Brace yourselves for the second step of a three-part increase in the federal minimum wage.

The Fair Minimum Wage Act of 2007 first raised the federal minimum wage to $5.85 per hour on July 24, 2007, for those covered by the Fair Labor Standards Act. That was step one.

Now we're on the threshold of step two. On July 24, 2008, the federal minimum increases to $6.55 per hour.

Next year, watch for step three, which will take us up to $7.25 per hour (on July 24, 2009).

If you haven't already updated your federal minimum wage poster, you can download a copy for free from the Department of Labor.
It covers all three steps.

Of course, depending on which state you are in, this increase might be meaningless. In recent years, many states also have minimum wage laws and have raised their wages past the federal requirements. In Vermont, for example employers must pay $7.68 per hour. On the other side of the country in Washington state, the minimum wage is $8.07, with adjustments for inflation. In California generally, the minimum wage rose to $8.00 per hour on January 1, 2008 (although some cities have even higher rates). You can view the minimum wage laws for your state by clicking here. 

In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.

Depending on the outcome of the presidential election, there could be even more changes in store for U. S. minimum wage laws ... so stay tuned. We'll keep you up to date on all the changes.