Federal Minimum Wage to Increase in July

The first increase in the federal minimum wage in 10 years will take effect on July 24. The current minimum wage of $5.15 per hour will increase to $5.85 per hour. The Fair Minimum Wage Act of 2007 includes incremental wage increases that begin this summer and continue over the next two years. In 2008, the wage will jump to $6.55 per hour, with a final increase to $7.25 per hour in 2009.

Nearly 30 states have minimum wage rates higher than the current federal standard. In states where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher of the two rates.