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July 24, 2009
New Minimum Wage Takes Effect

The federal minimum wage rose from $6.55 per hour to $7.25 per hour today, representing the last of three scheduled increases that started under the Bush administration.

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A vast majority of states have set their own minimum wages. Some states already had minimum wages at or above the new federal rate, but most states were affected by the increase in the federal rate. Employers in 30 states saw the minimum wage they are required to pay increase today. Those states are:

  • 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 (state law is not tied to federal law, so employers covered by state, but not federal law, will not be required to pay federal minimum wage.)
  • Wyoming (state law is not tied to federal law, so employers covered by state, but not federal law, will not be required to pay federal minimum wage.)

In the District of Columbia , the minimum wage increased to $8.25 per hour today, because the district's minimum wage automatically increases to $1 above the federal rate.

In Nevada , the increase in the federal rate requires employers that provide health insurance to pay their employees $7.25 per hour. Employers that don't offer qualified health insurance must pay $7.55 per hour.

Nineteen states already had minimum wages at or above $7.25 per hour, so they were unaffected by the increase to the federal rate today. Those states are:

  • Arizona
  • California
  • Colorado
  • Connecticut
  • Hawaii
  • Illinois
  • Iowa
  • Kentucky
  • Maine
  • Massachusetts
  • Michigan
  • New Hampshire
  • New Mexico
  • Ohio
  • Oregon
  • Rhode Island
  • Vermont
  • Washington
  • West Virginia

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