The Federal Minimum Wage and Texas

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Don Baylor /(512) 320-0222 x 108

May 25, 2007

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Yesterday Congress passed the first increase in the federal minimum wage in a decade. Under the bill, which is expected to be signed by the President any day, the minimum wage would climb from $5.15 to $7.25/hour over the next 26 months. The first increase would occur 60 days after the bill is signed and would raise the minimum wage to $5.85/hour. It would then increase to $6.55/hour in 2008 and $7.25/hour in 2009. Since Texas' minimum wage is linked to the federal standard, 863,000 low-wage Texas workers earning less than $7/hour (8.5% of the statewide workforce) will see their wages increase.