How the new minimum wage affects your practice

How the new minimum wage affects your practice

Minimum wage laws are changing. Here's what you need to know.
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Jul 23, 2009
By dvm360.com staff

On July 24, 2009, the federal minimum wage rate will increase from $6.55 per hour to $7.25 per hour. What does this mean for your practice? According to the Fair Labor Standards Act (FLSA) and relevant state law, employers must pay employees the higher of the federal or state minimum wage. Almost all veterinary practices are subject to this law.

Courtesy of Seminole, Fla., veterinary accounting firm Lacher McDonald, here’s a breakdown of the state-by-state changes resulting from the federal minimum wage rate change:

The following states will increase their minimum wage rate to $7.25 per hour by statute, effective July 24, 2009:

Georgia, Idaho, Indiana, Kentucky, Maryland, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, and Wisconsin

The following states will have a minimum wage rate below the federal minimum wage rate as of July 24, 2009. Where covered under the FLSA, employers must pay employees at least $7.25 per hour, effective July 24, 2009:

Alaska, Arkansas, Delaware, Florida, Kansas, Minnesota, Missouri, Montana, and Wyoming

The following states have no minimum wage rate. Where covered under the FLSA, employers must pay employees at least $7.25 per hour, effective July 24, 2009:

Alabama, Louisiana, Mississippi, South Carolina, and Tennessee

The following states will have a minimum wage rate greater than or equal to $7.25 per hour. Where covered under state law, employers must pay employees at least the higher minimum wage rate, effective July 24, 2009:

Arizona, California, Colorado, Connecticut, District of Columbia, Hawaii, Illinois, Iowa, Maine, Massachusetts, Michigan, New Hampshire, New Mexico, Ohio, Oregon, Rhode Island, Vermont, Washington, and West Virginia

The Nevada state minimum wage is $6.55 per hour for employees to whom qualifying health benefits have been made available by their employer. The minimum wage is $7.55 for all other employees. Employees covered under state law and the FLSA must be paid the higher of the two rates.

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