FEDERAL MINIMUM WAGE INCREASE EFFECTIVE JULY 24, 2008

On July 24, 2008, the federal minimum wage will increase from $5.85 per hour to $6.55 per hour as part of a three-phase increase adopted by Congress in 2007. As a result, many state minimum wage rates will adjust accordingly. The minimum wage in Maryland will increase from $6.15 per hour to $6.55 per hour. Virginia follows federal law and, as such, its minimum wage will increase to $6.55 per hour. Pennsylvania’s current minimum wage of $7.15 per hour will not increase until 2009. The District of Columbia automatically increases its wage to one dollar higher than the federal rate if the District’s current minimum wage is lower. As a result, the minimum wage in the District of Columbia will increase to $7.55 per hour.

On the effective date of the wage increase, twenty-three states and the District of Columbia will have a higher minimum wage than the federal threshold. The next, and final, increase will take place on July 24, 2009, when the minimum wage will increase to $7.25 per hour.

Shawe Rosenthal, LLP provides this publication for informational purposes, and it should not be construed or relied upon as legal advice. You should contact your Shawe Rosenthal, LLP lawyer to discuss any questions that you may have concerning your own situation.