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Wage and Hour: President Signs Federal Minimum Wage Increase Legislation

Just before the Memorial Day weekend, President Bush signed the Fair Minimum Wage Act of 2007 (H.R. 2206) to boost the federal minimum wage to $7.25 per hour in three steps over 26 months. The first increase to $5.85/hour will take effect on July 24, 2007. On July 24, 2008, the rate will increase to $6.55, and then up to $7.25 on July 24, 2009. The rate hike is the first since 1997.

For employers in states that already have a higher minimum wage—such as here in California, where the minimum wage is currently $7.50/hour and set to rise to $8.00 on Jan. 1, 2008—the new federal rate won’t have an impact.


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.


Additional Resources:

Fair Minimum Wage Act of 2007 H.R. 2206 (Title VIII)