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Ready for the New Minimum Wage?

WASHINGTON, D.C. — President George Bush signed the federal minimum wage proposal into law on May 25. The federal minimum wage will eventually increase to $7.25. If you’re unsure about your responsibilities as an employer, you can receive some help.
Responding to a surge of inquiries spawned by the impending federal minimum wage increase, GovDocs Inc. released a free Minimum Wage Compliance Guide for businesses. The guide, available for download at www.hrdocs.com, clarifies common — and costly — labor-law misconceptions. GovDocs works with more than 500 state and federal sources to provide accurate and timely compliance materials to U.S. employers.
The new proposal boosts the minimum wage from $5.15 to $7.25 in three stages over two years, with the first increase to $5.85 effective on July 24, 2007. Wages increase to $6.55 on July 24, 2008, and to $7.25 on July 24, 2009. It is the first federal minimum wage increase in more than a decade.
Recent concerns voiced by employers include what to do when a state’s minimum wage is higher than the federal minimum wage, and if businesses with salaried employees who are paid above minimum levels will be impacted by the new legislation. Another frequent business question is when and where to obtain the latest mandatory postings.
The law mandates that all businesses with one or more employees display at least one copy of the current state and federal labor-law postings in each location, even if the entire workforce earns above the minimum wage. Non-compliant businesses risk significant fines and penalties.
 

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