A string of administrative actions, judicial decisions and legislative initiatives, from verifying proper pay structures to ensuring workers are documented, could have an impact on construction industry employers. It's critical to be aware of and respond to these important developments, each of which could ultimately impact your business.

IN EFFECT

Federal Minimum Wage Increase

On July 24, 2007, the federal minimum wage increased from $5.15 to $5.85 per hour. This is the first of three scheduled increases: on July 24, 2008, the minimum wage will increase again to $6.55 /hour, and on July 24, 2009 to $7.25/ hour.

The law provides certain exceptions which may benefit construction-industry employers. For example, companies can pay new employees under 20 years of age a reduced "training wage" during their first 90 days of employment.

Importantly, at least 25 states have minimum wage rates higher than the federal minimum. Where federal and state laws have different minimum wage rates, the higher rate must be paid to covered employees.

It is also important to note that these wage rates apply to employees covered by collective bargaining agreements. Therefore, if an agreement calls for wages below the federal or state minimums, an employer will need to adjust those wage rates in order to comply with the new minimum wage rates.