Federal Minimum Wage Increase Approved

California's minimum wage is higher than the federal counterpart. But California employers with operations in other states may be interested to know the federal minimum wage is going up. Part of an Iraq funding bill, HR 2206, the minimum wage increase to $5.85 per hour (from $5.15) takes effect 60 days from May 25, the date of its passage. 12 months later, the wage increases to $6.55, and then to $7.25 12 months after that. The text of the new federal minimum wage law is here.

The California minimum wage presently is $7.50 and will rise to $8.00 on January 1, 2008.

San Francisco's minimum wage for 2007 is $9.16 and changes (increases) every year because it is indexed to inflation.