The final of three increases in the minimum wage goes into effect on July 24, 2009. The 70-cent increase will bring the minimum wage rate to $7.25 an hour. The next few weeks will be the last opportunity for administrators to review the pay of nonexempt employees and substitutes and make the necessary adjustments to ensure that the district complies with the Fair Labor Standards Act following the increase. Districts that haven’t already done so must also update their salary plans to ensure that entry-level workers make at least $7.25 an hour.
Data collected for the annual Salaries and Benefits in Texas Public Schools survey indicates that some districts will have to change their daily rate of pay for substitutes—particularly nondegreed, noncertified subs—to ensure that they earn more than the minimum wage. Minimum wage rules apply to substitutes even though they are classified as exempt employees.
Twenty-three percent of districts reported that their nondegreed substitutes earned $54 or less. Nondegreed substitute pay will have to rise to at least $55 (assuming they work a seven-and-a-half hour day) to remain in compliance. Districts whose substitutes work an eight-hour day will need to raise their rates for nondegreed subs to at least $58 per day. At survey time, nearly half of all reporting districts paid less. A small percentage of districts indicated that they pay less than $7.25 an hour for degreed, certified, and long-term subs.
