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07/02/08 - Feds Increase Minimum Wage Again on July 24th: But Remember the State Minimums!
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Organizations should be aware that the federal government will increase the minimum hourly wage to $6.55 per hour effective July 24, 2008. This hourly wage will then increase again in July 2009. Despite this increase, it’s important to remember that many states have a higher minimum wage and that when an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage. For example, the minimum hourly wage in Oregon is $7.95; in Washington, it is $8.07; and, in California, the minimum hourly wage is $8.00. This means that an Oregon employer should typically already be paying more than the new federal minimum wage. There is one impact that employers in states with higher minimum wages should consider, however, and that is that employees often gauge their pay by how much over minimum wage they are. So even in states with higher minimum wage levels, be prepared for employees to think that they should get additional money since the federal rate went up. Being prepared for any questions or conversations with employees about this change and why it doesn’t affect your organization’s pay is a good idea.
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