As if employers did not have enough to worry about with their employees, wages, meals, breaks and other regulations, the federal government has approved a minimum wage increase.

President Bush recently signed a bill which includes a provision to increase the federal minimum wage three times over the next two years. The first increase occurs on July 24, 2007 increasing the minimum wage to $5.85 per hour; July 24, 2008 the federal minimum wage will increase to $6.55; and the final increase will occur on July 24, 2009 raising the wage to $7.25 per hour. Despite these increases, the federal minimum wage remains less than California’s minimum wage. Therefore, California employers are bound by California law and must continue to pay non exempt employees at least the California minimum wage, which is currently $7.50 per hour. On January 1, 2008, California’s minimum wage will increase to $8.00 per hour.

Although there are no penalties or citations for failure to post the federal minimum wage poster, the law requires employers to post the new federal minimum wage poster when the new wage law goes into effect on July 24, 2007. As a result, both the California and the federal minimum wage posters must be displayed.

A copy of the poster is included with this Bulletin. A copy of the poster may be downloaded for printing at the following Department of Labor website: http://www.dol.gov/esa/regs/compliance/posters/flsa.htm. If you have any questions regarding the application of minimum wage to your employees in California please feel free to contact our office.