As part of legislation signed into law by President Bush on May 25, the federal minimum wage will increase to $5.85 per hour effective July 24. One year later the minimum wage will again increase to $6.55 per hour and two years later will increase to $7.25 per hour. The minimum wage in Illinois was increased to $7.50 per hour as of July 1, 2007.

In our February 13, 2006 update, we described state increases in the minimum wage above the federal minimum. So it might seem the federal minimum is not very relevant, but many states still use the federal minimum wage. Finally, employers may need to update their posters that are required to notify employees of their rights under the Fair Labor Standards Act or applicable state law.