Federal Minimum Wage will Increase to $7.25

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[Best Syndication News] The United States federal minimum wage will increase from $6.55 to $7.25 per hour effective on July 24th, 2009. This will benefit workers in 30 states and are for those workers that are covered by the federal Fair Labor Standards Act (FLSA).

The Fair Minimum Wage Act of 2007 is a 3-step process to increase the minimum wage hourly rate. The first increase occurred on July 24, 2007, with a minimum wage rate of $5.85 per hour, the second increase happened on July 24, 2088 with an rate change to $6.55 per hour and the last increase is the one that is scheduled to occur on this Friday July 24th, 2009 with the increase reaching $7.25 per hour.

The 30 states that will see the benefits are Alabama, Alaska, Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin and Wyoming. These states either had a minimum wage that was below the federal minimum wage rate or they had no minimum wage at all.

Employees that work in Washington D.C. will receive $8.25 per hour as the federal minimum wage which is $1 more per hour than the federal national level.

The gross income at 40 hours per week making $7.25 calculates out to a yearly income of $15,080.00, a monthly income of $1,256.67, a weekly rate of $290.00 and a daily rate of income of $58.00. This is of course is before taxes and social security is taken out.

The other states may have minimum wage rates that are higher than the federal rate and the employer has to pay whichever is the higher rate.

In addition, employers have to post the FLSA's minimum wage notice explaininmg this act at each of the businesses locations. You can get a free poster from the http://www.wagehour.dol.gov and information on where to place the posters in your workplace to meet the Labor Departments requirements.

By: Marlene Donor



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