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Idaho Minimum Wage Increase 2009


Posted by Tamara

The Idaho minimum wage law applies not only to those covered by the federal Fair Labor Standards Act (FLSA), but to smaller employers in the state also.

Otherwise, the Idaho law mirrors the rate and schedule of the federal minimum wage law. For example, on July 24, 2009, the Idaho minimum wage will go up 70 cents an hour, from $6.55 to $7.25. On the same date, the federal minimum wage law will also go up 70 cents an hour, to $7.25.

While that is good news for Idaho workers receiving minimum wage, there is also good news for Idaho employers during these difficult economic times. No federal minimum wage hike is planned for 2010.

More details about the rules of the FLSA, as enforced by the U.S. Department of Labor’s Wage and Hour Division, can be found at www.dol.gov.

The fact that Idaho minimum wage rates mirror the federal rates is not a coincidence. Idaho law requires that the state minimum track the national rate as established by the FLSA.  For example, in 2007, both the Idaho and federal rates climbed from $5.15 an hour to $5.85 an hour. In 2008, tracking the federal rate, Idaho’s minimum wage went from $5.85 to $6.55.

Almost all employers nationally are covered by the federal minimum wage. There are exceptions, however. If an employer does not deal in interstate commerce, or does not show revenue of at least $500,000 a year, he or she is exempt from the FLSA’s regulations.

There are also certain jobs which are not covered. Tipped employees may be paid less than the hourly minimum according to both Idaho and federal laws. In some states, tipped workers may, by federal law, pay its tipped workers only $2.13 an hour. However, if a worker does not earn $5.12 in tips on average during a given pay period, the employer must cover the difference. In addition, tipped employees working more than 40 hours in a week must receive a minimum of $10.88 an hour in combined tips and wages.

Covered by the FLSA are schools, health care facilities, and hospitals.

 

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