Minimum Wage Update
The current minimum wage is set at $5.85 per hour and increases to $6.55 per hour on July 24, 2008.
There is no change in the federal tipped minimum wage rate, which is set at $2.13 per hour. However, due to the increase in the federal minimum wage, an employer’s tip credit will increase from $3.72 to $4.42 ($6.55 - $2.13 = $4.42). The tip credit is the difference between the minimum wage and the tipped minimum wage.
Virginia: On July 24, 2008 Virginia will also be increasing their minimum wage rate to $6.55 per hour.
District of Columbia: On July 24, 2008, Washington, D.C. will be increasing the minimum wage rate to $7.55 per hour. Their tipped minimum wage will also increase to $3.40 per hour.
Contributed by Alexis J. Alber.
Tags: FLSA/Overtime, Minimum Wage