SLF LABOR AND EMPLOYMENT ALERT      August 2007

New Federal Minimum Wage Rate

As of July 24, 2007, the new federal minimum wage is $5.85 per hour, replacing the previous rate of $5.15 per hour which had been in place since September 1, 1997.  Employers should be aware that the federal minimum wage is scheduled to increase in the coming years.  On July 24, 2008, the rate will increase to $6.55, and on July 24, 2009, the rate will increase to $7.25.  The federal minimum wage rate does not automatically increase each year; instead, Congress must pass a bill increasing the rate which the President must subsequently sign into law.

The Fair Labor Standards Act provides standards for basic federal minimum wage rates.  However, many states (such as Florida) also have minimum wage rate laws.  If an employee is covered under both the federal and state minimum wage laws, the employee is entitled to the higher of the two wage rates.  For example, as of January 1, 2007, the Florida minimum wage rate is $6.67 per hour.  If an employee is covered under both federal and state minimum wage laws in Florida, the employer would be required to pay the employee $6.67 per hour.  For a complete list of all 50 states’ minimum wage laws, please visit http://www.dol.gov/esa/minwage/america.htm

Eleventh Circuit Finds States Immune from Certain FMLA Claims

The Eleventh Circuit has found that States are immune from the self-care provision of the Family and Medical Leave Act. In Batchelor v. South Florida Water Management District, the court held that Congress did not have sufficient authority to abrogate the 11th Amendment immunity enjoyed by States with respect to claims by State employees who sue under the FMLA’s self-care provision. The decision may be found at: http://www.ca11.uscourts.gov/unpub/ops/200614615.pdf

Bush Administration Rolls Out New Rules Cracking Down on Illegal Workers

The Bush Administration has unveiled a package of regulations that would, among other things, increase penalties against employers who hire illegal workers. The rules would also require greater employer involvement with respect to the verification of documents presented by employees.

The regulations may be found at:
http://www.dhs.gov/xlibrary/assets/ice_safeharbor_no-match_finalrule_2007-08.pdf
The final regulations are due to become effective in 30 days from issuance.

 

You may view past issues of the SLF Labor and Employment Alert on the Firm’s website: www.sniffenlaw.com. After entering the Firm’s website, click on the “Publications” page.

 

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