Governor Signs Minimum Wage Bill
Yesterday, September 12, 2006, Governor Schwarzenegger signed the bill that raises California's minimum wage, currently $6.75 per hour, to $7.50 per hour on January 1, 2007. On January 1, 2008, California’s minimum wage will increase to $8 per hour.
The increase will also affect some of California's exempt executive, administrative and professional employees who must meet minimum salary requirements (in addition to a duties test) that are tied to the state minimum wage. Exempt employees must earn a monthly salary equivalent to no less than two times the state minimum wage for full-time employment. With the current minimum wage of $6.75 per hour, exempt employees must earn a monthly salary of at least $2,340 ($2,340 = $28,080 ÷ 12), which is an annual salary of at least $28,080 per year ($28,080 = 2 x $6.75 x 40 hours x 52 weeks). On January 1, 2007, the minimum salary requirement to qualify as an exempt employee will increase to $2,600 per month, or $31,200 per year. On January 1, 2008, the amount exempt employees must earn will increase to $2,773.33 per month, or $33,280 per year.