Last Tuesday, the federal minimum wage officially increased to $5.85 per hour and will be $7.25 by 2009. Senator Ted Kennedy and other Democrats are already talking about increasing the minimum wage further beyond 2009, to $9.50 by 2011 or 2012.
Many states simply keep their minimum wages indexed to inflation or another cost of living measurement. That’s a good tactic for the federal government, as well. Nevertheless, I find it unlikely this will pass Congress so soon after the Fair Minimum Wage Act of 2007.