Contractual payroll and the new federal minimum wage

Effective July 24, 2008, the federal minimum wage will change from $6.15/hr to $6.55/hr.

To minimize the impact upon agencies, Central Payroll Bureau will automate the minimum wage rate increase for the affected hourly employees on the Contract/Special Payments payroll. All hourly rates between $6.15 and $6.54 will be changed to $6.55 per hour. Hourly rates below the current minimum wage of $6.15 will remain unchanged. If your agency has employees below the minimum wage rate and you are changing their wage rate, a completed CPB-311T with the new rate must be sent to Central Payroll for processing.

The automated change will be processed pay period ending August 5, 2008. Your agency will be responsible for any manual adjustments needed for the first day of the pay period (July 23, 2008). These adjustments can be made on the Positive Time Report.

A new CPB-311T with the new hourly rate will be distributed after August 1, 2008. The CPB-311T's should be verified and the earlier dated CPB-311T (with the old rate) should be destroyed.

Because there are CPB-311T's that could be in transit from your agency at the time we convert the file, it is important that you monitor your Positive Time Report for the next few pay periods and send corrections, if needed.

If you have any questions regarding the procedures, call Pamela Foster at (410) 260-7479. Please copy and distribute this memo to appropriate personnel at your agency. Thank you for your cooperation.