USLegal, Inc. Newsletter – July 2008
Congress Passes Sweeping Housing Rescue Legislation, Bush Signs into Law
With the US housing market continuing to struggle, the House and Senate this month passed a comprehensive bill designed to curb foreclosures and to extend additional credit to two of the nation’s leading mortgage lenders. President Bush signed the measure into law on July 30th.
The legislation is The Housing and Economic Recovery Act of 2008.
Some of the key provisions of the bill include the following:
* $300 billion in loans to help distressed homeowners refinance their mortgages into more affordable 30 year fixed loans backed by the government. The program is expected to help some 400,000 Americans to keep their homes. Of note, in return for refinancing a loan, borrowers agree to give the Federal Housing Administration a share in the profits of the home’s future appreciation.
*A tax break of up to $7,500 for first-time homebuyers. Eligible first-time buyers are those who purchase between April 9, 2008 and July 1, 2009 and who haven’t owned a home in three years.
*Authorizes the United States Department of The Treasury to provide an increased line of credit to Fannie Mae and Freddie Mac and creates a new regulator, the Federal Housing Finance Agency, to provide additional oversight of these mortgage lenders.
*Provides $3.9 billion in grants to states and local communities to buy and repair abandoned and foreclosed properties.
*Establishes an Office of Housing Counseling to provide counseling and educational material for people applying for mortgages.
The new FHA refinance program is expected to start on October 1, 2008. To find out if you qualify, contact your existing mortgage lender or locate an FHA approved lender for more details.
To learn more about the new housing legislation, visit the House Committee on Financial Services website at: http://www.house.gov/apps/list/press/financialsvcs_dem/press0723082.shtml.
More July Legal Headlines
New Minimum Wage Increase Goes into Effect
The national minimum wage increased to $6.55 per hour in July. The 70 cent increase came about as part of the Fair Minimum Wage Increase Act of 2007.
Previously, minimum wage was $5.85 an hour. Prior to the 2007 legislation, the rate was $5.15, a figure which had been in place since 1997.
An additional minimum wage increase is scheduled to take place on June 24, 2009.
At that time, a rate of $7.25 per hour will become effective.
For more on minimum wage, see Law and Legal Definitions section below.
Salmonella Outbreak – Tomatoes off Hook, Jalapenos Now Under Investigation
The U.S. Food and Drug Administration (FDA) lifted a warning against raw tomatoes in July saying it is safe for Americans to consume them again. However, the FDA has left a warning against hot peppers in place.
The FDA says jalapeno and Serrano peppers grown in the United States are safe. However, it is advising people to avoid eating raw jalapeno peppers that are harvested or packed in Mexico. The warning also includes items made from the same, such as salsa.
FDA inspectors have identified the Salmonella Saintpaul bacteria strain on Mexican jalapeno peppers located at a McAllen, Texas distribution plant.
Since April, the Saintpaul strain has caused over 1,304 individuals to become ill.
For more information on the Salmonella outbreak, see the following link: http://www.fda.gov/oc/opacom/hottopics/tomatoes.html#faq
For more legal news, visit the USLegal Reporter at http://reporter.uslegal.com.
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In Brief
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Law and Legal Definitions
Minimum Wage Law and Legal Definition
The Fair Labor Standards Act of 1938 (FLSA) is in a sense the basic law controlling employment and compensation issues in the United States. FLSA mandates that a minimum wage be paid, but the act classifies employees into two broad classes: those who are covered by the law because they are paid by the hour and those who are exempted because they are paid a salary. From this provision of the law we have the concept of “exempt” and “non-exempt” employees. All matters pertaining to the minimum wage are applicable only to “non-exempt” employees, i.e. those covered by the legislation. In addition to the federal minimum wage, state minimum wage rates are also in place.
In the areas of minimum wage and overtime there is dual regulation by states and by the federal government. If an employment situation falls within the jurisdiction of both state and federal law, then the employer must comply with the state or federal law that sets the higher standard.
Estimates of the number of people earning the minimum wage are difficult to establish in part because exemptions to the law exist for certain classes of worker—some of whose earnings may actually be higher than the minimum wage although, officially, they make less. For example, family members of the employer may be paid less than the minimum wage. Also exempted are employers of the disabled if the disability affects the person’s ability to work. Such individuals are often employed in sheltered workshops and environments. Full time students are not covered; students and apprentices part of whose work is learning need not be paid the minimum wage. Finally and most importantly, employees earning tips are exempted under the presumption that tips will make up the difference.
The Department of Labor’s Wage and Hour Division administers and enforces the federal minimum wage law.
For more legal definitions, please visit our free online legal dictionary at http://definitions.uslegal.com/.
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