MARCH 2006

I. LEGISLATIVE/REGULATORY UPDATE

Increases in Minimum Wage Rates to be Considered in 2006

During the last several months, both the California Legislature and Governor Schwarzenegger have commented that the California minimum wage (which is currently $1.60 more than the federal minimum wage) should be increased.

So far this year, four bills have been introduced to increase the minimum wage from $6.75 an hour to $7.25 an hour, and then to $7.75 per hour. The bills are AB 1832 (Lieber), AB 1844 (Chavez), SB 1162 (Cedillo), and SB 1167 (Maldanado). Each of these bills contains requirements that in the future, the minimum wage would automatically increase based upon inflation.

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