HR Management & Compliance

New Congress Moving on Minimum Wage Increase

By a 315 to 116 vote, the
U.S. House of Representatives voted last month to approve legislation that
would boost the federal minimum wage from $5.15 per hour to $7.25 per hour in
three steps over 26 months. The measure is now under consideration in the


Under this bill, the federal
minimum wage would increase to $5.85 an hour on the 60th day after the bill is
signed into law. The minimum wage would increase to $6.55 an hour 12 months
after the first increase becomes effective. In the third step, the minimum wage
would rise to $7.25 per hour 24 months after the first increase goes into
effect. Business groups have opposed an increase to the minimum wage, arguing
that it would be especially burdensome on small businesses and would hurt the economy.
President Bush has said he would support a minimum wage increase if it were
linked to regulatory and tax breaks for small businesses. The House-approved
legislation contains no breaks for small businesses, but lawmakers in the
Senate are considering such provisions.


The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.


The federal minimum wage hasn’t increased since 1997. Twenty-nine
states, including California,
have approved minimum wages above $5.15 an hour. Any action on the federal
level would affect a number of those states because many of the state minimum
wages would fall somewhere between the first and third steps of the
House-approved proposal. However, here in California—where the state minimum wage
stands at $7.50 as of Jan. 1, 2007—the federal measure would impact only those
employers that also have operations in states with a lower minimum wage.