Wage and Hour Division (WHD)

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WASHINGTON -- The U.S. Department of Labor reminds employers and employees in American Samoa and the Commonwealth of the Northern Mariana Islands (CNMI) that new minimum wage rates will apply in the territories. The federal minimum wages for industries in American Samoa will increase on July 24, 2007. Additionally, a new federal minimum wage for the CNMI, which is across the international dateline, will be effective on July 25 local time.

The Fair Minimum Wage Act of 2007 amended the FLSA to increase the general federal minimum wage in the states in three steps: to $5.85 per hour effective July 24, 2007; to $6.55 per hour effective July 24, 2008; and to $7.25 per hour effective July 24, 2009. A separate provision of the bill will bring about phased increases to the minimum wages in American Samoa and the CNMI. Under this new provision, the minimum rates in these territories will increase $0.50 an hour each May until they reach the minimum wage generally applicable in the U.S.

Prior to the FLSA amendment, the minimum wage rates in American Samoa were established by special industry committees that met biennially. Minimum wage rates in American Samoa, which vary by industry, range from $3.18 for garment manufacturing to $4.59 for stevedoring. Minimum rates in each industry will increase by $0.50 each year on May 25.

In addition, the CNMI minimum wage was set by the CNMI government under the authority of a covenant between the people of the Northern Marianas and the U.S. Congress. The overtime, youth employment and recordkeeping provisions of the FLSA were applicable to CNMI before the change and will continue to apply as before. The minimum wage for the CNMI will increase to $3.55 an hour on July 25, 2007, and to $4.05 an hour on May 26, 2008.

The department’s Wage and Hour Division, which enforces the FLSA, has updated compliance assistance information on its Web site at www.wagehour.dol.gov. Revised minimum wage posters, reflecting the increases for the CNMI and American Samoa, are available for viewing, free downloading and posting. Every employer subject to the FLSA minimum wage provisions must post, and keep posted, a notice explaining the FLSA’s provisions in all of its establishments so that employees are readily able to read it.

A revised FLSA Handy Reference Guide is also available electronically from the agency’s Web site. This document provides guidance on related FLSA provisions, such as the payment of less than the full minimum wage to certain workers with disabilities, full-time students, and student-learners who are employed under a special certificate. The guide also provides information on provisions relating to the payment of wages to tipped employees.

Employers and employees seeking more compliance information on the new minimum wage rates may call the Wage and Hour Division’s toll-free number at (866) 4US-WAGE (487-9243). Fact sheets and further guidance are available on the division’s Web site.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.