Federal minimum wage jumps to $5.85 per hour in July

The federal minimum wage – currently $5.15 per hour for covered non-exempt employees – will increase to $5.85 on July 24. President George W. Bush signed the legislation on May 25. Workers under 20 years of age and those receiving tips are exceptions.

The state minimum wage in Hawai'i, however, is currently $7.75. Employees in Hawaii who earn guaranteed monthly compensation of $2,000 or more are exempt from the state minimum wage and overtime law, which also excludes from coverage employment subject to the Federal Fair Labor Standards Act unless the state wage rate is higher than the federal.

The federal minimum wage increases on July 24, 2008, to $6.55 and on July 24, 2009, to $7.25. For more information about minimum wages, click here to go to the Department of Labor web site.