Minimum Wage Increase Effective 7/24

Minimum Wage Increase effective July 24, 2008

Just a reminder that, effective July 24, 2008, the federal minimum wage for covered non-exempt employees will rise from $5.85 to $6.55 per hour. The Fair Minimum Wage Act of 2007, which amended the Fair Labor Standards Act (FLSA), provides for phased-in increases ultimately reaching $7.25 per hour effective July 24, 2009. Prior to the law’s effective date, Maryland’s minimum wage of $6.15 governs. Thereafter, the federal law’s $6.55 per hour will govern unless or until Maryland’s minimum wage law is amended to exceed the federal minimum. Covered employers must comply with both. The youth minimum wage and tip credit provisions of the FLSA remain the same.

Please contact Nicole Windsor at 410-583-2400 if you have any questions.

Personal Liability Affirmed in Maryland Construction Trust Law Case

The Maryland Court of Special Appeals affirmed for the first time the personal liability of an individual for not paying subcontractors under the Maryland Construction Trust Law, only four weeks after issuing an opinion reversing a finding of personal liability on behalf of a managing agent who received money from a general contractor but failed to pay his supplier. See Wednesday, May 21, 2008 Blog Entry entitled “Maryland’s Construction Trust Laws Limited by Court of Special Appeals.” In the most recent case, the Court found that the subcontractor met all of the specific requirements of the Maryland Construction Trust Law. This included the issuance of specific invoices to the subcontractor and the fact that the general could not account for more than $124,000.00 in funds. In the case where the Court reversed the finding of personal liability, the contractor issued a general invoice for expenses to the subcontractor. As a result, the Court deemed that the payments received could not be ear-marked or held in trust for a specific subcontractor.

For further questions, please contact Matthew G. Hjortsberg or Michael W. Siri at 410-583-2400 or at Hjortsberg@bowie-jensen.com or Siri@bowie-jensen.com, respectively.