IR #2006-35
Friday, December 29, 2006

Dean Fryer
Renée Bacchini
(415) 703-5050

Minimum wage increases to $7.50 per hour starting January 1

SAN FRANCISCO - California workers who earn minimum wage will see their pay increase to $7.50 per hour starting Monday, Jan. 1, 2007. The increased minimum wage was approved by Governor Arnold Schwarzenegger on September 12 when he signed into law Assembly bill 1835 (Lieber), which increases the minimum wage in two phases. On Jan. 1, 2007 the minimum wage jumps from $6.75 to $7.50 per hour, and on Jan. 1, 2008 the minimum wage increases to $8.00 per hour.

Employers must pay their workers the new minimum wage rate for work performed on and after the effective date of the wage rate increase. Work performed prior to the effective date is paid at the previous rate.

The minimum wage increase also affects the hourly base rate of pay for computer software employees who are considered exempt. This base rate of pay is one factor to be used by an employer when determining whether or not their computer software employees are exempt from overtime. The hourly base rate effective Jan. 1, 2007 will be $49.77.

To provide employers and employees with information on the changes in the minimum wage, the Division of Labor Standards Enforcement (DLSE) will provide a toll-free phone line with a recorded message summarizing these changes. The number is 1-888-ASK-WAGE (1-888-275-9243) and the message is available in English, Spanish and Chinese.

Employees not paid the new wage beginning Jan.1, 2007 may contact DLSE to file a wage claim. For information on how to file a wage claim, please visit our web site at

For more information on the minimum wage and to receive copies of the new official minimum wage notice and Industrial Welfare Commission (IWC) Wage Orders visit our web site at

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