President Bush signed legislation on May 25, 2007 implementing the Fair Minimum Wage Act of 2007. This increases the federal minimum wage to $7.25 per hour in three steps over a period of 26 months. The changes will take place according to the following schedule
July 24, 2007 – $5.85
July 24, 2008 – $6.55
July 24, 2009 – $7.25
The minimum wage doesn’t just apply to hourly workers. The law doesn’t require you to pay an employee on an hourly basis just because the law is stated that way, it merely requires you to pay a covered employee for a workweek an amount that is at least equal to the minimum wage, multiplied by the hours worked. For example, an employee who works 40 hours a week must be paid a weekly salary of at least $234 effective July 24, 2007.