On Friday July 24, 2009 the federal minimum wage increased to $7.25. This increase affects a number of states and all employees who are covered by the Fair Labor Standards Act (FSLA). The increase is the third and final in a succession of increases, over a three year period, mandated by a bill that was passed in 2007.
The most recent increase will improve the wages, for employees, in thirty states (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) across the country. These states were either below the federal minimum wage or did not have a minimum wage. Under the Fair Labor Standards Act all employers, with very few exceptions, are required to the federal minimum wage to their non-exempt employees.
To be in compliance with the FLSA all employers subject to the requirements, must post a notice explaining the act. This notice must be posted in a prominent workplace so that employees can easily read the provisions. Posters and other compliance assistance materials concerning the minimum wage increase are available free of charge from the Labor Department's Wage and Hour Division.
In today’s economic climate full-time and part-time employees, whom the change affects, will welcome a boost in their paycheck. Employers may be nervous about the change if they are still manually calculating payroll. A simple solution, for small business owners in this situation, would be to invest in employee payroll software. A small upfront investment saves time, money and aggravation in the long run.
Try a free demo version of this small business payroll software: software download
