The federal minimum wage is set to increase from $5.85 per hour to $6.55 per hour for work performed after July 23, 2008. Under current law, an additional increase to $7.25 per hour is scheduled for work performed after July 23, 2009. The Fair Labor Standards Act sets the minimum wage for nonexempt, covered employees. Employees in states with laws that set higher minimum wages are entitled to higher minimum wages. Different minimum wages may be paid to certain classes of employees in some situations, including tipped employees, disabled workers, full-time students, student-learners and youth under age 20 in their first 90 consecutive calendar days of employment. If state and federal rules differ, employers are generally required to follow the rules that are more beneficial to employees. Contact Vision Payroll if you have any questions on minimum wage law changes.