OFFICE OF STATE UNIFORM PAYROLL MEMORANDUM #98-07



July 31, 1997

To: All UPS Agencies
From: Ronald S. Mitchell, Director
Subject: Minimum Wage Rate Increase

In accordance with Federal regulations, the FLSA minimum wage rate will increase to $5.15 an hour with monthly rate of $893 on September 1, 1997. Agencies should take appropriate actions in UPS to establish employees with the new minimum wage rate.

Also, in accordance with the Federal Wage Garnishment Law, the amount of disposable income that is exempt from a garnishment is determined by the minimum wage rate. Due to the increase in the minimum wage rate September 1, 1997, to $5.15 an hour, the amount of biweekly disposable income exempt from a garnishment will increase from $285 to $309. This difference will be computed in the system (GA20 Calculated garnishment) beginning with September 12, 1997, payday.

If further information is needed, please call the UPS Help Desk at (504) 342-8928.

RSM:VRT:mmh


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