President Signs New Federal Minimum Wage Increase into Law

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On Friday, May 25, 2007, President Bush signed the first federal minimum wage increase in 10 years into law.

Congress raced to approve the final Iraq war funding bill (which included the minimum wage legislation) and sent it to the President before the Memorial Day recess. The minimum wage package also included $4.84 billion in tax breaks for small businesses.

The wage increase is set to take place in three stages escalating from $5.15 to $7.25 over the next two years. The first increase to $5.85 will go into effect on July 24, 2007 (60 days after the bill was signed into law). The next increase to $6.55 will occur one year later (July 24, 2008) with the final increase to $7.25 two years later (July 24, 2009).

According to the Wage and Hour Division website, "every employer of employees subject to the Fair Labor Standard Act's minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments so as to permit employees to readily read it."

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