On July 24, 2009, the federal minimum wage will increase to $7.25. Employees subject to both federal and state minimum wage laws must be paid the higher of the two.
Therefore, employees in states such as New York and New Jersey, where the minimum wage is less than $7.25 per hour, must be paid at least the federal minimum wage beginning July 24th to be in compliance.
Employees in states where the minimum wage is already higher than $7.25 (such as Connecticut) generally will not be affected. One exception to this rule is the District of Columbia, where the minimum wage is required by law to be $1 more than the federal minimum wage.