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Home | Weekly E-Alert Articles | Wage and Hour: President Signs Feder . . .

Wage and Hour: President Signs Federal Minimum Wage Increase Legislation
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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.

Additional Resources:

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

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