|
As many as 36,000 Indiana workers on lower
incomes will see increases in pay over the next two years,
as a result of legislation on both the state and federal
levels. The new minimum wage laws that take
effect in July will increase the minimum wage in three
steps throughout the next two years.
The first increase goes into effect 60 days after
President Bush’s signature – on July 24, 2007. The bill
increases the federal minimum wage in three stages:
|
Wage |
Effective Date |
|
$5.85 |
July 24, 2007 |
|
$6.55 |
July 24, 2008 |
|
$7.25 |
July 24, 2009 |
The federal minimum wage affects most of the employers in
Indiana, including workers for those companies that are
engaged in interstate commerce or generate an excess of
$500,000 in sales each year. The state minimum wage covers
workers in smaller businesses that are do not engage in
interstate commerce or have less than $500,000 in sales
per year. That designation would include employees who
work for laundromats, car washes and mom and pop
restaurants.
The new state law provides that the state minimum wage
shall not be less than the federal minimum wage. Although
the new state law has an effective date of June 30, 2007,
the state minimum wage will increase on the same dates
that the federal minimum wage increases.
In addition to complying with the wage
increases, employers with at least one employee are also
required to communicate the above changes to their
employees by displaying at least one updated labor law
poster in each of their locations. |
