The final phase of the 2007 amendment to the Fair Labor Standards Act goes into effect on July 24, 2009 raising the federal minimum wage to $7.25 per hour. This third, and last phase of the amendment, increases the federal minimum wage from $6.55 to $7.25 per hour. Employers must pay their employees at least minimum wage for all non-overtime hours worked (and one and one half times the employees’ regular rate of pay of all overtime hours).
Because most states have minimum wage requirements, employers must ensure that they pay their employees in accordance with the higher of the federal or state minimum wage. Many states’ minimum wage already equals or exceeds the new federal minimum wage. For example, Ohio’s current minimum wage is $7.30. As a result, Ohio employers should already pay their employees at a rate above the new federal minimum wage. Likewise, employers in the following states with minimum wage requirements equal to or higher than $7.25 should already be in compliance with the new federal minimum wage:
| Arizona | Illinois | New Hampshire | Vermont |
| California | Iowa | New Mexico | Washington |
| Colorado | Maine | Ohio | West Virginia |
| Connecticut | Massachusetts | Oregon | |
| Hawaii | Michigan | Rhode Island |
Employers in those states with no minimum wage laws, minimum wage rates below the new federal minimum wage rate or those states that follow the federal minimum wage law should review their employees’ rates of pay to ensure compliance with the new requirements. Employers may need to increase employee rates of pay in the following states:
| Alabama | Kansas | Nebraska | South Carolina |
| Alaska | Kentucky | Nevada | South Dakota |
| Arkansas | Louisiana | New Jersey | Tennessee |
| Delaware | Maryland | New York | Texas |
| Florida | Minnesota | North Carolina | Utah |
| Georgia | Mississippi | North Dakota | Virginia |
| Idaho | Missouri | Oklahoma | Wisconsin |
| Indiana | Montana | Pennsylvania | Wyoming |
Employers in Washington, D.C. must ensure that their employees receive at least the federal minimum wage plus $1.00. As such, Washington, D.C. employees should receive $8.25 or more per hour for all non-overtime hours worked.
As the new federal minimum wage goes into effect, employers throughout the country should review their employees’ hourly rates of pay to ensure that each employee receives at least the higher of their particular state’s minimum wage or the new federal minimum wage.
*Michele L. Jakubs is an OSBA Certified Specialist in Labor and Employment Law and has extensive experience in all aspects of workplace law, including the Fair Labor Standards Act. For more information about defending allegations of public policy discrimination, please contact Michele at 216.696.4441 or mlj@zrlaw.com.