Federal and New York State Minimum Wage Increases to $7.25 Per Hour on July 24, 2009; Minimum Wage for Tipped Restaurant Servers and Other Servers Increases to $4.65

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Effective, July 24, 2009, the federal minimum wage increases from the current rate of $6.55 per hour to $7.25 per hour in accordance with the Fair Labor Standards Act (the “FLSA”). This is the third increase to take effect since the FLSA was amended in 2007. In 2007, the federal minimum wage rose from $5.15 to $5.85 and, in 2008, the rate increased again from $5.85 to $6.55.

The New York State minimum wage also increases by 10 cents to $7.25 on July 24, 2009. Under the New York State Minimum Wage Act, the minimum wage in New York has been at $7.15 per hour since January 1, 2007. The New York State Minimum Wage Act, however, specifically adopts the federal minimum wage in the event that the federal minimum wage rises above the New York State minimum wage. Accordingly, beginning on July 24, 2009, all New York employers, whether covered under the FLSA or not, must begin paying their employees a minimum wage of $7.25 per hour.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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