labor lawAdivision of labor law center

The federal minimum wage will increase by 70 cents on July 24, 2009 from $6.55 to $7.25 per hour. The increase is the third increase mandated by the Fair Minimum Wage Act of 2007.

Under Texas law, the state minimum wage must be at least as high as the federal minimum, which means that when the federal minimum wage increases, the Texas minimum increases, too.

Therefore, on July 24, 2009, when the federal minimum increases to $7.25 per hour, the Texas state minimum will also increase to $7.25 per hour. Texas is one of 12 states, including Maryland, Idaho, North Dakota and Virginia, which ties its minimum to the federal minimum wage.

The US Department of Labor reports that the Texas minimum wage statute doesn’t even state a dollar amount, simply that the state adopts the federal rate.

Under Texas minimum wage law, any employee covered by the Fair Labor Standards Act (FLSA) is excluded from Texas minimum wage. The FLSA is the main federal minimum wage law and covers employers that engage in interstate commerce and those with annual earnings of $500,000 or more.

An article in Texas Business Today (more…)

Employers have already been warned that the state minimum wage will increase with the new year in Oregon, Washington, Florida, New Mexico, Vermont, Colorado, Arizona, Missouri, Montana, Ohio and Connecticut.

However, employers in other states also have to contend with minimum wage increases this year.

Even if an employer has no minimum wage employees, each increase means the employer must update his or her minimum wage posters. By law, employers are required to display a variety of labor law posters prominently in the workplace. Failure to do so can result in fines, penalties and citations.

On July 1, 2009 the Illinois minimum wage will increase by 50 cents, from $7.50 to $8.00 per hour. This is the final step in a 3-tiered increase introduced by the now-infamous (more…)

Employers in several states, including Mississippi, Colorado and Arizona, are required by law to use E-Verify to check every new employee’s documentation.

In Texas, Hawaii, Michigan and eleven other states, employers are strongly urged to use E-Verify.

Tax incentives are offered in some states, like Georgia, to employers that utilize E-Verify. Government employees, state contractors and sub-contractors are already required to use E-Verify by most states.

Many states are (more…)

The U.S. Department of Labor has filed a lawsuit on September 25, 2008 against Houston-based CEMEX Inc. for overtime violations. The suit maintains that the company failed to pay $5 million in overtime to more than 2,000 drivers from eight states. The employees were drivers of ready-mix concrete trucks.

CEMEX, founded in Mexico in 1906, provides cement and other building supplies for the construction industry. The company’s website claims it employers more than 60,000 employees in 50 countries on 5 continents.

Affected employees of CEMEX worked in Texas, (more…)

On September 24, the U.S. Department of Labor announced a grant of more than $15 million to Texas in the wake of Hurricane Ike. Of the total grant, $7.9 million will be released initially. The balance will be released as the state demonstrates a continued need for disaster assistance.

“This $15.9 million National Emergency Grant  will put several hundred Texans to work helping communities recover from Hurricane Ike damage,” said Secretary of Labor Elaine L. Chao. “This grant will also fund humanitarian assistance such as food, clothing, shelter and other critical aid that Texans affected by the hurricane devastation are in need of.”

The grant, totaling $15,883,200 will be used to (more…)