The next phased increase for the federal minimum wage goes into effect July 24, when the rate rises from $5.85 to $6.55. (With another hike of $1 scheduled on July 24, 2009.)  Aside from making sure your system’s up to date there are a few other things you should take note of — and communicate to employees as needed:

• Tip credit provisions of the FLSA are the same.
• The youth minimum wage is unchanged.
• Minimum wage rates in American Samoa and the Commonwealth of Northern Mariana Islands are also being raised with phased increases. They’ll be brought level with the federal minimum wage over the next few years.

All these changes are part of the Fair Minimum Wage Act of 2007. For more details, visit the DOL’s site.

The good news for Payroll: With the rates going up, this is one change employees aren’t likely to grumble about.

Tags: DOL, FLSA, Minimum wage