Why make the change on a Tuesday at the end of the month? Congress certainly was not thinking of the payroll industry when choosing this date. A bit of a PITA for those who are preparing weekly or bi-weekly payroll for employees earning minimum wage. But then making the increase effective on a Monday or the first day of the month would have been too simple, or sensible, for Congress.
This is the first of three annual increases in the federal minimum wage. It goes to $6.55 on July 23, 2008 and $7.25 on July 24, 2009.
FYI, 30 states already have a minimum wage that is higher then the new federal rate. The minimum wage for NY and NJ is $7.15.
The 70 cent increase is a lot more than the 7½ cents that employees of the Sleep-Tite Pajama Factory fought for in PAJAMA GAME. However that was in the mid-1950s. When you take into consideration 50+ years of inflation it appears that the Sleep-Tite workers got the better deal.
For information on who is covered by federal minimum wage laws go to the DOL Minimum Wage and Overtime Pay Compliance page.