Under the recently enacted "Fair Minimum Wage Act of 2007," the federal minimum wage for covered non-exempt employees will increase effective July 24, 2007 from the current $5.15 per hour to $5.85 per hour.  The minimum wage will then increase to $6.55 per hour effective July 24, 2008 and to $7.25 per hour effective July 24, 2009.  The provisions of the Fair Labor Standards Act (FLSA) regarding tip credit have not changed.  Customarily tipped employees must be paid $2.13 in direct wages so long as the direct wage plus tips received equals the federal minimum wage amount.  A "Youth Employee" (under 20 years of age) may still be paid $4.25 per hour during the employee's first 90 consecutive calendar days of employment.
 
Employers of employees subject to the FLSA's minimum wage provisions must post in a conspicuous place a notice which explains the Act.  Attached is a Department of Labor approved poster to satisfy this requirement which has been updated to include the increase in minimum wage which goes into effect on July 24, 2007.  Employers should replace their Minimum Wage poster with this poster to reflect this change in the law.