In our last blog, we reported that the federal minimum wage was set to increase on July 24, 2009, which would result in an increase from $6.55 to $7.25 per hour, thereby making the minimum wage rate under federal law higher than the minimum wage under New York law, which was $7.15. Under such circumstances, the New York minimum wage would be replaced by the higher rate under the federal Fair Labor Standards Act. Nevertheless, the New York State Department of Labor has acted by formerly increasing the wage rate under New York law to $7.25.
Based upon 2007 amendments to the Fair Labor Standards Act (FLSA), the federal minimum wage is set to increase from $6.55 to $7.25. This increase results in the federal minimum wage rate once again being higher than the minimum wage required under New York law. Currently, New York law requires that employers pay a minimum wage of no less than $7.15. Because the New York minimum wage was higher than that required under the FLSA, employers were required to comply with the New York State minimum wage.
Several New York City and area car washes, together with their corporate president, have agreed to pay 1,187 current and former employees a total of $3.4 million, reflecting back pay and liquidated damages in order to resolve a lawsuit filed by the U.S. Department of Labor under the Fair Labor Standards Act (FLSA). The lawsuit was filed in the United States District Court for the Southern District of New York.