Human Resource Blog

Minimum Wage Update: Poster Services

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I know that the federal minimum wage changed recently to $5.85 per hour. How can I keep up with all the changes in federal and state posting requirements?

Even if every employee on your staff earns well over the current federal minimum wage of $5.85 per hour, you still need to update your federal minimum wage poster. It’s the law.

Every employer must prominently display a federal minimum wage poster in the workplace. Posters need to be in an area where they will be seen by every employee. Popular locations include near the time clock, in the employee break room or in another area frequented by employees.

In many states, this change also affected the state minimum wage. In those states, employers will need to update the state minimum wage posters, as well.

The federal minimum wage will increase again in July 2008, when it will go from the current rate of $5.85 to $6.55 per hour. In July 2009, the federal wage will increase an additional 70 cents to $7.25 per hour.

In a number of states, including Texas and Utah, each federal increase will be mirrored by a state increase. Other states, including

Illinois, have already scheduled state minimum wage increases for later in the year.

One way for busy employers to keep up with all these changes is to subscribe to a labor law poster service. For one low annual fee, the poster service will send updated posters automatically each time the posting requirements in your state change. I can tell you from personal experience that it’s a huge relief not to worry about poster compliance anymore.

At $5.15, the old minimum wage had a lower purchasing power than in 1968, when the rate was $1.60 per hour.  Proponents of the increase point out that the $1.60 minimum wage was equivalent in purchasing power to a salary of $9.12 per hour in 2005.

In the 10 years since the last increase in the federal minimum wage, the average U.S. Congressman (or Congresswoman) has voted themselves raises totaling $31,600 per year. The current increase amounts to $1,456 per year for a full-time minimum wage worker.