Effective July 24, 2009, the Federal Minimum Wage will increase from $6.55 to $7.25 per hour, representing more than a 10 percent increase. All employers, regardless of size, are required to post the most recent Minimum Wage poster (that went into effect on January 16, 2009) even if your state’s minimum wage differs.

If  you employ staff in California, the new law will not affect your state-based employees, as the California minimum wage is $8.00. However, be aware that employees residing out of state are subject to their states’, or federal, guidelines.

The Federal Minimum Wage is governed by the Fair Labor Standards Act of 1938. The FLSA establishes minimum wage, overtime rules, record-keeping requirements, and youth employment standards affecting employees. Remaining compliant with the myriad of FLSA requirements is daunting, as employers often confuse the federal guidelines with their state rules.

If you are concerned about compliance, contact an HR Consulting firm who can guide through the FLSA maze.