The current minimum wage is set at $5.85 per hour and increases to $6.55 per hour on July 24, 2008.

There is no change in the federal tipped minimum wage rate, which is set at $2.13 per hour.  However, due to the increase in the federal minimum wage, an employer’s tip credit will increase from $3.72 to $4.42 ($6.55 – $2.13 = $4.42).  The tip credit is the difference between the minimum wage and the tipped minimum wage. 

Virginia: On July 24, 2008 Virginia will also be increasing their minimum wage rate to $6.55 per hour.

District of Columbia: On July 24, 2008, Washington, D.C. will be increasing the minimum wage rate to $7.55 per hour.  Their tipped minimum wage will also increase to $3.40 per hour.

Contributed by Alexis J. Alber.