Minimum Wage Increase effective July 24, 2008

Just a reminder that, effective July 24, 2008, the federal minimum wage for covered non-exempt employees will rise from $5.85 to $6.55 per hour. The Fair Minimum Wage Act of 2007, which amended the Fair Labor Standards Act (FLSA), provides for phased-in increases ultimately reaching $7.25 per hour effective July 24, 2009. Prior to the law’s effective date, Maryland’s minimum wage of $6.15 governs. Thereafter, the federal law’s $6.55 per hour will govern unless or until Maryland’s minimum wage law is amended to exceed the federal minimum. Covered employers must comply with both. The youth minimum wage and tip credit provisions of the FLSA remain the same.