Increase in Federal Minimum Wage — July 24, 2009

May 28, 2009

Legislation passed by the U. S. Congress in 2007 mandated increases in the federal minimum wage in three incremental steps. The current minimum wage is $6.55 per hour. The final authorized increase in the federal minimum wage will become effective July 24, 2009, taking the federal minimum wage to $7.25 per hour.

This increase in the federal minimum wage will obviously affect those businesses that compensate workers at or near the previous minimum wage. In addition, this change may impact the internal equity of pay structures of some organizations. Prior to making any across the board adjustments in the current pay scales, contact SESCO to discuss the potential impact and realities of compensation practices.

SESCO has available two versions of the required federal posters the 5-in-1 poster for employers with less than fifty (50) employees and the 6-in-1 poster with the required posters for employers with fifty (50) or more employees. These posters include the updated minimum wage rate. Both posters are $14.95; the posters are laminated and measure 18 inches by 24 inches. Call SESCO to order your posters, or the posters may be ordered from our website.

Finally, this change in the federal minimum wage needs to be evaluated in light of the minimum wage established by some states. Some states tie their minimum wage to the federal standard, while others may have a minimum wage that is higher than the federal hourly rate. Please contact SESCO should you need clarification on this issue. Required individual state posters are also available from SESCO ($14.95 per set).