must pay the minimum wage from the first day of employment.

Though this increase may create hardship for employers in this struggling economy, 2009 is the last scheduled increase for the federal minimum rate. At this time, no increase is scheduled for 2010.

Pennsylvania state minimum wage covers the smaller employers. The Pennsylvania minimum wage law is enforced by the Bureau of Labor Law Compliance, a part of the Pennsylvania Department  of Labor and Industry. 

The remaining companies are covered by the (more…)

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, (more…)