Federal Minimum Wage to Increase to $7.25 by 2009

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May 30, 2007

Known as the “Fair Minimum Wage Act of 2007,” a new law will amend the Fair Labor Standards Act (FLSA) to raise the federal minimum wage to $5.85 an hour 60 days after enactment, to $6.55 an hour one year later, and then to $7.25 an hour in 2009. This will result in a 41% increase in the minimum wage, which has held steady at $5.15 an hour since 1997. President George W. Bush is expected to sign the bill into law soon.
This is the first increase in the federal minimum wage rate in 10 years since the Fair Labor Standards Act established the minimum wage in 1938. The increase is a result of a Congressional compromise on the Iraq bill, in which Democrats abandoned their insistence on a timetable for the withdrawal of troops. The House of Representatives passed a reworked bill on May 24 and, less than two hours later, the Senate passed the bill. Wisconsin’s minimum wage is currently $6.50 per hour. Look for it to increase as well.
If you have questions regarding the above, please contact any of the attorneys in the Employment, Benefits & Labor Relations Practice Group of Ruder Ware.

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