Minimum Wage Increases – July 24, 2009

Federal Minimum Wage
The Fair Minimum Wage Act of 2007 established that the minimum wage of American workers would increase by $.70 per hour for three years, for a total increase of $2.10. The increases were to occur every July 24, for the following three years with the first increase taking place on July 24, 2007 when the minimum hourly rate went from $5.15 per hour to $5.85. On July 24, 2008 the minimum wage went from $5.85 to $6.55 an hour and the final increase will take place next month, on July 24, 2009 when the minimum wage will increase from $6.55 to $7.25.

Florida Minimum Wage
On November 2, 2004, Florida voters approved a constitutional amendment which created Florida’s minimum wage. The increase to Florida’s minimum wage on July 24, 2009 will be the third increase since January 1, 2008 as follows:

• $6.79 – January 1, 2008
• $7.21 – January 1, 2009
• $4.19 – January 1, 2009 – Tipped Employees
• $7.25 – July 24, 2009 Federal and Florida New Minimum Wage

When there is a difference between the federal and the Florida minimum wage, federal law requires that the employers pay the higher of the two. Therefore, in Florida employers must pay the Florida minimum wage rate.

Florida employers are required to pay their employees the minimum hourly rate for all hours worked and must pay overtime (time and one-half of the regular hourly rate) for all hours worked in excess of 40 per week. Employees who are not paid the minimum wage may bring a civil action against the employer or any person violating Florida’s minimum wage law. The state attorney general may also bring an enforcement action to enforce the minimum wage. See http://www.dol.gov/dol/compliance/comp-flsa.htm for compliance information.

Florida employers are required to post a minimum wage notice in a conspicuous and accessible place in each work location. Federal law also requires that employer post information regarding the federal minimum wage. The Florida minimum wage poster is available in English and Spanish at: http://www.floridajobs.org/workforce/posters.html.

The federal poster can be downloaded from the U.S. Department of Labor: http://www.dol.gov/esa/whd/regs/compliance/posters/flsa.htm.

The Schwarzberg & Associates Employment Law and Compliance Team has extensive experience in developing effective policies, procedures and proactive responsive measures to deal with a myriad of workplace issues. Please do not hesitate to contact one of our members; Steve Schwarzberg or Lisa Kohring at (561) 659-3300 to obtain more information about our firm and its various employment law compliance and defense services.