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Minimum Wage Increase Signed by President Bush

On May 25, 2007, President Bush signed an emergency spending bill funding the war in Iraq. That bill also amended the Fair Labor Standards Act to provide for a three-stage increase to the federal minimum wage over the next couple of years.

The minimum wage will increase to:

  • $5.85 an hour on July 24, 2007
  • $6.55 an hour on July 24, 2008, and
  • $7.25 an hour on July 24, 2009.

This law will change not only the federal minimum wage, but also the minimum wage rates of states that base their requirements on the federal law. For example, some states -- such as Texas and Virginia -- simply use the federal minimum wage as the state standard, while others have a state standard that is a set amount more than the federal minimum.


Effective date: Jul. 24, 2007

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