Federal Minimum Wage Set to Jump to $7.25

Jason Hicks |

WASHINGTON — The last of three scheduled increases in the federal minimum wage will hit on July 24, when all U.S. businesses will be required to raise eligible employee wages to $7.25 and display the proper labor law notice at each business location. To be compliant, all businesses with at least one employee must display the new regulation, regardless of whether employees are hourly, salaried or compensated at more than the minimum wage.The Department of Labor (DOL) enforces the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards. The department’s Wage and Hour Division, a program of the Employment Standards Administration, enforces these standards.Workers who are covered by the FLSA are entitled to a minimum wage of not less than $7.25 per hour, and overtime pay at a rate of not less than 1½ times their regular rate of pay is required after 40 hours of work in a workweek. Many states also have minimum-wage laws; in cases where an employee is subject to both state and federal minimum-wage laws, the employee is entitled to the higher of the two wages.For more information about the federal minimum wage, click here. Compliance assistance materials are available here. To download a poster displaying the new regulation, click here.

About the author

Jason Hicks

American Drycleaner

Jason Hicks was assistant editor for American Trade Magazines, which publishes American Coin-Op, American Drycleaner and American Laundry News, for more than nine years, and web editor for three years.


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