The Washingtonian’s View

The U.S. Department of Labor reminds employers and employees that the federal minimum wage will increase to $6.55 on Thursday, July 24. With this change, employees who are covered by the federal Fair Labor Standards Act (FLSA) will be entitled to pay at no less than $6.55 per hour. This is an increase of 70 cents. It will only affect about 2 million workers a raise.

This increase is the second of three provided by the enactment of the Fair Minimum Wage Act of 2007. A third minimum wage increase to $7.25 an hour will become effective on July 24, 2009. Last year, on July 24, the minimum wage increased to $5.85 an hour.

With energy and food prices soaring higher, the increase will barely keep up with the cost of living for many low-wage earners. Smaller employers, in particular, may also pass on the costs of higher wages to consumers.

Earlier this month, former North Carolina Sen. John Edwards joined the chorus of those who want to see an increase across the country, especially in North Carolina and New Jersey.

He was in Newark, New Jersey with members of the Raise the Wage Campaign calling for a hike in the current rate of $7.15 per hour. New Jersey currently has the nation’s 13th highest minimum wage. Edwards and the group want to see it raised to $8.25.

Minimum wage in California is $8.00 an hour and the minimum wage in New York is $7.15 an hour.

Democrat Edwards ran in the early presidential primaries this year and was John Kerry’s running mate in the 2004 presidential election.

This summer also marks the 70th anniversary of the FLSA, the federal law providing minimum wage, overtime and youth employment standards. This law established the Labor Department’s Wage and Hour Division, authorizing it to enforce the provisions of the law, and to educate the public on the law’s protections and requirements.

Every employer of employees subject to the FLSA’s minimum wage provisions must post, and keep posted in each of its establishments, a notice explaining the act. These notices must be posted in conspicuous places so as to permit employees to readily read them. Updated posters and other compliance assistance materials concerning the minimum wage increase are available free of charge from the Wage and Hour Division and may also be obtained from the agency’s Web site at http://www.wagehour.dol.gov.

Many states have minimum wage laws with provisions that differ from the federal law. When an employer is subject to both the federal and state wage laws, the employer must comply with the provisions of each law.

Employers and employees seeking more compliance information on the increased minimum wage may call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243).

The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Remember, covered nonexempt workers are entitled to a minimum wage will receive not less than $6.55 per hour effective tomorrow, July 24, 2008; and $7.25 per hour effective July 24, 2009.

Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

• FLSA Minimum Wage: The federal minimum wage is $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
• FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.
• Hours Worked (PDF): Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
• Recordkeeping (PDF): Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.
• Youth Employment: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.