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Minimum Wage...What is it now?

Federal minimum wage increase is effective July 24, 2008
The federal minimum wage to be paid by covered employers is $6.55 an hour effective July 24, 2008; and
$7.25 an hour effective July 24, 2009. These employers include:

• businesses that produce or handle goods for interstate commerce;
• businesses with annual dollar volume of business of $500,000 or more; and
• certain other businesses, including hospitals and nursing homes, private and public schools, and federal, state and local government agencies.

The Minnesota minimum wage is $5.25 for small employers (annual sales volume of less than $625,000) and $6.15 for large employers (annual sales volume of more than $625,000); a $4.90 training wage may be paid to new employees under the age of 20 during their first 90 days of employment.

There is no longer a lower rate for minors. By state law, there is no tip-credit allowance.

In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

Applicability July 24, 2008

• Training wage -- may be paid to new employees under the age of 20 during their first 90 days of employment $4.90
• Small employers -- annual sales volume of less than $500,000 and not engaged in interstate commerce $5.25
• Federally covered employers -- businesses with annual dollar volume of business of $500,000 or engaged in interstate commerce $6.55