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Minimum Wage Rate Increases
State and Federal Minimum Wage Set to Increase This Summer
The Fair Labor Standards Act
(FLSA) establishes federal standards for minimum wages, overtime pay, record-keeping and child labor. These standards affect more than 100 million
workers, both full-time and part-time, in the private and public sectors. [Fair Labor Standards Act of 1938 (FLSA), as amended
(29 USC §201 et seq.; 29 CFR 510-794)]
FLSA amendments last year set the Federal Minimum Wage Rate to increase in
three steps: to $5.85 per hour effective July 24, 2007; to $6.55 per hour effective July 24,
2008; and to $7.25 per hour effective July 24, 2009. A separate provision of the bill brings about phased increases to the minimum
wage in the CNMI and American Samoa, with the goal of bringing the minimum wage in those locations up to the general federal minimum wage over a
number of years. For historical information on the Minimum Wage, click
here.
The minimum wage rates in many states will increase accordingly. Where there is no state-prescribed minimum wage rate, the Federal Minimum Wage Rate Applies. In states where an employee is subject to both the state and federal minimum wage
laws, the employee is generally entitled to the higher of the two minimum wage rates. So, if the state rate is lower than $6.55 per hour (effective July 24, 2008; or
$7.25 per hour effective July 24, 2009) the Federal rate will apply for covered workers in that state. [Fair Labor Standards Act, 29 U. S. C. A §
218].
A number of states key their Minimum Wage to theConsumer Price Index (CPI). The Index is developed and
released by the U.S. Department of Labor’s Bureau
of Labor Statistics (BLS).
More information about the FLSA, including copies of explanatory brochures and
regulatory and interpretative materials, is available from local Wage and Hour
Division offices . | 
