Texas State Implements New Federal Minimum Wage Effective July 22, 2007

On May 25, 2007, President Bush signed into law legislation increasing the federal minimum wage to $5.85 per hour by July 24, 2007, $6.55 per hour by July 24, 2008, and $7.25 per hour by July 24, 2009.  Accordingly, adjustments will be made in the University Pay Plan to the minimum rates of pay for staff and students on the dates specified below.

Questions

Questions concerning whether the new minimum wage affects you should be directed to your supervisor.  Questions concerning the new law or implementation policy/procedures should be directed to Human Resources at 245-2557 or hr@txstate.edu. 

INFORMATION FOR DEPARTMENT HEADS

Who is Affected and How Will They Be Notified

Employees currently paid below $5.85 per hour will automatically receive an increase to the new $5.85 per hour minimum.  Departments do not need to process a PCR.  However, any increases granted by Department Heads above the minimum wage will require a PCR.

Department Heads are responsible for notifying affected employees in their departments of any pay adjustments.

Budgeting Information

President’s Cabinet has decided to increase student wage budgets to cover hours worked below the new minimum for Method of Finance accounts – that is, those accounts funded by appropriations and tuition (statutory and Designated).

•   That calculation was based on hours worked and wages paid in fiscal year 2006.

•   Method of Finance accounts will receive a budget transfer for 41/365 of the calculated difference before the first payroll with the new minimum wage is posted.

•   Method of Finance accounts will receive a permanent budget transfer for 100% of the calculated difference at the beginning of fiscal year 2008.

Income-generating, fee-based, and restricted funds including grants will have to fund their own wage increases.

If you have any questions about funding minimum wage increases, contact the Budget Office at 5-2376 or budget@txstate.edu.

                                                                                   
PAY PLAN ADJUSTMENTS DUE TO NEW MINIMUM WAGE

Staff Pay Plan
•  Effective July 22, 2007, the minimum rate of pay will be raised to $5.85 per hour.

•  Effective July 20, 2008, the minimum rate of pay will be raised to $6.55 per hour.

•  Effective July 19, 2009, the minimum rate of pay will be raised to $7.25 per hour.

Student Pay Plan

•  Effective July 22, 2007, the pay range will be $5.85 to $12.00 per hour.

•  Effective July 20, 2008, the pay range will be $6.55 to $13.00 per hour.

•  Effective July 19, 2009, the pay range will be $7.25 to $14.00 per hour.