Minimum Wage Increase

On July 24, 2009, the federal minimum wage for non-exempt employees increases from $6.55 per hour to $7.25 per hour. This is the final phase of the wage increase that was enacted under the Fair Minimum Wage Act of 2007.

Employers of tipped employees are still only required to pay $2.13 per hour if that amount plus tips received equals the federal minimum wage and:

The employer informed the employee that the tip credit is being taken;

The employee keeps all tips unless they participate in a tip sharing arrangement;

The employee customarily and regularly receives more than $30 per month in tips.

The youth minimum wage also remains the same. Employees under 20 years of age may be paid $4.25 per hour during their first 90 consecutive calendar days of employment.

Many states also have minimum wage laws requiring employers to comply with both. Additional information is available on the Department of Labor website.