Minimum Wage Increase: Effective July 24th, 2009.

What is the rate of the Federal Minimum Wage increase and what is the current wage?

Since July 24, 2008, the Federal Minimum Wage was $6.55 per hour. As of July 24, 2009, the Federal Minimum Wage will increase to $7.25 per hour.


How is it changing?

Minimum Wage does not automatically increase every year. Congress must pass a bill which the President signs into law in order for the Minimum Wage to go up. The last Bill was for a 3-step increase:
$5.85 in summer of 2007, $6.85 in summer of 2008, $7.25 in summer of 2009.
This was the first increase in the Federal Minimum Wage in a decade. States first began to pass Minimum Wage laws in the early 1900s mainly to protect low-wage, female employees. The Fair Labor Standards Act of 1938 was then created. It’s amendment has now started the process of Minimum Wage increases which continues to protect employees.

Why is minimum wage increasing?

The intention and goal behind the Minimum Wage increase is to assist workers living at or below the poverty line. Minimum Wage will rise due to CPI, Federal Wage increase or cost-of-living accommodation.

What is the poverty line?

In the United States, the 2009 Federal Poverty Guidelines have been released to the Federal Register. These guidelines help determine eligibility for many programs that assist lower-income families.

For one person, the poverty line is $10,830. Two people in a family: $14,570. Three people in family: $18, 310 and for a family of eight, the poverty line is $37,010.

What about New Jersey Minimum Wage?

State Minimum Wages may vary. However, employers are required to pay whichever rate is higher. New Jersey’s Minimum Wage is currently $7.15. It will increase to match that of the Federal Minimum Wage rate of $7.25 on July 24, 2009.