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Labor Standards -- How federal minimum-wage increase affects Minnesota businesses



MoneyFederal minimum-wage increase effective July 24, 2009

The federal minimum-wage to be paid by covered employers is $7.25 an hour effective July 24, 2009. These employers include:

  • businesses that produce or handle goods for interstate commerce;

  • businesses with annual dollar volume of business of $500,000 or more; and

  • certain other businesses, including hospitals and nursing homes, private and public schools, and federal, state and local government agencies.

There are both state-minimum-wage laws and federal-minimum-wage laws. In cases where an employee is subject to both the state and federal minimum-wage laws, the employee is entitled to the higher of the two minimum wages.

Applicability July 24, 2009
Wage
Training wage
may be paid to new employees under the age of 20 during their first 90 days of employment
$4.90
Small employers
annual sales volume of less than $500,000 and not engaged in interstate commerce
$5.25
Federally covered employers
businesses with annual dollar volume of business of $500,000 or engaged in interstate commerce
$7.25
Visit www.dol.gov or call (612) 370-3341 for information about the federal minimum-wage law.
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