Washington, D.C. 20530

July 31, 2007

MEMORANDUM FOR BUREAU HUMAN RESOURCES OFFICERS

Public Law 110-28, May 25, 2007, provides an increase to the minimum wage for American workers and a tax relief for small businesses, effective July 24, 2007, July 24, 2008, and July 24, 2009. Section 7102 of the Fair Minimum Wage Act of 2007 effects the new minimum wage. The Small Business and Work Opportunity Tax Act provide that employers must ensure that tipped employees will receive the new minimum wage(s) when tips and the minimum cash amount, combined, are insufficient. Please see the attached memorandum issued by the Office of Personnel Management.

If members of your staff have any questions, please contact Denise Corbitt, Human Resources Policy, on (202) 353-7786, or by e-mail at: Denise.V.Corbitt@usdoj.gov.

Attachment