New Min Wage Law

NYGiants

I've seen a lot of discussions here about whether the min wage law is going to pass, etc. Thought you all would be interested in this:

President Bush signed legislation on May 25 that increases the federal minimum wage to $7.25 per hour in three steps over a period of 26 months. The changes will affect employers in different ways, depending on the state in which their employees work.

The federal minimum wage will increase from $5.15 per hour to:

• $5.85 per hour 60 days after enactment (which will be July 24, 2007),
  
• $6.55 per hour one year after the first increase (which will be July 24, 2008), and
  
• $7.25 per hour two years after the first increase (which will be July 24, 2009)

 

KLeede

I've read in other places that the change doesn't affect tipped employees -- that seems strange, but I guess it's right.  Is the way everyone else has heard it?

HRgsf

The cash wage you have to pay is still $2.13 but the tip credit will go up because it's the difference between 2.13 and whatever the minimum wage is.