Filed Under (Business, Idaho, National, News) by Jason Ford on July-15-2008

Both the Idaho and federal minimum wages are scheduled to increase on July 24.

The minimum wage will increase from $5.85 to $6.55 an hour under state and federal laws passed in 2007. It is the second of three increases that will set the wage at $7.25 an hour a year from now - the wage rose from $5.15 to $5.85 an hour last July.

Over 40 percent of those receiving a pay boost in 2007 worked in leisure and hospitality, which includes restaurants, hotels and recreational businesses.

States are not required to adhere to the federal minimum wage, but the Idaho Legislature voted last year to make Idaho’s basic minimum wage identical to the federal level so that any change in the federal wage would immediately be reflected in the state.

The minimum wage for Idaho employees in jobs where they earn tips — such as bartenders, waiters and waitresses — remains unchanged at $3.35 an hour. But employers must ensure that tips provide another $3.20 an hour so that tips combined with wages equal at least the new minimum. If the combination falls short, the employer is required to make up the difference.

July’s minimum wage increase is likely to have the least impact in the northern part of the state. Employers in border cities like Moscow, Lewiston and Coeur d’Alene have had to boost wages well over the minimum to compete for qualified workers with businesses in Washington, where the minimum wage is $8.07 an hour.

Oregon’s minimum is $7.95 an hour.



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