The first phase of the Fair Minimum Wage Act of 2007, which goes into effect tomorrow, July 24, 2007, increases the federal minimum wage from $5.15 to $5.85 an hour. This change is the first increase to the federal minimum wage in ten years and marks the first of three increases that will raise the federal minimum wage to $7.25 an hour over two years. These increases may also affect state and local minimum wage laws.

The Department of Labor has issued a revised Federal Minimum Wage Poster reflecting today’s minimum wage increase, as well as the increases that will be effective in 2008 and 2009. Employers must post a notice of the Fair Labor Standard Act’s minimum wage provisions in a conspicuous place in all of their establishments so that applicants and employees may see the notice.

Due to the increase, employers should replace workplace posters that address the federal minimum wage. Employers have additional posting obligations under federal, state, and local laws. Employers might consider using this opportunity to review their workplace posters to ensure that they have properly posted current versions of all required notices.