California's Minimum Wage Set to Increase to Highest in the Nation

$8 Per Hour Rate Starts With New Year
SAN FRANCISCO--(Business Wire)--California workers who earn the minimum wage will see their pay
increase to $8 per hour starting Jan. 1, 2008. California will be tied
with Massachusetts for the highest state minimum wage in the nation.

The increased minimum wage was approved by Governor Arnold
Schwarzenegger on Sept. 12, 2006 when he signed into law Assembly bill
1835, which increases the minimum wage in two phases. In the first
phase, the minimum wage jumped from $6.75 to $7.50 per hour on Jan. 1,
2007. In the second phase, the minimum wage increases to $8 per hour
on Jan. 1, 2008.

"This wage increase will benefit more than 1.4 million
hard-working Californians," said Department of Industrial Relations
Director John Duncan. "With this increase, we are demonstrating the
value we attach to the work these employees provide to our state and
its dynamic economy."

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, 2008 will be $36.

To provide employers and employees with information on the changes
in the minimum wage, the Department of Industrial Relations' 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, 2008 may contact
the DLSE to file a wage claim. For information on how to file a wage
claim, please visit our web site at
http://www.dir.ca.gov/dlse/HowToFileWageClaim.htm.

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 http://www.dir.ca.gov/wage.

California Department of Industrial Relations
Dean Fryer, 415-703-5050
www.dir.ca.gov

Copyright Business Wire 2007