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August 2009

Federal Minimum Wage Increase

The federal minimum wage under the Fair Labor Standards Act, formerly $6.55 per hour, increased to $7.25 on Friday, July 24, 2009. With this change, employees who are covered by the federal Fair Labor Standards Act will be entitled to be paid no less than $7.25 per hour. Tipped employees and certain other workers are exempt or subject to different standards. This increase is the last of three provided by the enactment of the Fair Minimum Wage Act of 2007. In California, the minimum wage under state law is higher than the federal minimum wage, so this change will have relatively little impact. A revised Federal minimum wage poster is now available for viewing, downloading, and posting. Every employer of employees subject to the Fair Labor Standard Act’s minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments so as to permit employees to readily read it.