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July 09, 2009
Will New Minimum Wage Affect You?

The federal minimum wage will increase from $6.55 per hour to $7.25 per hour on July 24, 2009—the third of three scheduled increases to the federal minimum wage.

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A vast majority of states have their own minimum wage law. While several states have minimum wages above the new federal rate of $7.25, many don't, including some states that have scheduled increases that are identical to the federal increase.

All told, employers in most states will be required to pay a higher minimum wage beginning July 24, whether the result of federal or state law.

Employers in the following 30 states will generally see the minimum wage they are required to pay increase to $7.25 per hour on July 24, 2009:

  • 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 is automatically $1.00 per hour higher than the federal rate if that amount is greater than $7.00. Therefore, the minimum wage minimum wage in the district will increase to $8.25 per hour beginning July 24, 2009.

In Nevada, the state minimum wage rate varies for employers, depending on whether the employer offers its employees health benefits, and is indexed to inflation. The increase in the federal rate on July 24 will require Nevada 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.

This year's increase in the federal minimum wage will generally have no effect on employers in the following 19 states because they currently have minimum wages at or above $7.25 per hour:

  • Arizona (the state minimum wage is $7.25 and is indexed to inflation)
  • California (the state minimum wage is $8.00)
  • Colorado (the minimum wage is $7.28 and is indexed to inflation)
  • Connecticut (the state minimum wage is $8.00 ($8.25 on 1/1/10))
  • Hawaii (the state minimum wage is $7.25)
  • Illinois (the state minimum wage is $8.00 ($8.25 effective 7/1/10))
  • Iowa (the state minimum wag is $7.25)
  • Kentucky (the state minimum wage increased to $7.25 on July 1)
  • Maine (the state minimum wage is $7.25 ($7.50 on 10/1/09))
  • Massachusetts (the state minimum wage is $8.00)
  • Michigan (the state minimum wage is $7.40)
  • New Hampshire (the state minimum wage is $7.25)
  • New Mexico (the state minimum wage is $7.50)
  • Ohio (the state minimum wage is $7.30 and is indexed to inflation)
  • Oregon (the state minimum wage is $8.40 and is indexed to inflation)
  • Rhode Island (the state minimum wage is $7.40)
  • Vermont (the state minimum wage is $8.06 and is indexed to inflation)
  • Washington (the state minimum wage is $8.55 and is indexed to inflation)
  • West Virginia (the state minimum wage is $7.25)
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