Thursday, June 26, 2008

Idaho Minimum Wage to Increase on July 24, 2008

The state of Idaho will increase its minimum wage from $5.85 to $6.55 per hour on July 24, 2008, in coordination with the federal minimum wage increase. Section 44-1502 of the Idaho Code guarantees that the majority of Idaho employees are paid the state minimum wage.

Pursuant to the bill passed in 2006, the federal minimum wage will increase in a three step process. The Idaho minimum wage is tied to the federal minimum wage. So when the federal minimum wage increases on July 24, 2008 (the second of the three increase steps), the Idaho minimum wage will increase accordingly.

The minimum wage for tipped employees in Idaho will remain unchanged at $3.35 per hour. Idaho state law also provides a special wage for workers under the age of 20: companies may pay such workers an “opportunity wage” of $4.25 per hour during the first 90 days of employment.

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