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Minimum Wage to Increase on July 24

The minimum wage established by the Fair Labor Standards Act (FLSA) will increase from $6.55 per hour to $7.25 per hour on July 24, 2009. The increase is the final phase of a three-part phase-in mandated by legislation enacted in 2007.  The first phase took effect on July 24, 2007, increasing the hourly rate from $5.15 to $5.85.  The second phase took effect on July 24, 2008, increasing the hourly rate from $5.85 to the current rate of $6.55. Many states have established a minimum wage rate higher than the federal rate.  Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two wage rates.  For information on state minimum wage laws, click here. Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post a notice explaining the Act in a conspicuous place at all work sites.  Employers can download a poster satisfying the requirement from the U.S. Department of Labor's Web site.  Employers can also purchase printed and laminated Consolidated Federal Employment Laws posters from AGC, with a discount for members.  The poster satisfies the posting requirements of 10 different federal labor and employment laws, including the FLSA.  For more information on the FLSA, visit the Labor & HR Topical Resources page of the AGC Web site.  Select the category "Compensation" and the subcategory "Fair Labor Standards Act." For more information, contact Tamika C. Carter at (703) 837-5382 or cartert@agc.org.