New Federal Minimum-Wage Law Explained

On May 25, President George W. Bush signed the Fair Minimum Wage Act of 2007 into law, raising the minimum wage of $5.15 per hour to $7.25 per hour by July 2009. The increase will occur in three phases:

1. Beginning July 23, 2007, the minimum wage will be $5.85 per hour


2. Beginning July 23, 2008, the minimum wage will be $6.55 per hour


3. Beginning July 23, 2009, the minimum wage will be $7.25 per hour

Many states have minimum-wage laws that differ from the federal law, but employees must be paid the higher of the differing wages. Read today's Tools & Tips on NFIB.com for more information on the new federal minimum-wage law, including exceptions.