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12-Jul-07 8:00 AM CST

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New Minimum Wage and Overtime Laws Go Into Effect

Effective July 25, 2007, employers must post a new minimum wage poster in their workplaces, and begin compensating employees at the higher rate.

President Bush signed a new law on May 25 increasing the federal minimum wage. The minimum wage increase will take effect incrementally over the next three years. Effective July 24, 2007, the minimum wages becomes $5.85 per hour. On July 24, 2008, the rate increases again to $6.55 per hour. On July 24, 2009, it increases further to $7.25 per hour.

Because of the new law, every employer subject to the Fair Labor Standard Act's minimum wage provisions must post, and keep posted, a revised federal minimum wage poster. The poster must be displayed in a conspicuous place in all work establishments so employees can read it readily.

The Fair Labor Standards Act establishes minimum wage, overtime pay, recordkeeping, and child labor standards for full-time and part-time workers for privately owned businesses and federal, state and local governments.

For a copy of the new federal minimum wage poster, please go to the Department of Labor website: http://www.dol.gov/esa/regs/compliance/posters/flsa.htm

For more information on how to comply with the minimum wage laws at your business, please contact Sheehy, Serpe & Ware, P.C. attorney Steven O. Grubbs at 713-951-1014 for more information.

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