Federal Minimum Wage to Increase in July 2007
President Bush recently signed into law the Fair Minimum Wage Act of 2007. This legislation is designed to increase the federal minimum wage in three increments over the next two years. The first increase will be from the current rate of $5.15 to $5.85 per hour beginning July 24, 2007. The minimum wage will then increase to $6.55 per hour beginning July 24, 2008, and $7.25 per hour effective July 24, 2009. Employers should ensure that their mandatory postings reflect the newly adjusted minimum wages.
Note that this increase in the federal minimum wage will not affect the wages earned by California employees, who are currently entitled to the higher minimum wage of $7.50 per hour ($8.00 per hour effective January 1, 2008). Additionally, San Francisco employers must pay their employees the city's current minimum wage of $9.14 per hour.