Human Resource Blog

California Minimum Wage

Is the California minimum wage going to increase?

On January 1, 2008 California will increase the minimum wage to $8.00 per hour. Currently the state minimum wage is $7.50. The current minimum wage in California is $1.65 higher than the federal minimum wage of $5.85. California is a leading state on this issue because their minimum wage is one of the highest in the United States. 

When the increase occurs on January 1, 2008 California’s rate will be one of the highest in the country. It will be tied with Massachusetts at $8.00 and second only to the state of Washington, which will have a minimum wage of $8.07. 

The minimum wage is the lowest wage a business can pay an employee. This wage was designed to prevent abuse of workers for work provided by an employee. States have the choice to follow federal minimum wage guidelines or create their own. Minors and adults are paid the same minimum wage in the state of California.

Employers must be careful to pay the prescribed minimum wage otherwise they can be fined or even sued. One exception to the minimum wage includes students who are enrolled in school. The student can be paid 85% of the minimum wage, or $6.80 after January 1, 2008,  during their first 160 hours of employment. There are other exceptions which include mentally or physically disabled people, non-profit organizations, rehab facilities that employ disabled workers. The state requires the employer to have a special license if there is a need to pay less than the minimum wage.

When the minimum wage laws change, all employers in California need to update their minimum wage posters to stay current with the law. More information is available at www.laborlawcenter.com. GW