On July 24, 2009, the final stage of the three-phase minimum wage increase contained in the Fair Minimum Wage Act of 2007 goes into effect. Employees covered by the Fair Labor Standards Act must now be paid no less than $7.25 per hour. A revised minimum wage poster has been prepared by the Department of Labor’s Wage and Hour Division.

Employers should take this opportunity to ensure that they have the required notices properly posted in their facility.  In addition, employers should review their payroll systems to ensure that appropriate rates are being paid, particularly in the case of employees being compensated on piece rate, shift rate, or daily rate, or employees for whom the employer takes a tip credit.