The Federal Minimum Wage Increase

The United States House of Representatives and Senate recently gave their final approval to a 90 cent increase in the minimum wage. The Federal minimum wage, currently $4.25 per hour, will be increased 50 cents by October 1, 1996 and then increased an additional 40 cents by September 1, 1997. This would bring the minimum wage to $4.75 by next month, and $5.15 by next year. Additionally, the law establishes a permanent sub-minimum wage of $4.25 per hour for the first 90 days of employment for individuals under 20 years of age. Minimum pay for tipped employees remains at the current level of $2.13 per hour plus tips.

Nationwide, this change is expected to affect about 12 million workers who currently earn less than $5.15 per hour. The last time there was a change in the Federal minimum wage was April 1991. The current minimum wage change from the 1991 level ($4.25 per hour) to the 1997 level ($5.15 per hour) would represent a 3.3 percent per year increase.

For more information on how the minimum wage increase may affect occupations in Wyoming, please request a copy of the article "Minimum Wage Increase", which appeared in the January 1995 issue of Wyoming Labor Force TRENDS. Contact Valerie Davis at Research & Planning, P.O. Box 2760, Casper, WY 82602 or call (307) 473-3807.

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